diff --git a/CODEOWNERS b/CODEOWNERS
index dc567ca5c0..e91116795a 100644
--- a/CODEOWNERS
+++ b/CODEOWNERS
@@ -548,3 +548,4 @@ esphome/components/xxtea/* @clydebarrow
 esphome/components/zephyr/* @tomaszduda23
 esphome/components/zhlt01/* @cfeenstra1024
 esphome/components/zio_ultrasonic/* @kahrendt
+esphome/components/zwave_proxy/* @kbx81
diff --git a/esphome/components/api/api.proto b/esphome/components/api/api.proto
index 37e4c16bfc..fa64649df5 100644
--- a/esphome/components/api/api.proto
+++ b/esphome/components/api/api.proto
@@ -66,6 +66,9 @@ service APIConnection {
   rpc voice_assistant_set_configuration(VoiceAssistantSetConfiguration) returns (void) {}
 
   rpc alarm_control_panel_command (AlarmControlPanelCommandRequest) returns (void) {}
+
+  rpc zwave_proxy_frame(ZWaveProxyFrame) returns (void) {}
+  rpc zwave_proxy_request(ZWaveProxyRequest) returns (void) {}
 }
 
 
@@ -254,6 +257,9 @@ message DeviceInfoResponse {
 
   // Top-level area info to phase out suggested_area
   AreaInfo area = 22 [(field_ifdef) = "USE_AREAS"];
+
+  // Indicates if Z-Wave proxy support is available and features supported
+  uint32 zwave_proxy_feature_flags = 23 [(field_ifdef) = "USE_ZWAVE_PROXY"];
 }
 
 message ListEntitiesRequest {
@@ -2276,3 +2282,26 @@ message UpdateCommandRequest {
   UpdateCommand command = 2;
   uint32 device_id = 3 [(field_ifdef) = "USE_DEVICES"];
 }
+
+// ==================== Z-WAVE ====================
+
+message ZWaveProxyFrame {
+  option (id) = 128;
+  option (source) = SOURCE_BOTH;
+  option (ifdef) = "USE_ZWAVE_PROXY";
+  option (no_delay) = true;
+
+  bytes data = 1 [(fixed_array_size) = 257];
+}
+
+enum ZWaveProxyRequestType {
+  ZWAVE_PROXY_REQUEST_TYPE_SUBSCRIBE = 0;
+  ZWAVE_PROXY_REQUEST_TYPE_UNSUBSCRIBE = 1;
+}
+message ZWaveProxyRequest {
+  option (id) = 129;
+  option (source) = SOURCE_CLIENT;
+  option (ifdef) = "USE_ZWAVE_PROXY";
+
+  ZWaveProxyRequestType type = 1;
+}
diff --git a/esphome/components/api/api_connection.cpp b/esphome/components/api/api_connection.cpp
index dfcab4bda6..697b02b915 100644
--- a/esphome/components/api/api_connection.cpp
+++ b/esphome/components/api/api_connection.cpp
@@ -30,6 +30,9 @@
 #ifdef USE_VOICE_ASSISTANT
 #include "esphome/components/voice_assistant/voice_assistant.h"
 #endif
+#ifdef USE_ZWAVE_PROXY
+#include "esphome/components/zwave_proxy/zwave_proxy.h"
+#endif
 
 namespace esphome::api {
 
@@ -1203,7 +1206,16 @@ void APIConnection::voice_assistant_set_configuration(const VoiceAssistantSetCon
     voice_assistant::global_voice_assistant->on_set_configuration(msg.active_wake_words);
   }
 }
+#endif
 
+#ifdef USE_ZWAVE_PROXY
+void APIConnection::zwave_proxy_frame(const ZWaveProxyFrame &msg) {
+  zwave_proxy::global_zwave_proxy->send_frame(msg.data, msg.data_len);
+}
+
+void APIConnection::zwave_proxy_request(const ZWaveProxyRequest &msg) {
+  zwave_proxy::global_zwave_proxy->zwave_proxy_request(this, msg.type);
+}
 #endif
 
 #ifdef USE_ALARM_CONTROL_PANEL
@@ -1460,6 +1472,9 @@ bool APIConnection::send_device_info_response(const DeviceInfoRequest &msg) {
 #ifdef USE_VOICE_ASSISTANT
   resp.voice_assistant_feature_flags = voice_assistant::global_voice_assistant->get_feature_flags();
 #endif
+#ifdef USE_ZWAVE_PROXY
+  resp.zwave_proxy_feature_flags = zwave_proxy::global_zwave_proxy->get_feature_flags();
+#endif
 #ifdef USE_API_NOISE
   resp.api_encryption_supported = true;
 #endif
diff --git a/esphome/components/api/api_connection.h b/esphome/components/api/api_connection.h
index 7d50aa4591..380894a4ff 100644
--- a/esphome/components/api/api_connection.h
+++ b/esphome/components/api/api_connection.h
@@ -171,6 +171,11 @@ class APIConnection final : public APIServerConnection {
   void voice_assistant_set_configuration(const VoiceAssistantSetConfiguration &msg) override;
 #endif
 
+#ifdef USE_ZWAVE_PROXY
+  void zwave_proxy_frame(const ZWaveProxyFrame &msg) override;
+  void zwave_proxy_request(const ZWaveProxyRequest &msg) override;
+#endif
+
 #ifdef USE_ALARM_CONTROL_PANEL
   bool send_alarm_control_panel_state(alarm_control_panel::AlarmControlPanel *a_alarm_control_panel);
   void alarm_control_panel_command(const AlarmControlPanelCommandRequest &msg) override;
diff --git a/esphome/components/api/api_pb2.cpp b/esphome/components/api/api_pb2.cpp
index 4f2130466a..58a083ad06 100644
--- a/esphome/components/api/api_pb2.cpp
+++ b/esphome/components/api/api_pb2.cpp
@@ -129,6 +129,9 @@ void DeviceInfoResponse::encode(ProtoWriteBuffer buffer) const {
 #ifdef USE_AREAS
   buffer.encode_message(22, this->area);
 #endif
+#ifdef USE_ZWAVE_PROXY
+  buffer.encode_uint32(23, this->zwave_proxy_feature_flags);
+#endif
 }
 void DeviceInfoResponse::calculate_size(ProtoSize &size) const {
 #ifdef USE_API_PASSWORD
@@ -181,6 +184,9 @@ void DeviceInfoResponse::calculate_size(ProtoSize &size) const {
 #ifdef USE_AREAS
   size.add_message_object(2, this->area);
 #endif
+#ifdef USE_ZWAVE_PROXY
+  size.add_uint32(2, this->zwave_proxy_feature_flags);
+#endif
 }
 #ifdef USE_BINARY_SENSOR
 void ListEntitiesBinarySensorResponse::encode(ProtoWriteBuffer buffer) const {
@@ -3013,5 +3019,35 @@ bool UpdateCommandRequest::decode_32bit(uint32_t field_id, Proto32Bit value) {
   return true;
 }
 #endif
+#ifdef USE_ZWAVE_PROXY
+bool ZWaveProxyFrame::decode_length(uint32_t field_id, ProtoLengthDelimited value) {
+  switch (field_id) {
+    case 1: {
+      const std::string &data_str = value.as_string();
+      this->data_len = data_str.size();
+      if (this->data_len > 257) {
+        this->data_len = 257;
+      }
+      memcpy(this->data, data_str.data(), this->data_len);
+      break;
+    }
+    default:
+      return false;
+  }
+  return true;
+}
+void ZWaveProxyFrame::encode(ProtoWriteBuffer buffer) const { buffer.encode_bytes(1, this->data, this->data_len); }
+void ZWaveProxyFrame::calculate_size(ProtoSize &size) const { size.add_length(1, this->data_len); }
+bool ZWaveProxyRequest::decode_varint(uint32_t field_id, ProtoVarInt value) {
+  switch (field_id) {
+    case 1:
+      this->type = static_cast<enums::ZWaveProxyRequestType>(value.as_uint32());
+      break;
+    default:
+      return false;
+  }
+  return true;
+}
+#endif
 
 }  // namespace esphome::api
diff --git a/esphome/components/api/api_pb2.h b/esphome/components/api/api_pb2.h
index e68fce75aa..d52cb9eab3 100644
--- a/esphome/components/api/api_pb2.h
+++ b/esphome/components/api/api_pb2.h
@@ -276,6 +276,12 @@ enum UpdateCommand : uint32_t {
   UPDATE_COMMAND_CHECK = 2,
 };
 #endif
+#ifdef USE_ZWAVE_PROXY
+enum ZWaveProxyRequestType : uint32_t {
+  ZWAVE_PROXY_REQUEST_TYPE_SUBSCRIBE = 0,
+  ZWAVE_PROXY_REQUEST_TYPE_UNSUBSCRIBE = 1,
+};
+#endif
 
 }  // namespace enums
 
@@ -492,7 +498,7 @@ class DeviceInfo final : public ProtoMessage {
 class DeviceInfoResponse final : public ProtoMessage {
  public:
   static constexpr uint8_t MESSAGE_TYPE = 10;
-  static constexpr uint8_t ESTIMATED_SIZE = 247;
+  static constexpr uint8_t ESTIMATED_SIZE = 252;
 #ifdef HAS_PROTO_MESSAGE_DUMP
   const char *message_name() const override { return "device_info_response"; }
 #endif
@@ -552,6 +558,9 @@ class DeviceInfoResponse final : public ProtoMessage {
 #endif
 #ifdef USE_AREAS
   AreaInfo area{};
+#endif
+#ifdef USE_ZWAVE_PROXY
+  uint32_t zwave_proxy_feature_flags{0};
 #endif
   void encode(ProtoWriteBuffer buffer) const override;
   void calculate_size(ProtoSize &size) const override;
@@ -2913,5 +2922,40 @@ class UpdateCommandRequest final : public CommandProtoMessage {
   bool decode_varint(uint32_t field_id, ProtoVarInt value) override;
 };
 #endif
+#ifdef USE_ZWAVE_PROXY
+class ZWaveProxyFrame final : public ProtoDecodableMessage {
+ public:
+  static constexpr uint8_t MESSAGE_TYPE = 128;
+  static constexpr uint8_t ESTIMATED_SIZE = 33;
+#ifdef HAS_PROTO_MESSAGE_DUMP
+  const char *message_name() const override { return "z_wave_proxy_frame"; }
+#endif
+  uint8_t data[257]{};
+  uint16_t data_len{0};
+  void encode(ProtoWriteBuffer buffer) const override;
+  void calculate_size(ProtoSize &size) const override;
+#ifdef HAS_PROTO_MESSAGE_DUMP
+  void dump_to(std::string &out) const override;
+#endif
+
+ protected:
+  bool decode_length(uint32_t field_id, ProtoLengthDelimited value) override;
+};
+class ZWaveProxyRequest final : public ProtoDecodableMessage {
+ public:
+  static constexpr uint8_t MESSAGE_TYPE = 129;
+  static constexpr uint8_t ESTIMATED_SIZE = 2;
+#ifdef HAS_PROTO_MESSAGE_DUMP
+  const char *message_name() const override { return "z_wave_proxy_request"; }
+#endif
+  enums::ZWaveProxyRequestType type{};
+#ifdef HAS_PROTO_MESSAGE_DUMP
+  void dump_to(std::string &out) const override;
+#endif
+
+ protected:
+  bool decode_varint(uint32_t field_id, ProtoVarInt value) override;
+};
+#endif
 
 }  // namespace esphome::api
diff --git a/esphome/components/api/api_pb2_dump.cpp b/esphome/components/api/api_pb2_dump.cpp
index 222aa2b603..d24f9b3fdc 100644
--- a/esphome/components/api/api_pb2_dump.cpp
+++ b/esphome/components/api/api_pb2_dump.cpp
@@ -655,6 +655,18 @@ template<> const char *proto_enum_to_string<enums::UpdateCommand>(enums::UpdateC
   }
 }
 #endif
+#ifdef USE_ZWAVE_PROXY
+template<> const char *proto_enum_to_string<enums::ZWaveProxyRequestType>(enums::ZWaveProxyRequestType value) {
+  switch (value) {
+    case enums::ZWAVE_PROXY_REQUEST_TYPE_SUBSCRIBE:
+      return "ZWAVE_PROXY_REQUEST_TYPE_SUBSCRIBE";
+    case enums::ZWAVE_PROXY_REQUEST_TYPE_UNSUBSCRIBE:
+      return "ZWAVE_PROXY_REQUEST_TYPE_UNSUBSCRIBE";
+    default:
+      return "UNKNOWN";
+  }
+}
+#endif
 
 void HelloRequest::dump_to(std::string &out) const {
   MessageDumpHelper helper(out, "HelloRequest");
@@ -754,6 +766,9 @@ void DeviceInfoResponse::dump_to(std::string &out) const {
   this->area.dump_to(out);
   out.append("\n");
 #endif
+#ifdef USE_ZWAVE_PROXY
+  dump_field(out, "zwave_proxy_feature_flags", this->zwave_proxy_feature_flags);
+#endif
 }
 void ListEntitiesRequest::dump_to(std::string &out) const { out.append("ListEntitiesRequest {}"); }
 void ListEntitiesDoneResponse::dump_to(std::string &out) const { out.append("ListEntitiesDoneResponse {}"); }
@@ -2107,6 +2122,18 @@ void UpdateCommandRequest::dump_to(std::string &out) const {
 #endif
 }
 #endif
+#ifdef USE_ZWAVE_PROXY
+void ZWaveProxyFrame::dump_to(std::string &out) const {
+  MessageDumpHelper helper(out, "ZWaveProxyFrame");
+  out.append("  data: ");
+  out.append(format_hex_pretty(this->data, this->data_len));
+  out.append("\n");
+}
+void ZWaveProxyRequest::dump_to(std::string &out) const {
+  MessageDumpHelper helper(out, "ZWaveProxyRequest");
+  dump_field(out, "type", static_cast<enums::ZWaveProxyRequestType>(this->type));
+}
+#endif
 
 }  // namespace esphome::api
 
diff --git a/esphome/components/api/api_pb2_service.cpp b/esphome/components/api/api_pb2_service.cpp
index ef7acbc6b2..4afc66dc44 100644
--- a/esphome/components/api/api_pb2_service.cpp
+++ b/esphome/components/api/api_pb2_service.cpp
@@ -588,6 +588,28 @@ void APIServerConnectionBase::read_message(uint32_t msg_size, uint32_t msg_type,
       this->on_bluetooth_scanner_set_mode_request(msg);
       break;
     }
+#endif
+#ifdef USE_ZWAVE_PROXY
+    case ZWaveProxyFrame::MESSAGE_TYPE: {
+      ZWaveProxyFrame msg;
+      msg.decode(msg_data, msg_size);
+#ifdef HAS_PROTO_MESSAGE_DUMP
+      ESP_LOGVV(TAG, "on_z_wave_proxy_frame: %s", msg.dump().c_str());
+#endif
+      this->on_z_wave_proxy_frame(msg);
+      break;
+    }
+#endif
+#ifdef USE_ZWAVE_PROXY
+    case ZWaveProxyRequest::MESSAGE_TYPE: {
+      ZWaveProxyRequest msg;
+      msg.decode(msg_data, msg_size);
+#ifdef HAS_PROTO_MESSAGE_DUMP
+      ESP_LOGVV(TAG, "on_z_wave_proxy_request: %s", msg.dump().c_str());
+#endif
+      this->on_z_wave_proxy_request(msg);
+      break;
+    }
 #endif
     default:
       break;
@@ -899,5 +921,19 @@ void APIServerConnection::on_alarm_control_panel_command_request(const AlarmCont
   }
 }
 #endif
+#ifdef USE_ZWAVE_PROXY
+void APIServerConnection::on_z_wave_proxy_frame(const ZWaveProxyFrame &msg) {
+  if (this->check_authenticated_()) {
+    this->zwave_proxy_frame(msg);
+  }
+}
+#endif
+#ifdef USE_ZWAVE_PROXY
+void APIServerConnection::on_z_wave_proxy_request(const ZWaveProxyRequest &msg) {
+  if (this->check_authenticated_()) {
+    this->zwave_proxy_request(msg);
+  }
+}
+#endif
 
 }  // namespace esphome::api
diff --git a/esphome/components/api/api_pb2_service.h b/esphome/components/api/api_pb2_service.h
index f81ac1a337..9379dfee7d 100644
--- a/esphome/components/api/api_pb2_service.h
+++ b/esphome/components/api/api_pb2_service.h
@@ -207,6 +207,12 @@ class APIServerConnectionBase : public ProtoService {
 
 #ifdef USE_UPDATE
   virtual void on_update_command_request(const UpdateCommandRequest &value){};
+#endif
+#ifdef USE_ZWAVE_PROXY
+  virtual void on_z_wave_proxy_frame(const ZWaveProxyFrame &value){};
+#endif
+#ifdef USE_ZWAVE_PROXY
+  virtual void on_z_wave_proxy_request(const ZWaveProxyRequest &value){};
 #endif
  protected:
   void read_message(uint32_t msg_size, uint32_t msg_type, uint8_t *msg_data) override;
@@ -335,6 +341,12 @@ class APIServerConnection : public APIServerConnectionBase {
 #endif
 #ifdef USE_ALARM_CONTROL_PANEL
   virtual void alarm_control_panel_command(const AlarmControlPanelCommandRequest &msg) = 0;
+#endif
+#ifdef USE_ZWAVE_PROXY
+  virtual void zwave_proxy_frame(const ZWaveProxyFrame &msg) = 0;
+#endif
+#ifdef USE_ZWAVE_PROXY
+  virtual void zwave_proxy_request(const ZWaveProxyRequest &msg) = 0;
 #endif
  protected:
   void on_hello_request(const HelloRequest &msg) override;
@@ -459,6 +471,12 @@ class APIServerConnection : public APIServerConnectionBase {
 #ifdef USE_ALARM_CONTROL_PANEL
   void on_alarm_control_panel_command_request(const AlarmControlPanelCommandRequest &msg) override;
 #endif
+#ifdef USE_ZWAVE_PROXY
+  void on_z_wave_proxy_frame(const ZWaveProxyFrame &msg) override;
+#endif
+#ifdef USE_ZWAVE_PROXY
+  void on_z_wave_proxy_request(const ZWaveProxyRequest &msg) override;
+#endif
 };
 
 }  // namespace esphome::api
diff --git a/esphome/components/zwave_proxy/__init__.py b/esphome/components/zwave_proxy/__init__.py
new file mode 100644
index 0000000000..d88f9f7041
--- /dev/null
+++ b/esphome/components/zwave_proxy/__init__.py
@@ -0,0 +1,43 @@
+import esphome.codegen as cg
+from esphome.components import uart
+import esphome.config_validation as cv
+from esphome.const import CONF_ID, CONF_POWER_SAVE_MODE, CONF_WIFI
+import esphome.final_validate as fv
+
+CODEOWNERS = ["@kbx81"]
+DEPENDENCIES = ["api", "uart"]
+
+zwave_proxy_ns = cg.esphome_ns.namespace("zwave_proxy")
+ZWaveProxy = zwave_proxy_ns.class_("ZWaveProxy", cg.Component, uart.UARTDevice)
+
+
+def final_validate(config):
+    full_config = fv.full_config.get()
+    if (wifi_conf := full_config.get(CONF_WIFI)) and (
+        wifi_conf.get(CONF_POWER_SAVE_MODE).lower() != "none"
+    ):
+        raise cv.Invalid(
+            f"{CONF_WIFI} {CONF_POWER_SAVE_MODE} must be set to 'none' when using Z-Wave proxy"
+        )
+
+    return config
+
+
+CONFIG_SCHEMA = (
+    cv.Schema(
+        {
+            cv.GenerateID(): cv.declare_id(ZWaveProxy),
+        }
+    )
+    .extend(cv.COMPONENT_SCHEMA)
+    .extend(uart.UART_DEVICE_SCHEMA)
+)
+
+FINAL_VALIDATE_SCHEMA = final_validate
+
+
+async def to_code(config):
+    var = cg.new_Pvariable(config[CONF_ID])
+    await cg.register_component(var, config)
+    await uart.register_uart_device(var, config)
+    cg.add_define("USE_ZWAVE_PROXY")
diff --git a/esphome/components/zwave_proxy/zwave_proxy.cpp b/esphome/components/zwave_proxy/zwave_proxy.cpp
new file mode 100644
index 0000000000..e39f857743
--- /dev/null
+++ b/esphome/components/zwave_proxy/zwave_proxy.cpp
@@ -0,0 +1,224 @@
+#include "zwave_proxy.h"
+#include "esphome/core/helpers.h"
+#include "esphome/core/log.h"
+#include "esphome/core/util.h"
+
+namespace esphome {
+namespace zwave_proxy {
+
+static const char *const TAG = "zwave_proxy";
+
+ZWaveProxy::ZWaveProxy() { global_zwave_proxy = this; }
+
+void ZWaveProxy::loop() {
+  if (this->response_handler_()) {
+    ESP_LOGV(TAG, "Handled late response");
+  }
+  if (this->api_connection_ != nullptr && (!this->api_connection_->is_connection_setup() || !api_is_connected())) {
+    ESP_LOGW(TAG, "Subscriber disconnected");
+    this->api_connection_ = nullptr;  // Unsubscribe if disconnected
+  }
+
+  while (this->available()) {
+    uint8_t byte;
+    if (!this->read_byte(&byte)) {
+      this->status_set_warning("UART read failed");
+      return;
+    }
+    if (this->parse_byte_(byte)) {
+      ESP_LOGV(TAG, "Sending to client: %s", YESNO(this->api_connection_ != nullptr));
+      if (this->api_connection_ != nullptr) {
+        // minimize copying to reduce CPU overhead
+        if (this->in_bootloader_) {
+          this->outgoing_proto_msg_.data_len = this->buffer_index_;
+        } else {
+          // If this is a data frame, use frame length indicator + 2 (for SoF + checksum), else assume 1 for ACK/NAK/CAN
+          this->outgoing_proto_msg_.data_len = this->buffer_[0] == ZWAVE_FRAME_TYPE_START ? this->buffer_[1] + 2 : 1;
+        }
+        std::memcpy(this->outgoing_proto_msg_.data, this->buffer_, this->outgoing_proto_msg_.data_len);
+        this->api_connection_->send_message(this->outgoing_proto_msg_, api::ZWaveProxyFrame::MESSAGE_TYPE);
+      }
+    }
+  }
+  this->status_clear_warning();
+}
+
+void ZWaveProxy::dump_config() { ESP_LOGCONFIG(TAG, "Z-Wave Proxy"); }
+
+void ZWaveProxy::zwave_proxy_request(api::APIConnection *api_connection, api::enums::ZWaveProxyRequestType type) {
+  switch (type) {
+    case api::enums::ZWAVE_PROXY_REQUEST_TYPE_SUBSCRIBE:
+      if (this->api_connection_ != nullptr) {
+        ESP_LOGE(TAG, "Only one API subscription is allowed at a time");
+        return;
+      }
+      this->api_connection_ = api_connection;
+      ESP_LOGV(TAG, "API connection is now subscribed");
+      break;
+    case api::enums::ZWAVE_PROXY_REQUEST_TYPE_UNSUBSCRIBE:
+      if (this->api_connection_ != api_connection) {
+        ESP_LOGV(TAG, "API connection is not subscribed");
+        return;
+      }
+      this->api_connection_ = nullptr;
+      break;
+    default:
+      ESP_LOGW(TAG, "Unknown request type: %d", type);
+      break;
+  }
+}
+
+void ZWaveProxy::send_frame(const uint8_t *data, size_t length) {
+  if (length == 1 && data[0] == this->last_response_) {
+    ESP_LOGV(TAG, "Skipping sending duplicate response: 0x%02X", data[0]);
+    return;
+  }
+  ESP_LOGVV(TAG, "Sending: %s", format_hex_pretty(data, length).c_str());
+  this->write_array(data, length);
+}
+
+bool ZWaveProxy::parse_byte_(uint8_t byte) {
+  bool frame_completed = false;
+  // Basic parsing logic for received frames
+  switch (this->parsing_state_) {
+    case ZWAVE_PARSING_STATE_WAIT_START:
+      this->parse_start_(byte);
+      break;
+    case ZWAVE_PARSING_STATE_WAIT_LENGTH:
+      if (!byte) {
+        ESP_LOGW(TAG, "Invalid LENGTH: %u", byte);
+        this->parsing_state_ = ZWAVE_PARSING_STATE_SEND_NAK;
+        return false;
+      }
+      ESP_LOGVV(TAG, "Received LENGTH: %u", byte);
+      this->end_frame_after_ = this->buffer_index_ + byte;
+      ESP_LOGVV(TAG, "Calculated EOF: %u", this->end_frame_after_);
+      this->buffer_[this->buffer_index_++] = byte;
+      this->checksum_ ^= byte;
+      this->parsing_state_ = ZWAVE_PARSING_STATE_WAIT_TYPE;
+      break;
+    case ZWAVE_PARSING_STATE_WAIT_TYPE:
+      this->buffer_[this->buffer_index_++] = byte;
+      ESP_LOGVV(TAG, "Received TYPE: 0x%02X", byte);
+      this->checksum_ ^= byte;
+      this->parsing_state_ = ZWAVE_PARSING_STATE_WAIT_COMMAND_ID;
+      break;
+    case ZWAVE_PARSING_STATE_WAIT_COMMAND_ID:
+      this->buffer_[this->buffer_index_++] = byte;
+      ESP_LOGVV(TAG, "Received COMMAND ID: 0x%02X", byte);
+      this->checksum_ ^= byte;
+      this->parsing_state_ = ZWAVE_PARSING_STATE_WAIT_PAYLOAD;
+      break;
+    case ZWAVE_PARSING_STATE_WAIT_PAYLOAD:
+      this->buffer_[this->buffer_index_++] = byte;
+      this->checksum_ ^= byte;
+      ESP_LOGVV(TAG, "Received PAYLOAD: 0x%02X", byte);
+      if (this->buffer_index_ >= this->end_frame_after_) {
+        this->parsing_state_ = ZWAVE_PARSING_STATE_WAIT_CHECKSUM;
+      }
+      break;
+    case ZWAVE_PARSING_STATE_WAIT_CHECKSUM:
+      this->buffer_[this->buffer_index_++] = byte;
+      ESP_LOGVV(TAG, "Received CHECKSUM: 0x%02X", byte);
+      ESP_LOGV(TAG, "Calculated CHECKSUM: 0x%02X", this->checksum_);
+      if (this->checksum_ != byte) {
+        ESP_LOGW(TAG, "Bad checksum: expected 0x%02X, got 0x%02X", this->checksum_, byte);
+        this->parsing_state_ = ZWAVE_PARSING_STATE_SEND_NAK;
+      } else {
+        this->parsing_state_ = ZWAVE_PARSING_STATE_SEND_ACK;
+        ESP_LOGVV(TAG, "Received frame: %s", format_hex_pretty(this->buffer_, this->buffer_index_).c_str());
+        frame_completed = true;
+      }
+      this->response_handler_();
+      break;
+    case ZWAVE_PARSING_STATE_READ_BL_MENU:
+      this->buffer_[this->buffer_index_++] = byte;
+      if (!byte) {
+        this->parsing_state_ = ZWAVE_PARSING_STATE_WAIT_START;
+        frame_completed = true;
+      }
+      break;
+    case ZWAVE_PARSING_STATE_SEND_ACK:
+    case ZWAVE_PARSING_STATE_SEND_NAK:
+      break;  // Should not happen, handled in loop()
+    default:
+      ESP_LOGW(TAG, "Bad parsing state; resetting");
+      this->parsing_state_ = ZWAVE_PARSING_STATE_WAIT_START;
+      break;
+  }
+  return frame_completed;
+}
+
+void ZWaveProxy::parse_start_(uint8_t byte) {
+  this->buffer_index_ = 0;
+  this->checksum_ = 0xFF;
+  this->parsing_state_ = ZWAVE_PARSING_STATE_WAIT_START;
+  switch (byte) {
+    case ZWAVE_FRAME_TYPE_START:
+      ESP_LOGVV(TAG, "Received START");
+      if (this->in_bootloader_) {
+        ESP_LOGD(TAG, "Exited bootloader mode");
+        this->in_bootloader_ = false;
+      }
+      this->buffer_[this->buffer_index_++] = byte;
+      this->parsing_state_ = ZWAVE_PARSING_STATE_WAIT_LENGTH;
+      return;
+    case ZWAVE_FRAME_TYPE_BL_MENU:
+      ESP_LOGVV(TAG, "Received BL_MENU");
+      if (!this->in_bootloader_) {
+        ESP_LOGD(TAG, "Entered bootloader mode");
+        this->in_bootloader_ = true;
+      }
+      this->buffer_[this->buffer_index_++] = byte;
+      this->parsing_state_ = ZWAVE_PARSING_STATE_READ_BL_MENU;
+      return;
+    case ZWAVE_FRAME_TYPE_BL_BEGIN_UPLOAD:
+      ESP_LOGVV(TAG, "Received BL_BEGIN_UPLOAD");
+      break;
+    case ZWAVE_FRAME_TYPE_ACK:
+      ESP_LOGVV(TAG, "Received ACK");
+      break;
+    case ZWAVE_FRAME_TYPE_NAK:
+      ESP_LOGW(TAG, "Received NAK");
+      break;
+    case ZWAVE_FRAME_TYPE_CAN:
+      ESP_LOGW(TAG, "Received CAN");
+      break;
+    default:
+      ESP_LOGW(TAG, "Unrecognized START: 0x%02X", byte);
+      return;
+  }
+  // Forward response (ACK/NAK/CAN) back to client for processing
+  if (this->api_connection_ != nullptr) {
+    this->outgoing_proto_msg_.data[0] = byte;
+    this->outgoing_proto_msg_.data_len = 1;
+    this->api_connection_->send_message(this->outgoing_proto_msg_, api::ZWaveProxyFrame::MESSAGE_TYPE);
+  }
+}
+
+bool ZWaveProxy::response_handler_() {
+  switch (this->parsing_state_) {
+    case ZWAVE_PARSING_STATE_SEND_ACK:
+      this->last_response_ = ZWAVE_FRAME_TYPE_ACK;
+      break;
+    case ZWAVE_PARSING_STATE_SEND_CAN:
+      this->last_response_ = ZWAVE_FRAME_TYPE_CAN;
+      break;
+    case ZWAVE_PARSING_STATE_SEND_NAK:
+      this->last_response_ = ZWAVE_FRAME_TYPE_NAK;
+      break;
+    default:
+      return false;  // No response handled
+  }
+
+  ESP_LOGVV(TAG, "Sending %s (0x%02X)", this->last_response_ == ZWAVE_FRAME_TYPE_ACK ? "ACK" : "NAK/CAN",
+            this->last_response_);
+  this->write_byte(this->last_response_);
+  this->parsing_state_ = ZWAVE_PARSING_STATE_WAIT_START;
+  return true;
+}
+
+ZWaveProxy *global_zwave_proxy = nullptr;  // NOLINT(cppcoreguidelines-avoid-non-const-global-variables)
+
+}  // namespace zwave_proxy
+}  // namespace esphome
diff --git a/esphome/components/zwave_proxy/zwave_proxy.h b/esphome/components/zwave_proxy/zwave_proxy.h
new file mode 100644
index 0000000000..a0f25849e4
--- /dev/null
+++ b/esphome/components/zwave_proxy/zwave_proxy.h
@@ -0,0 +1,73 @@
+#pragma once
+
+#include "esphome/components/api/api_connection.h"
+#include "esphome/components/api/api_pb2.h"
+#include "esphome/core/component.h"
+#include "esphome/components/uart/uart.h"
+
+namespace esphome {
+namespace zwave_proxy {
+
+enum ZWaveResponseTypes : uint8_t {
+  ZWAVE_FRAME_TYPE_ACK = 0x06,
+  ZWAVE_FRAME_TYPE_CAN = 0x18,
+  ZWAVE_FRAME_TYPE_NAK = 0x15,
+  ZWAVE_FRAME_TYPE_START = 0x01,
+  ZWAVE_FRAME_TYPE_BL_MENU = 0x0D,
+  ZWAVE_FRAME_TYPE_BL_BEGIN_UPLOAD = 0x43,
+};
+
+enum ZWaveParsingState : uint8_t {
+  ZWAVE_PARSING_STATE_WAIT_START,
+  ZWAVE_PARSING_STATE_WAIT_LENGTH,
+  ZWAVE_PARSING_STATE_WAIT_TYPE,
+  ZWAVE_PARSING_STATE_WAIT_COMMAND_ID,
+  ZWAVE_PARSING_STATE_WAIT_PAYLOAD,
+  ZWAVE_PARSING_STATE_WAIT_CHECKSUM,
+  ZWAVE_PARSING_STATE_SEND_ACK,
+  ZWAVE_PARSING_STATE_SEND_CAN,
+  ZWAVE_PARSING_STATE_SEND_NAK,
+  ZWAVE_PARSING_STATE_READ_BL_MENU,
+};
+
+enum ZWaveProxyFeature : uint32_t {
+  FEATURE_ZWAVE_PROXY_ENABLED = 1 << 0,
+};
+
+class ZWaveProxy : public uart::UARTDevice, public Component {
+ public:
+  ZWaveProxy();
+
+  void loop() override;
+  void dump_config() override;
+
+  void zwave_proxy_request(api::APIConnection *api_connection, api::enums::ZWaveProxyRequestType type);
+  api::APIConnection *get_api_connection() { return this->api_connection_; }
+
+  uint32_t get_feature_flags() const { return ZWaveProxyFeature::FEATURE_ZWAVE_PROXY_ENABLED; }
+
+  void send_frame(const uint8_t *data, size_t length);
+
+ protected:
+  bool parse_byte_(uint8_t byte);  // Returns true if frame parsing was completed (a frame is ready in the buffer)
+  void parse_start_(uint8_t byte);
+  bool response_handler_();
+
+  api::APIConnection *api_connection_{nullptr};  // Current subscribed client
+
+  uint8_t buffer_[sizeof(api::ZWaveProxyFrame::data)];  // Fixed buffer for incoming data
+  uint8_t buffer_index_{0};                             // Index for populating the data buffer
+  uint8_t checksum_{0};                                 // Checksum of the frame being parsed
+  uint8_t end_frame_after_{0};                          // Payload reception ends after this index
+  uint8_t last_response_{0};                            // Last response type sent
+  ZWaveParsingState parsing_state_{ZWAVE_PARSING_STATE_WAIT_START};
+  bool in_bootloader_{false};  // True if the device is detected to be in bootloader mode
+
+  // Pre-allocated message - always ready to send
+  api::ZWaveProxyFrame outgoing_proto_msg_;
+};
+
+extern ZWaveProxy *global_zwave_proxy;  // NOLINT(cppcoreguidelines-avoid-non-const-global-variables)
+
+}  // namespace zwave_proxy
+}  // namespace esphome
diff --git a/esphome/core/defines.h b/esphome/core/defines.h
index 6e8d5ed74c..bdc59598f6 100644
--- a/esphome/core/defines.h
+++ b/esphome/core/defines.h
@@ -100,6 +100,7 @@
 #define USE_UART_DEBUGGER
 #define USE_UPDATE
 #define USE_VALVE
+#define USE_ZWAVE_PROXY
 
 // Feature flags which do not work for zephyr
 #ifndef USE_ZEPHYR
diff --git a/tests/components/zwave_proxy/common.yaml b/tests/components/zwave_proxy/common.yaml
new file mode 100644
index 0000000000..08092ebe55
--- /dev/null
+++ b/tests/components/zwave_proxy/common.yaml
@@ -0,0 +1,15 @@
+wifi:
+  ssid: MySSID
+  password: password1
+  power_save_mode: none
+
+uart:
+  - id: uart_zwave_proxy
+    tx_pin: ${tx_pin}
+    rx_pin: ${rx_pin}
+    baud_rate: 115200
+
+api:
+
+zwave_proxy:
+  id: zw_proxy
diff --git a/tests/components/zwave_proxy/test.esp32-ard.yaml b/tests/components/zwave_proxy/test.esp32-ard.yaml
new file mode 100644
index 0000000000..f486544afa
--- /dev/null
+++ b/tests/components/zwave_proxy/test.esp32-ard.yaml
@@ -0,0 +1,5 @@
+substitutions:
+  tx_pin: GPIO17
+  rx_pin: GPIO16
+
+<<: !include common.yaml
diff --git a/tests/components/zwave_proxy/test.esp32-c3-ard.yaml b/tests/components/zwave_proxy/test.esp32-c3-ard.yaml
new file mode 100644
index 0000000000..b516342f3b
--- /dev/null
+++ b/tests/components/zwave_proxy/test.esp32-c3-ard.yaml
@@ -0,0 +1,5 @@
+substitutions:
+  tx_pin: GPIO4
+  rx_pin: GPIO5
+
+<<: !include common.yaml
diff --git a/tests/components/zwave_proxy/test.esp32-c3-idf.yaml b/tests/components/zwave_proxy/test.esp32-c3-idf.yaml
new file mode 100644
index 0000000000..b516342f3b
--- /dev/null
+++ b/tests/components/zwave_proxy/test.esp32-c3-idf.yaml
@@ -0,0 +1,5 @@
+substitutions:
+  tx_pin: GPIO4
+  rx_pin: GPIO5
+
+<<: !include common.yaml
diff --git a/tests/components/zwave_proxy/test.esp32-idf.yaml b/tests/components/zwave_proxy/test.esp32-idf.yaml
new file mode 100644
index 0000000000..f486544afa
--- /dev/null
+++ b/tests/components/zwave_proxy/test.esp32-idf.yaml
@@ -0,0 +1,5 @@
+substitutions:
+  tx_pin: GPIO17
+  rx_pin: GPIO16
+
+<<: !include common.yaml
diff --git a/tests/components/zwave_proxy/test.esp8266-ard.yaml b/tests/components/zwave_proxy/test.esp8266-ard.yaml
new file mode 100644
index 0000000000..b516342f3b
--- /dev/null
+++ b/tests/components/zwave_proxy/test.esp8266-ard.yaml
@@ -0,0 +1,5 @@
+substitutions:
+  tx_pin: GPIO4
+  rx_pin: GPIO5
+
+<<: !include common.yaml
diff --git a/tests/components/zwave_proxy/test.rp2040-ard.yaml b/tests/components/zwave_proxy/test.rp2040-ard.yaml
new file mode 100644
index 0000000000..b516342f3b
--- /dev/null
+++ b/tests/components/zwave_proxy/test.rp2040-ard.yaml
@@ -0,0 +1,5 @@
+substitutions:
+  tx_pin: GPIO4
+  rx_pin: GPIO5
+
+<<: !include common.yaml