diff --git a/esphome/components/modem/helpers.cpp b/esphome/components/modem/helpers.cpp
index cc7b7e3c03..07ae746271 100644
--- a/esphome/components/modem/helpers.cpp
+++ b/esphome/components/modem/helpers.cpp
@@ -49,6 +49,142 @@ std::string state_to_string(ModemComponentState state) {
   return str;
 }
 
+std::string network_system_mode_to_string(int mode) {
+  std::string network_type = "Not available";
+  // Access Technology from AT+CNSMOD?
+  // see https://www.waveshare.com/w/upload/a/af/SIM7500_SIM7600_Series_AT_Command_Manual_V3.00.pdf, page 109
+  switch (mode) {
+    case 0:
+      network_type = "No service";
+      break;
+    case 1:
+      network_type = "GSM";
+      break;
+    case 2:
+      network_type = "GPRS";
+      break;
+    case 3:
+      network_type = "EGPRS (EDGE)";
+      break;
+    case 4:
+      network_type = "WCDMA";
+      break;
+    case 5:
+      network_type = "HSDPA only (WCDMA)";
+      break;
+    case 6:
+      network_type = "HSUPA only (WCDMA)";
+      break;
+    case 7:
+      network_type = "HSPA (HSDPA and HSUPA, WCDMA)";
+      break;
+    case 8:
+      network_type = "LTE";
+      break;
+    case 9:
+      network_type = "TDS-CDMA";
+      break;
+    case 10:
+      network_type = "TDS-HSDPA only";
+      break;
+    case 11:
+      network_type = "TDS-HSUPA only";
+      break;
+    case 12:
+      network_type = "TDS-HSPA (HSDPA and HSUPA)";
+      break;
+    case 13:
+      network_type = "CDMA";
+      break;
+    case 14:
+      network_type = "EVDO";
+      break;
+    case 15:
+      network_type = "HYBRID (CDMA and EVDO)";
+      break;
+    case 16:
+      network_type = "1XLTE (CDMA and LTE)";
+      break;
+    case 23:
+      network_type = "EHRPD";
+      break;
+    case 24:
+      network_type = "HYBRID (CDMA and EHRPD)";
+      break;
+    default:
+      network_type = "Unknown";
+  }
+  return network_type;
+}
+
+std::string get_signal_bars(float rssi) { return get_signal_bars(rssi, true); }
+std::string get_signal_bars(float rssi, bool color) {
+  // adapted from wifi_component.cpp
+  // LOWER ONE QUARTER BLOCK
+  // Unicode: U+2582, UTF-8: E2 96 82
+  // LOWER HALF BLOCK
+  // Unicode: U+2584, UTF-8: E2 96 84
+  // LOWER THREE QUARTERS BLOCK
+  // Unicode: U+2586, UTF-8: E2 96 86
+  // FULL BLOCK
+  // Unicode: U+2588, UTF-8: E2 96 88
+
+  if (!color) {
+    if (std::isnan(rssi)) {
+      return {};
+    } else if (rssi >= -50) {
+      return "High";
+    } else if (rssi >= -65) {
+      return "Good";
+    } else if (rssi >= -85) {
+      return "Medium";
+    } else {
+      return "Low";
+    }
+  } else {
+    if (std::isnan(rssi)) {
+      return "\033[0;31m"  // red
+             "!"
+             "\033[0;37m"
+             "\xe2\x96\x84"
+             "\xe2\x96\x86"
+             "\xe2\x96\x88"
+             "\033[0m";
+    } else if (rssi >= -50) {
+      return "\033[0;32m"  // green
+             "\xe2\x96\x82"
+             "\xe2\x96\x84"
+             "\xe2\x96\x86"
+             "\xe2\x96\x88"
+             "\033[0m";
+    } else if (rssi >= -65) {
+      return "\033[0;33m"  // yellow
+             "\xe2\x96\x82"
+             "\xe2\x96\x84"
+             "\xe2\x96\x86"
+             "\033[0;37m"
+             "\xe2\x96\x88"
+             "\033[0m";
+    } else if (rssi >= -85) {
+      return "\033[0;33m"  // yellow
+             "\xe2\x96\x82"
+             "\xe2\x96\x84"
+             "\033[0;37m"
+             "\xe2\x96\x86"
+             "\xe2\x96\x88"
+             "\033[0m";
+    } else {
+      return "\033[0;31m"  // red
+             "\xe2\x96\x82"
+             "\033[0;37m"
+             "\xe2\x96\x84"
+             "\xe2\x96\x86"
+             "\xe2\x96\x88"
+             "\033[0m";
+    }
+  }
+}
+
 }  // namespace modem
 }  // namespace esphome
 #endif  // USE_ESP_IDF
diff --git a/esphome/components/modem/helpers.h b/esphome/components/modem/helpers.h
index 92b9b718f5..380fe56890 100644
--- a/esphome/components/modem/helpers.h
+++ b/esphome/components/modem/helpers.h
@@ -10,8 +10,10 @@ namespace esphome {
 namespace modem {
 
 std::string command_result_to_string(command_result err);
-
 std::string state_to_string(ModemComponentState state);
+std::string network_system_mode_to_string(int mode);
+std::string get_signal_bars(float rssi);
+std::string get_signal_bars(float rssi, bool color);
 
 }  // namespace modem
 }  // namespace esphome
diff --git a/esphome/components/modem/text_sensor/__init__.py b/esphome/components/modem/text_sensor/__init__.py
index e466ad0550..560796a21e 100644
--- a/esphome/components/modem/text_sensor/__init__.py
+++ b/esphome/components/modem/text_sensor/__init__.py
@@ -1,7 +1,7 @@
 import esphome.codegen as cg
 from esphome.components import text_sensor
 import esphome.config_validation as cv
-from esphome.const import CONF_ID, DEVICE_CLASS_EMPTY
+from esphome.const import CONF_ID, CONF_SIGNAL_STRENGTH, DEVICE_CLASS_EMPTY
 
 from .. import MODEM_COMPONENT_SCHEMA, final_validate_platform, modem_ns
 
@@ -24,6 +24,9 @@ CONFIG_SCHEMA = cv.All(
             cv.Optional(CONF_NETWORK_TYPE): text_sensor.text_sensor_schema(
                 device_class=DEVICE_CLASS_EMPTY,
             ),
+            cv.Optional(CONF_SIGNAL_STRENGTH): text_sensor.text_sensor_schema(
+                device_class=DEVICE_CLASS_EMPTY,
+            ),
         }
     )
     .extend(MODEM_COMPONENT_SCHEMA)
@@ -40,4 +43,8 @@ async def to_code(config):
         network_type_text_sensor = await text_sensor.new_text_sensor(network_type)
         cg.add(var.set_network_type_text_sensor(network_type_text_sensor))
 
+    if signal_strength := config.get(CONF_SIGNAL_STRENGTH, None):
+        signal_strength_text_sensor = await text_sensor.new_text_sensor(signal_strength)
+        cg.add(var.set_signal_strength_text_sensor(signal_strength_text_sensor))
+
     await cg.register_component(var, config)
diff --git a/esphome/components/modem/text_sensor/modem_text_sensor.cpp b/esphome/components/modem/text_sensor/modem_text_sensor.cpp
index b5fa13ee8b..4c15609e0e 100644
--- a/esphome/components/modem/text_sensor/modem_text_sensor.cpp
+++ b/esphome/components/modem/text_sensor/modem_text_sensor.cpp
@@ -11,6 +11,7 @@
 #include "esphome/core/application.h"
 
 #include "../modem_component.h"
+#include "../helpers.h"
 
 #define ESPHL_ERROR_CHECK(err, message) \
   if ((err) != ESP_OK) { \
@@ -38,6 +39,7 @@ void ModemTextSensor::update() {
   ESP_LOGD(TAG, "Modem text_sensor update");
   if (modem::global_modem_component->dce && modem::global_modem_component->modem_ready()) {
     this->update_network_type_text_sensor_();
+    this->update_signal_strength_text_sensor_();
   }
 }
 
@@ -46,74 +48,22 @@ void ModemTextSensor::update_network_type_text_sensor_() {
     int act;
     std::string network_type = "Not available";
     if (modem::global_modem_component->dce->get_network_system_mode(act) == command_result::OK) {
-      // Access Technology from AT+CNSMOD?
-      // see https://www.waveshare.com/w/upload/a/af/SIM7500_SIM7600_Series_AT_Command_Manual_V3.00.pdf, page 109
-      switch (act) {
-        case 0:
-          network_type = "No service";
-          break;
-        case 1:
-          network_type = "GSM";
-          break;
-        case 2:
-          network_type = "GPRS";
-          break;
-        case 3:
-          network_type = "EGPRS (EDGE)";
-          break;
-        case 4:
-          network_type = "WCDMA";
-          break;
-        case 5:
-          network_type = "HSDPA only (WCDMA)";
-          break;
-        case 6:
-          network_type = "HSUPA only (WCDMA)";
-          break;
-        case 7:
-          network_type = "HSPA (HSDPA and HSUPA, WCDMA)";
-          break;
-        case 8:
-          network_type = "LTE";
-          break;
-        case 9:
-          network_type = "TDS-CDMA";
-          break;
-        case 10:
-          network_type = "TDS-HSDPA only";
-          break;
-        case 11:
-          network_type = "TDS-HSUPA only";
-          break;
-        case 12:
-          network_type = "TDS-HSPA (HSDPA and HSUPA)";
-          break;
-        case 13:
-          network_type = "CDMA";
-          break;
-        case 14:
-          network_type = "EVDO";
-          break;
-        case 15:
-          network_type = "HYBRID (CDMA and EVDO)";
-          break;
-        case 16:
-          network_type = "1XLTE (CDMA and LTE)";
-          break;
-        case 23:
-          network_type = "EHRPD";
-          break;
-        case 24:
-          network_type = "HYBRID (CDMA and EHRPD)";
-          break;
-        default:
-          network_type = "Unknown";
-      }
+      network_type = network_system_mode_to_string(act);
     }
     this->network_type_text_sensor_->publish_state(network_type);
   }
 }
 
+void ModemTextSensor::update_signal_strength_text_sensor_() {
+  if (modem::global_modem_component->modem_ready() && this->network_type_text_sensor_) {
+    float rssi, ber;
+    if (modem::global_modem_component->get_signal_quality(rssi, ber)) {
+      std::string bars = get_signal_bars(rssi, false);
+      this->signal_strength_text_sensor_->publish_state(bars);
+    }
+  }
+}
+
 }  // namespace modem
 }  // namespace esphome
 
diff --git a/esphome/components/modem/text_sensor/modem_text_sensor.h b/esphome/components/modem/text_sensor/modem_text_sensor.h
index 4ff714adc6..44013a89ce 100644
--- a/esphome/components/modem/text_sensor/modem_text_sensor.h
+++ b/esphome/components/modem/text_sensor/modem_text_sensor.h
@@ -18,6 +18,9 @@ class ModemTextSensor : public PollingComponent {
   void set_network_type_text_sensor(text_sensor::TextSensor *network_type_text_sensor) {
     this->network_type_text_sensor_ = network_type_text_sensor;
   }
+  void set_signal_strength_text_sensor(text_sensor::TextSensor *signal_strength_text_sensor) {
+    this->signal_strength_text_sensor_ = signal_strength_text_sensor;
+  }
   // ========== INTERNAL METHODS ==========
   // (In most use cases you won't need these)
 
@@ -28,7 +31,9 @@ class ModemTextSensor : public PollingComponent {
 
  protected:
   text_sensor::TextSensor *network_type_text_sensor_{nullptr};
+  text_sensor::TextSensor *signal_strength_text_sensor_{nullptr};
   void update_network_type_text_sensor_();
+  void update_signal_strength_text_sensor_();
 };
 
 }  // namespace modem
diff --git a/tests/components/modem/test.esp32-idf.yaml b/tests/components/modem/test.esp32-idf.yaml
index ac36f8936d..5fff1bbcc4 100644
--- a/tests/components/modem/test.esp32-idf.yaml
+++ b/tests/components/modem/test.esp32-idf.yaml
@@ -12,19 +12,22 @@ modem:
   pin_code: "0000"
   enable_on_boot: True
   enable_cmux: True
+  reboot_timeout: 5min
   init_at:
     - AT
   on_not_responding:
     logger.log: "modem not responding"
   on_connect:
-    logger.log: "got IP"
+    logger.log: "modem connected"
   on_disconnect:
-    logger.log: "lost IP"
+    logger.log: "modem disconnected"
 
 text_sensor:
   - platform: modem
     network_type:
       name: network type
+    signal_strength:
+      name: Signal strength
 
 sensor:
   - platform: modem