diff --git a/esphome/components/rotary_encoder/rotary_encoder.cpp b/esphome/components/rotary_encoder/rotary_encoder.cpp
index 769d3e1103..873aaf1971 100644
--- a/esphome/components/rotary_encoder/rotary_encoder.cpp
+++ b/esphome/components/rotary_encoder/rotary_encoder.cpp
@@ -94,10 +94,12 @@ void ICACHE_RAM_ATTR HOT RotaryEncoderSensorStore::gpio_intr(RotaryEncoderSensor
   if ((new_state & arg->resolution & STATE_HAS_INCREMENTED) != 0) {
     if (arg->counter < arg->max_value)
       arg->counter++;
+    arg->on_clockwise_callback_.call();
   }
   if ((new_state & arg->resolution & STATE_HAS_DECREMENTED) != 0) {
     if (arg->counter > arg->min_value)
       arg->counter--;
+    arg->on_anticlockwise_callback_.call();
   }
 
   arg->state = new_state;
diff --git a/esphome/components/rotary_encoder/rotary_encoder.h b/esphome/components/rotary_encoder/rotary_encoder.h
index f0e47dfe0a..e066188f22 100644
--- a/esphome/components/rotary_encoder/rotary_encoder.h
+++ b/esphome/components/rotary_encoder/rotary_encoder.h
@@ -27,6 +27,9 @@ struct RotaryEncoderSensorStore {
   int32_t last_read{0};
   uint8_t state{0};
 
+  CallbackManager<void()> on_clockwise_callback_;
+  CallbackManager<void()> on_anticlockwise_callback_;
+
   static void gpio_intr(RotaryEncoderSensorStore *arg);
 };
 
@@ -62,6 +65,14 @@ class RotaryEncoderSensor : public sensor::Sensor, public Component {
 
   float get_setup_priority() const override;
 
+  void add_on_clockwise_callback(std::function<void()> callback) {
+    this->store_.on_clockwise_callback_.add(std::move(callback));
+  }
+
+  void add_on_anticlockwise_callback(std::function<void()> callback) {
+    this->store_.on_anticlockwise_callback_.add(std::move(callback));
+  }
+
  protected:
   GPIOPin *pin_a_;
   GPIOPin *pin_b_;
@@ -81,5 +92,19 @@ template<typename... Ts> class RotaryEncoderSetValueAction : public Action<Ts...
   RotaryEncoderSensor *encoder_;
 };
 
+class RotaryEncoderClockwiseTrigger : public Trigger<> {
+ public:
+  explicit RotaryEncoderClockwiseTrigger(RotaryEncoderSensor *parent) {
+    parent->add_on_clockwise_callback([this]() { this->trigger(); });
+  }
+};
+
+class RotaryEncoderAnticlockwiseTrigger : public Trigger<> {
+ public:
+  explicit RotaryEncoderAnticlockwiseTrigger(RotaryEncoderSensor *parent) {
+    parent->add_on_anticlockwise_callback([this]() { this->trigger(); });
+  }
+};
+
 }  // namespace rotary_encoder
 }  // namespace esphome
diff --git a/esphome/components/rotary_encoder/sensor.py b/esphome/components/rotary_encoder/sensor.py
index 214ccbd056..c518982bc6 100644
--- a/esphome/components/rotary_encoder/sensor.py
+++ b/esphome/components/rotary_encoder/sensor.py
@@ -3,7 +3,7 @@ import esphome.config_validation as cv
 from esphome import pins, automation
 from esphome.components import sensor
 from esphome.const import CONF_ID, CONF_RESOLUTION, CONF_MIN_VALUE, CONF_MAX_VALUE, UNIT_STEPS, \
-    ICON_ROTATE_RIGHT, CONF_VALUE, CONF_PIN_A, CONF_PIN_B
+    ICON_ROTATE_RIGHT, CONF_VALUE, CONF_PIN_A, CONF_PIN_B, CONF_TRIGGER_ID
 
 rotary_encoder_ns = cg.esphome_ns.namespace('rotary_encoder')
 RotaryEncoderResolution = rotary_encoder_ns.enum('RotaryEncoderResolution')
@@ -14,11 +14,18 @@ RESOLUTIONS = {
 }
 
 CONF_PIN_RESET = 'pin_reset'
+CONF_ON_CLOCKWISE = 'on_clockwise'
+CONF_ON_ANTICLOCKWISE = 'on_anticlockwise'
 
 RotaryEncoderSensor = rotary_encoder_ns.class_('RotaryEncoderSensor', sensor.Sensor, cg.Component)
 RotaryEncoderSetValueAction = rotary_encoder_ns.class_('RotaryEncoderSetValueAction',
                                                        automation.Action)
 
+RotaryEncoderClockwiseTrigger = rotary_encoder_ns.class_('RotaryEncoderClockwiseTrigger',
+                                                         automation.Trigger)
+RotaryEncoderAnticlockwiseTrigger = rotary_encoder_ns.class_('RotaryEncoderAnticlockwiseTrigger',
+                                                             automation.Trigger)
+
 
 def validate_min_max_value(config):
     if CONF_MIN_VALUE in config and CONF_MAX_VALUE in config:
@@ -40,6 +47,12 @@ CONFIG_SCHEMA = cv.All(sensor.sensor_schema(UNIT_STEPS, ICON_ROTATE_RIGHT, 0).ex
     cv.Optional(CONF_RESOLUTION, default=1): cv.enum(RESOLUTIONS, int=True),
     cv.Optional(CONF_MIN_VALUE): cv.int_,
     cv.Optional(CONF_MAX_VALUE): cv.int_,
+    cv.Optional(CONF_ON_CLOCKWISE): automation.validate_automation({
+        cv.GenerateID(CONF_TRIGGER_ID): cv.declare_id(RotaryEncoderClockwiseTrigger),
+    }),
+    cv.Optional(CONF_ON_ANTICLOCKWISE): automation.validate_automation({
+        cv.GenerateID(CONF_TRIGGER_ID): cv.declare_id(RotaryEncoderAnticlockwiseTrigger),
+    }),
 }).extend(cv.COMPONENT_SCHEMA), validate_min_max_value)
 
 
@@ -61,6 +74,13 @@ def to_code(config):
     if CONF_MAX_VALUE in config:
         cg.add(var.set_max_value(config[CONF_MAX_VALUE]))
 
+    for conf in config.get(CONF_ON_CLOCKWISE, []):
+        trigger = cg.new_Pvariable(conf[CONF_TRIGGER_ID], var)
+        yield automation.build_automation(trigger, [], conf)
+    for conf in config.get(CONF_ON_ANTICLOCKWISE, []):
+        trigger = cg.new_Pvariable(conf[CONF_TRIGGER_ID], var)
+        yield automation.build_automation(trigger, [], conf)
+
 
 @automation.register_action('sensor.rotary_encoder.set_value', RotaryEncoderSetValueAction,
                             cv.Schema({
diff --git a/tests/test1.yaml b/tests/test1.yaml
index f5371eeab6..10e35594fe 100644
--- a/tests/test1.yaml
+++ b/tests/test1.yaml
@@ -586,6 +586,10 @@ sensor:
       - sensor.rotary_encoder.set_value:
           id: rotary_encoder1
           value: !lambda 'return -1;'
+    on_clockwise:
+      - logger.log: "Clockwise"
+    on_anticlockwise:
+      - logger.log: "Anticlockwise"
   - platform: pulse_width
     name: Pulse Width
     pin: GPIO12