diff --git a/esphome/components/json/json_util.cpp b/esphome/components/json/json_util.cpp
index 2bd8112255..7e701af48b 100644
--- a/esphome/components/json/json_util.cpp
+++ b/esphome/components/json/json_util.cpp
@@ -26,21 +26,33 @@ std::string build_json(const json_build_t &f) {
   const size_t free_heap = heap_caps_get_largest_free_block(MALLOC_CAP_8BIT);
 #endif
 
-  const size_t request_size = std::min(free_heap, (size_t) 512);
-
-  DynamicJsonDocument json_document(request_size);
-  if (json_document.capacity() == 0) {
-    ESP_LOGE(TAG, "Could not allocate memory for JSON document! Requested %u bytes, largest free heap block: %u bytes",
-             request_size, free_heap);
-    return "{}";
+  size_t request_size = std::min(free_heap, (size_t) 512);
+  while (true) {
+    ESP_LOGV(TAG, "Attempting to allocate %u bytes for JSON serialization", request_size);
+    DynamicJsonDocument json_document(request_size);
+    if (json_document.capacity() == 0) {
+      ESP_LOGE(TAG,
+               "Could not allocate memory for JSON document! Requested %u bytes, largest free heap block: %u bytes",
+               request_size, free_heap);
+      return "{}";
+    }
+    JsonObject root = json_document.to<JsonObject>();
+    f(root);
+    if (json_document.overflowed()) {
+      if (request_size == free_heap) {
+        ESP_LOGE(TAG, "Could not allocate memory for JSON document! Overflowed largest free heap block: %u bytes",
+                 free_heap);
+        return "{}";
+      }
+      request_size = std::min(request_size * 2, free_heap);
+      continue;
+    }
+    json_document.shrinkToFit();
+    ESP_LOGV(TAG, "Size after shrink %u bytes", json_document.capacity());
+    std::string output;
+    serializeJson(json_document, output);
+    return output;
   }
-  JsonObject root = json_document.to<JsonObject>();
-  f(root);
-  json_document.shrinkToFit();
-  ESP_LOGV(TAG, "Size after shrink %u bytes", json_document.capacity());
-  std::string output;
-  serializeJson(json_document, output);
-  return output;
 }
 
 void parse_json(const std::string &data, const json_parse_t &f) {