diff --git a/esphome/components/esp32/__init__.py b/esphome/components/esp32/__init__.py
index b7dd25e0d8..e5725200a6 100644
--- a/esphome/components/esp32/__init__.py
+++ b/esphome/components/esp32/__init__.py
@@ -805,6 +805,7 @@ async def to_code(config):
         add_idf_sdkconfig_option("CONFIG_AUTOSTART_ARDUINO", True)
         add_idf_sdkconfig_option("CONFIG_MBEDTLS_PSK_MODES", True)
         add_idf_sdkconfig_option("CONFIG_MBEDTLS_CERTIFICATE_BUNDLE", True)
+        add_idf_sdkconfig_option("CONFIG_ESP_PHY_REDUCE_TX_POWER", True)
 
     cg.add_build_flag("-Wno-nonnull-compare")
 
diff --git a/esphome/core/__init__.py b/esphome/core/__init__.py
index 43febd28a2..2d49d29c5e 100644
--- a/esphome/core/__init__.py
+++ b/esphome/core/__init__.py
@@ -11,6 +11,7 @@ from esphome.const import (
     CONF_COMMENT,
     CONF_ESPHOME,
     CONF_ETHERNET,
+    CONF_OPENTHREAD,
     CONF_PORT,
     CONF_USE_ADDRESS,
     CONF_WEB_SERVER,
@@ -641,6 +642,9 @@ class EsphomeCore:
         if CONF_ETHERNET in self.config:
             return self.config[CONF_ETHERNET][CONF_USE_ADDRESS]
 
+        if CONF_OPENTHREAD in self.config:
+            return f"{self.name}.local"
+
         return None
 
     @property
diff --git a/tests/unit_tests/test_core.py b/tests/unit_tests/test_core.py
index 48eae06ea6..41114ae18b 100644
--- a/tests/unit_tests/test_core.py
+++ b/tests/unit_tests/test_core.py
@@ -570,6 +570,13 @@ class TestEsphomeCore:
 
         assert target.address == "4.3.2.1"
 
+    def test_address__openthread(self, target):
+        target.name = "test-device"
+        target.config = {}
+        target.config[const.CONF_OPENTHREAD] = {}
+
+        assert target.address == "test-device.local"
+
     def test_is_esp32(self, target):
         target.data[const.KEY_CORE] = {const.KEY_TARGET_PLATFORM: "esp32"}