diff --git a/esphome/components/animation/__init__.py b/esphome/components/animation/__init__.py
index 7c9ff07f97..4cf0b0ed7d 100644
--- a/esphome/components/animation/__init__.py
+++ b/esphome/components/animation/__init__.py
@@ -92,6 +92,29 @@ async def to_code(config):
                 data[pos] = pix[2]
                 pos += 1
 
+    elif config[CONF_TYPE] == "RGB565":
+        data = [0 for _ in range(height * width * 2 * frames)]
+        pos = 0
+        for frameIndex in range(frames):
+            image.seek(frameIndex)
+            frame = image.convert("RGB")
+            if CONF_RESIZE in config:
+                frame = frame.resize([width, height])
+            pixels = list(frame.getdata())
+            if len(pixels) != height * width:
+                raise core.EsphomeError(
+                    f"Unexpected number of pixels in {path} frame {frameIndex}: ({len(pixels)} != {height*width})"
+                )
+            for pix in pixels:
+                R = pix[0] >> 3
+                G = pix[1] >> 2
+                B = pix[2] >> 3
+                rgb = (R << 11) | (G << 5) | B
+                data[pos] = rgb >> 8
+                pos += 1
+                data[pos] = rgb & 255
+                pos += 1
+
     elif config[CONF_TYPE] == "BINARY":
         width8 = ((width + 7) // 8) * 8
         data = [0 for _ in range((height * width8 // 8) * frames)]
diff --git a/esphome/components/display/display_buffer.cpp b/esphome/components/display/display_buffer.cpp
index 4ad353a254..d00fdd5240 100644
--- a/esphome/components/display/display_buffer.cpp
+++ b/esphome/components/display/display_buffer.cpp
@@ -242,6 +242,13 @@ void DisplayBuffer::image(int x, int y, Image *image, Color color_on, Color colo
         }
       }
       break;
+    case IMAGE_TYPE_RGB565:
+      for (int img_x = 0; img_x < image->get_width(); img_x++) {
+        for (int img_y = 0; img_y < image->get_height(); img_y++) {
+          this->draw_pixel_at(x + img_x, y + img_y, image->get_rgb565_pixel(img_x, img_y));
+        }
+      }
+      break;
   }
 }
 
@@ -497,6 +504,17 @@ Color Image::get_color_pixel(int x, int y) const {
                            (progmem_read_byte(this->data_start_ + pos + 0) << 16);
   return Color(color32);
 }
+Color Image::get_rgb565_pixel(int x, int y) const {
+  if (x < 0 || x >= this->width_ || y < 0 || y >= this->height_)
+    return Color::BLACK;
+  const uint32_t pos = (x + y * this->width_) * 2;
+  uint16_t rgb565 =
+      progmem_read_byte(this->data_start_ + pos + 0) << 8 | progmem_read_byte(this->data_start_ + pos + 1);
+  auto r = (rgb565 & 0xF800) >> 11;
+  auto g = (rgb565 & 0x07E0) >> 5;
+  auto b = rgb565 & 0x001F;
+  return Color((r << 3) | (r >> 2), (g << 2) | (g >> 4), (b << 3) | (b >> 2));
+}
 Color Image::get_grayscale_pixel(int x, int y) const {
   if (x < 0 || x >= this->width_ || y < 0 || y >= this->height_)
     return Color::BLACK;
@@ -532,6 +550,20 @@ Color Animation::get_color_pixel(int x, int y) const {
                            (progmem_read_byte(this->data_start_ + pos + 0) << 16);
   return Color(color32);
 }
+Color Animation::get_rgb565_pixel(int x, int y) const {
+  if (x < 0 || x >= this->width_ || y < 0 || y >= this->height_)
+    return Color::BLACK;
+  const uint32_t frame_index = this->width_ * this->height_ * this->current_frame_;
+  if (frame_index >= (uint32_t)(this->width_ * this->height_ * this->animation_frame_count_))
+    return Color::BLACK;
+  const uint32_t pos = (x + y * this->width_ + frame_index) * 2;
+  uint16_t rgb565 =
+      progmem_read_byte(this->data_start_ + pos + 0) << 8 | progmem_read_byte(this->data_start_ + pos + 1);
+  auto r = (rgb565 & 0xF800) >> 11;
+  auto g = (rgb565 & 0x07E0) >> 5;
+  auto b = rgb565 & 0x001F;
+  return Color((r << 3) | (r >> 2), (g << 2) | (g >> 4), (b << 3) | (b >> 2));
+}
 Color Animation::get_grayscale_pixel(int x, int y) const {
   if (x < 0 || x >= this->width_ || y < 0 || y >= this->height_)
     return Color::BLACK;
diff --git a/esphome/components/display/display_buffer.h b/esphome/components/display/display_buffer.h
index 8ee1cd8779..86221c5f96 100644
--- a/esphome/components/display/display_buffer.h
+++ b/esphome/components/display/display_buffer.h
@@ -82,6 +82,7 @@ enum ImageType {
   IMAGE_TYPE_GRAYSCALE = 1,
   IMAGE_TYPE_RGB24 = 2,
   IMAGE_TYPE_TRANSPARENT_BINARY = 3,
+  IMAGE_TYPE_RGB565 = 4,
 };
 
 enum DisplayRotation {
@@ -453,6 +454,7 @@ class Image {
   Image(const uint8_t *data_start, int width, int height, ImageType type);
   virtual bool get_pixel(int x, int y) const;
   virtual Color get_color_pixel(int x, int y) const;
+  virtual Color get_rgb565_pixel(int x, int y) const;
   virtual Color get_grayscale_pixel(int x, int y) const;
   int get_width() const;
   int get_height() const;
@@ -470,6 +472,7 @@ class Animation : public Image {
   Animation(const uint8_t *data_start, int width, int height, uint32_t animation_frame_count, ImageType type);
   bool get_pixel(int x, int y) const override;
   Color get_color_pixel(int x, int y) const override;
+  Color get_rgb565_pixel(int x, int y) const override;
   Color get_grayscale_pixel(int x, int y) const override;
 
   int get_animation_frame_count() const;
diff --git a/esphome/components/image/__init__.py b/esphome/components/image/__init__.py
index 70d77dfd14..0004391f20 100644
--- a/esphome/components/image/__init__.py
+++ b/esphome/components/image/__init__.py
@@ -25,6 +25,7 @@ IMAGE_TYPE = {
     "GRAYSCALE": ImageType.IMAGE_TYPE_GRAYSCALE,
     "RGB24": ImageType.IMAGE_TYPE_RGB24,
     "TRANSPARENT_BINARY": ImageType.IMAGE_TYPE_TRANSPARENT_BINARY,
+    "RGB565": ImageType.IMAGE_TYPE_RGB565,
 }
 
 Image_ = display.display_ns.class_("Image")
@@ -89,6 +90,21 @@ async def to_code(config):
             data[pos] = pix[2]
             pos += 1
 
+    elif config[CONF_TYPE] == "RGB565":
+        image = image.convert("RGB")
+        pixels = list(image.getdata())
+        data = [0 for _ in range(height * width * 3)]
+        pos = 0
+        for pix in pixels:
+            R = pix[0] >> 3
+            G = pix[1] >> 2
+            B = pix[2] >> 3
+            rgb = (R << 11) | (G << 5) | B
+            data[pos] = rgb >> 8
+            pos += 1
+            data[pos] = rgb & 255
+            pos += 1
+
     elif config[CONF_TYPE] == "BINARY":
         image = image.convert("1", dither=dither)
         width8 = ((width + 7) // 8) * 8