diff --git a/esphome/components/template/select/__init__.py b/esphome/components/template/select/__init__.py
index 93aa2c8b05..0e9c240547 100644
--- a/esphome/components/template/select/__init__.py
+++ b/esphome/components/template/select/__init__.py
@@ -73,15 +73,18 @@ async def to_code(config):
         cg.add(var.set_template(template_))
 
     else:
-        cg.add(var.set_optimistic(config[CONF_OPTIMISTIC]))
+        # Only set if non-default to avoid bloating setup() function
+        if config[CONF_OPTIMISTIC]:
+            cg.add(var.set_optimistic(True))
         initial_option_index = config[CONF_OPTIONS].index(config[CONF_INITIAL_OPTION])
         # Only set if non-zero to avoid bloating setup() function
         # (initial_option_index_ is zero-initialized in the header)
         if initial_option_index != 0:
             cg.add(var.set_initial_option_index(initial_option_index))
 
-        if CONF_RESTORE_VALUE in config:
-            cg.add(var.set_restore_value(config[CONF_RESTORE_VALUE]))
+        # Only set if True (default is False)
+        if config.get(CONF_RESTORE_VALUE):
+            cg.add(var.set_restore_value(True))
 
     if CONF_SET_ACTION in config:
         await automation.build_automation(