diff --git a/esphome/components/udp/__init__.py b/esphome/components/udp/__init__.py
index 9be196d420..8252e35023 100644
--- a/esphome/components/udp/__init__.py
+++ b/esphome/components/udp/__init__.py
@@ -12,8 +12,8 @@ from esphome.components.packet_transport import (
 )
 import esphome.config_validation as cv
 from esphome.const import CONF_DATA, CONF_ID, CONF_PORT, CONF_TRIGGER_ID
-from esphome.core import ID, Lambda
-from esphome.cpp_generator import ExpressionStatement, MockObj
+from esphome.core import ID
+from esphome.cpp_generator import literal
 
 CODEOWNERS = ["@clydebarrow"]
 DEPENDENCIES = ["network"]
@@ -24,6 +24,8 @@ udp_ns = cg.esphome_ns.namespace("udp")
 UDPComponent = udp_ns.class_("UDPComponent", cg.Component)
 UDPWriteAction = udp_ns.class_("UDPWriteAction", automation.Action)
 trigger_args = cg.std_vector.template(cg.uint8)
+trigger_argname = "data"
+trigger_argtype = [(trigger_args, trigger_argname)]
 
 CONF_ADDRESSES = "addresses"
 CONF_LISTEN_ADDRESS = "listen_address"
@@ -111,13 +113,14 @@ async def to_code(config):
     cg.add(var.set_addresses([str(addr) for addr in config[CONF_ADDRESSES]]))
     if on_receive := config.get(CONF_ON_RECEIVE):
         on_receive = on_receive[0]
-        trigger = cg.new_Pvariable(on_receive[CONF_TRIGGER_ID])
+        trigger_id = cg.new_Pvariable(on_receive[CONF_TRIGGER_ID])
         trigger = await automation.build_automation(
-            trigger, [(trigger_args, "data")], on_receive
+            trigger_id, trigger_argtype, on_receive
         )
-        trigger = Lambda(str(ExpressionStatement(trigger.trigger(MockObj("data")))))
-        trigger = await cg.process_lambda(trigger, [(trigger_args, "data")])
-        cg.add(var.add_listener(trigger))
+        trigger_lambda = await cg.process_lambda(
+            trigger.trigger(literal(trigger_argname)), trigger_argtype
+        )
+        cg.add(var.add_listener(trigger_lambda))
         cg.add(var.set_should_listen())
 
 
diff --git a/esphome/core/__init__.py b/esphome/core/__init__.py
index 9a7dd49609..5308ad241e 100644
--- a/esphome/core/__init__.py
+++ b/esphome/core/__init__.py
@@ -278,9 +278,13 @@ LAMBDA_PROG = re.compile(r"\bid\(\s*([a-zA-Z_][a-zA-Z0-9_]*)\s*\)(\.?)")
 
 class Lambda:
     def __init__(self, value):
+        from esphome.cpp_generator import Expression, statement
+
         # pylint: disable=protected-access
         if isinstance(value, Lambda):
             self._value = value._value
+        elif isinstance(value, Expression):
+            self._value = str(statement(value))
         else:
             self._value = value
         self._parts = None
diff --git a/esphome/cpp_generator.py b/esphome/cpp_generator.py
index cff0748c95..83f2d6cf81 100644
--- a/esphome/cpp_generator.py
+++ b/esphome/cpp_generator.py
@@ -462,6 +462,16 @@ def statement(expression: Expression | Statement) -> Statement:
     return ExpressionStatement(expression)
 
 
+def literal(name: str) -> "MockObj":
+    """Create a literal name that will appear in the generated code
+    not surrounded by quotes.
+
+    :param name: The name of the literal.
+    :return: The literal as a MockObj.
+    """
+    return MockObj(name, "")
+
+
 def variable(
     id_: ID, rhs: SafeExpType, type_: "MockObj" = None, register=True
 ) -> "MockObj":
@@ -665,7 +675,7 @@ async def get_variable_with_full_id(id_: ID) -> tuple[ID, "MockObj"]:
 
 
 async def process_lambda(
-    value: Lambda,
+    value: Lambda | Expression,
     parameters: TemplateArgsType,
     capture: str = "",
     return_type: SafeExpType = None,
@@ -689,6 +699,14 @@ async def process_lambda(
 
     if value is None:
         return None
+    # Inadvertently passing a malformed parameters value will lead to the build process mysteriously hanging at the
+    # "Generating C++ source..." stage, so check here to save the developer's hair.
+    assert isinstance(parameters, list) and all(
+        isinstance(p, tuple) and len(p) == 2 for p in parameters
+    )
+    if isinstance(value, Expression):
+        value = Lambda(value)
+
     parts = value.parts[:]
     for i, id in enumerate(value.requires_ids):
         full_id, var = await get_variable_with_full_id(id)
diff --git a/tests/unit_tests/test_cpp_generator.py b/tests/unit_tests/test_cpp_generator.py
index 2c9f760c8e..8755e6e2a1 100644
--- a/tests/unit_tests/test_cpp_generator.py
+++ b/tests/unit_tests/test_cpp_generator.py
@@ -347,3 +347,280 @@ class TestMockObj:
         assert isinstance(actual, cg.MockObj)
         assert actual.base == "foo.eek"
         assert actual.op == "."
+
+
+class TestStatementFunction:
+    """Tests for the statement() function."""
+
+    def test_statement__expression_converted_to_statement(self):
+        """Test that expressions are converted to ExpressionStatement."""
+        expr = cg.RawExpression("foo()")
+        result = cg.statement(expr)
+
+        assert isinstance(result, cg.ExpressionStatement)
+        assert str(result) == "foo();"
+
+    def test_statement__statement_unchanged(self):
+        """Test that statements are returned unchanged."""
+        stmt = cg.RawStatement("foo()")
+        result = cg.statement(stmt)
+
+        assert result is stmt
+        assert str(result) == "foo()"
+
+    def test_statement__expression_statement_unchanged(self):
+        """Test that ExpressionStatement is returned unchanged."""
+        stmt = cg.ExpressionStatement(42)
+        result = cg.statement(stmt)
+
+        assert result is stmt
+        assert str(result) == "42;"
+
+    def test_statement__line_comment_unchanged(self):
+        """Test that LineComment is returned unchanged."""
+        stmt = cg.LineComment("This is a comment")
+        result = cg.statement(stmt)
+
+        assert result is stmt
+        assert str(result) == "// This is a comment"
+
+
+class TestLiteralFunction:
+    """Tests for the literal() function."""
+
+    def test_literal__creates_mockobj(self):
+        """Test that literal() creates a MockObj."""
+        result = cg.literal("MY_CONSTANT")
+
+        assert isinstance(result, cg.MockObj)
+        assert result.base == "MY_CONSTANT"
+        assert result.op == ""
+
+    def test_literal__string_representation(self):
+        """Test that literal names appear unquoted in generated code."""
+        result = cg.literal("nullptr")
+
+        assert str(result) == "nullptr"
+
+    def test_literal__can_be_used_in_expressions(self):
+        """Test that literals can be used as part of larger expressions."""
+        null_lit = cg.literal("nullptr")
+        expr = cg.CallExpression(cg.RawExpression("my_func"), null_lit)
+
+        assert str(expr) == "my_func(nullptr)"
+
+    def test_literal__common_cpp_literals(self):
+        """Test common C++ literal values."""
+        test_cases = [
+            ("nullptr", "nullptr"),
+            ("true", "true"),
+            ("false", "false"),
+            ("NULL", "NULL"),
+            ("NAN", "NAN"),
+        ]
+
+        for name, expected in test_cases:
+            result = cg.literal(name)
+            assert str(result) == expected
+
+
+class TestLambdaConstructor:
+    """Tests for the Lambda class constructor in core/__init__.py."""
+
+    def test_lambda__from_string(self):
+        """Test Lambda constructor with string argument."""
+        from esphome.core import Lambda
+
+        lambda_obj = Lambda("return x + 1;")
+
+        assert lambda_obj.value == "return x + 1;"
+        assert str(lambda_obj) == "return x + 1;"
+
+    def test_lambda__from_expression(self):
+        """Test Lambda constructor with Expression argument."""
+        from esphome.core import Lambda
+
+        expr = cg.RawExpression("x + 1")
+        lambda_obj = Lambda(expr)
+
+        # Expression should be converted to statement (with semicolon)
+        assert lambda_obj.value == "x + 1;"
+
+    def test_lambda__from_lambda(self):
+        """Test Lambda constructor with another Lambda argument."""
+        from esphome.core import Lambda
+
+        original = Lambda("return x + 1;")
+        copy = Lambda(original)
+
+        assert copy.value == original.value
+        assert copy.value == "return x + 1;"
+
+    def test_lambda__parts_parsing(self):
+        """Test that Lambda correctly parses parts with id() references."""
+        from esphome.core import Lambda
+
+        lambda_obj = Lambda("return id(my_sensor).state;")
+        parts = lambda_obj.parts
+
+        # Parts should be split by LAMBDA_PROG regex: text, id, op, text
+        assert len(parts) == 4
+        assert parts[0] == "return "
+        assert parts[1] == "my_sensor"
+        assert parts[2] == "."
+        assert parts[3] == "state;"
+
+    def test_lambda__requires_ids(self):
+        """Test that Lambda correctly extracts required IDs."""
+        from esphome.core import ID, Lambda
+
+        lambda_obj = Lambda("return id(sensor1).state + id(sensor2).value;")
+        ids = lambda_obj.requires_ids
+
+        assert len(ids) == 2
+        assert all(isinstance(id_obj, ID) for id_obj in ids)
+        assert ids[0].id == "sensor1"
+        assert ids[1].id == "sensor2"
+
+    def test_lambda__no_ids(self):
+        """Test Lambda with no id() references."""
+        from esphome.core import Lambda
+
+        lambda_obj = Lambda("return 42;")
+        ids = lambda_obj.requires_ids
+
+        assert len(ids) == 0
+
+    def test_lambda__comment_removal(self):
+        """Test that comments are removed when parsing parts."""
+        from esphome.core import Lambda
+
+        lambda_obj = Lambda("return id(sensor).state; // Get sensor state")
+        parts = lambda_obj.parts
+
+        # Comment should be replaced with space, not affect parsing
+        assert "my_sensor" not in str(parts)
+
+    def test_lambda__multiline_string(self):
+        """Test Lambda with multiline string."""
+        from esphome.core import Lambda
+
+        code = """if (id(sensor).state > 0) {
+  return true;
+}
+return false;"""
+        lambda_obj = Lambda(code)
+
+        assert lambda_obj.value == code
+        assert "sensor" in [id_obj.id for id_obj in lambda_obj.requires_ids]
+
+
+@pytest.mark.asyncio
+class TestProcessLambda:
+    """Tests for the process_lambda() async function."""
+
+    async def test_process_lambda__none_value(self):
+        """Test that None returns None."""
+        result = await cg.process_lambda(None, [])
+
+        assert result is None
+
+    async def test_process_lambda__with_expression(self):
+        """Test process_lambda with Expression argument."""
+
+        expr = cg.RawExpression("return x + 1")
+        result = await cg.process_lambda(expr, [(int, "x")])
+
+        assert isinstance(result, cg.LambdaExpression)
+        assert "x + 1" in str(result)
+
+    async def test_process_lambda__simple_lambda_no_ids(self):
+        """Test process_lambda with simple Lambda without id() references."""
+        from esphome.core import Lambda
+
+        lambda_obj = Lambda("return x + 1;")
+        result = await cg.process_lambda(lambda_obj, [(int, "x")])
+
+        assert isinstance(result, cg.LambdaExpression)
+        # Should have parameter
+        lambda_str = str(result)
+        assert "int32_t x" in lambda_str
+        assert "return x + 1;" in lambda_str
+
+    async def test_process_lambda__with_return_type(self):
+        """Test process_lambda with return type specified."""
+        from esphome.core import Lambda
+
+        lambda_obj = Lambda("return x > 0;")
+        result = await cg.process_lambda(lambda_obj, [(int, "x")], return_type=bool)
+
+        assert isinstance(result, cg.LambdaExpression)
+        lambda_str = str(result)
+        assert "-> bool" in lambda_str
+
+    async def test_process_lambda__with_capture(self):
+        """Test process_lambda with capture specified."""
+        from esphome.core import Lambda
+
+        lambda_obj = Lambda("return captured + x;")
+        result = await cg.process_lambda(lambda_obj, [(int, "x")], capture="captured")
+
+        assert isinstance(result, cg.LambdaExpression)
+        lambda_str = str(result)
+        assert "[captured]" in lambda_str
+
+    async def test_process_lambda__empty_capture(self):
+        """Test process_lambda with empty capture (stateless lambda)."""
+        from esphome.core import Lambda
+
+        lambda_obj = Lambda("return x + 1;")
+        result = await cg.process_lambda(lambda_obj, [(int, "x")], capture="")
+
+        assert isinstance(result, cg.LambdaExpression)
+        lambda_str = str(result)
+        assert "[]" in lambda_str
+
+    async def test_process_lambda__no_parameters(self):
+        """Test process_lambda with no parameters."""
+        from esphome.core import Lambda
+
+        lambda_obj = Lambda("return 42;")
+        result = await cg.process_lambda(lambda_obj, [])
+
+        assert isinstance(result, cg.LambdaExpression)
+        lambda_str = str(result)
+        # Should have empty parameter list
+        assert "()" in lambda_str
+
+    async def test_process_lambda__multiple_parameters(self):
+        """Test process_lambda with multiple parameters."""
+        from esphome.core import Lambda
+
+        lambda_obj = Lambda("return x + y + z;")
+        result = await cg.process_lambda(
+            lambda_obj, [(int, "x"), (float, "y"), (bool, "z")]
+        )
+
+        assert isinstance(result, cg.LambdaExpression)
+        lambda_str = str(result)
+        assert "int32_t x" in lambda_str
+        assert "float y" in lambda_str
+        assert "bool z" in lambda_str
+
+    async def test_process_lambda__parameter_validation(self):
+        """Test that malformed parameters raise assertion error."""
+        from esphome.core import Lambda
+
+        lambda_obj = Lambda("return x;")
+
+        # Test invalid parameter format (not list of tuples)
+        with pytest.raises(AssertionError):
+            await cg.process_lambda(lambda_obj, "invalid")
+
+        # Test invalid tuple format (not 2-element tuples)
+        with pytest.raises(AssertionError):
+            await cg.process_lambda(lambda_obj, [(int, "x", "extra")])
+
+        # Test invalid tuple format (single element)
+        with pytest.raises(AssertionError):
+            await cg.process_lambda(lambda_obj, [(int,)])