diff --git a/esphome/components/substitutions/__init__.py b/esphome/components/substitutions/__init__.py
index 9c5d444b2c..c4bc1b4371 100644
--- a/esphome/components/substitutions/__init__.py
+++ b/esphome/components/substitutions/__init__.py
@@ -4,6 +4,7 @@ import re
 import esphome.config_validation as cv
 from esphome import core
 from esphome.const import CONF_SUBSTITUTIONS
+from esphome.yaml_util import ESPHomeDataBase, make_data_base
 
 CODEOWNERS = ['@esphome/core']
 _LOGGER = logging.getLogger(__name__)
@@ -68,6 +69,14 @@ def _expand_substitutions(substitutions, value, path):
         value = value[:i] + sub
         i = len(value)
         value += tail
+
+    # orig_value can also already be a lambda with esp_range info, and only
+    # a plain string is sent in orig_value
+    if isinstance(orig_value, ESPHomeDataBase):
+        # even though string can get larger or smaller, the range should point
+        # to original document marks
+        return make_data_base(value, orig_value)
+
     return value
 
 
diff --git a/tests/test1.yaml b/tests/test1.yaml
index d6ed37c67c..5da2ee03fe 100644
--- a/tests/test1.yaml
+++ b/tests/test1.yaml
@@ -1,5 +1,8 @@
 substitutions:
   devicename: test1
+  sensorname: my
+  textname: template
+  roomname: living_room
 
 esphome:
   name: test1
@@ -36,7 +39,7 @@ esphome:
           verify_ssl: false
           json:
             key: !lambda |-
-              return id(template_text).state;
+              return id(${textname}_text).state;
             greeting: 'Hello World'
       - http_request.send:
           method: PUT
@@ -121,7 +124,7 @@ mqtt:
                 int data = x["my_data"];
                 ESP_LOGD("main", "The data is: %d", data);
             - light.turn_on:
-                id: living_room_lights
+                id: ${roomname}_lights
                 brightness: !lambda |-
                   float brightness = 1.0;
                   if (x.containsKey("brightness"))
@@ -133,10 +136,10 @@ mqtt:
                     effect = x["effect"];
                   return effect;
             - light.control:
-                id: living_room_lights
-                brightness: !lambda 'return id(living_room_lights).current_values.get_brightness() + 0.5;'
+                id: ${roomname}_lights
+                brightness: !lambda 'return id(${roomname}_lights).current_values.get_brightness() + 0.5;'
             - light.dim_relative:
-                id: living_room_lights
+                id: ${roomname}_lights
                 relative_brightness: 5%
             - uart.write:
                 id: uart0
@@ -278,9 +281,9 @@ sensor:
       then:
         - lambda: |-
             ESP_LOGD("main", "Got value %f", x);
-            id(my_sensor).publish_state(42.0);
-            ESP_LOGI("main", "Value of my sensor: %f", id(my_sensor).state);
-            ESP_LOGI("main", "Raw Value of my sensor: %f", id(my_sensor).state);
+            id(${sensorname}_sensor).publish_state(42.0);
+            ESP_LOGI("main", "Value of my sensor: %f", id(${sensorname}_sensor).state);
+            ESP_LOGI("main", "Raw Value of my sensor: %f", id(${sensorname}_sensor).state);
     on_value_range:
       above: 5
       below: 10
@@ -307,7 +310,7 @@ sensor:
   - platform: ads1115
     multiplexer: 'A0_A1'
     gain: 1.024
-    id: my_sensor
+    id: ${sensorname}_sensor
     filters:
     state_topic: hi/me
     retain: false
@@ -946,12 +949,12 @@ binary_sensor:
     name: 'Garage Door Open'
     id: garage_door
     lambda: |-
-      if (isnan(id(my_sensor).state)) {
+      if (isnan(id(${sensorname}_sensor).state)) {
         // isnan checks if the ultrasonic sensor echo
         // has timed out, resulting in a NaN (not a number) state
         // in that case, return {} to indicate that we don't know.
         return {};
-      } else if (id(my_sensor).state > 30) {
+      } else if (id(${sensorname}_sensor).state > 30) {
         // Garage Door is open.
         return true;
       } else {
@@ -1244,7 +1247,7 @@ light:
               state = 0;
   - platform: rgb
     name: 'Living Room Lights'
-    id: living_room_lights
+    id: ${roomname}_lights
     red: pca_0
     green: pca_1
     blue: pca_2
@@ -1400,14 +1403,14 @@ climate:
     name: TCL112 Climate With Sensor
     supports_heat: True
     supports_cool: True
-    sensor: my_sensor
+    sensor: ${sensorname}_sensor
   - platform: tcl112
     name: TCL112 Climate
   - platform: coolix
     name: Coolix Climate With Sensor
     supports_heat: True
     supports_cool: True
-    sensor: my_sensor
+    sensor: ${sensorname}_sensor
   - platform: coolix
     name: Coolix Climate
   - platform: fujitsu_general
@@ -1976,10 +1979,10 @@ text_sensor:
     qos: 2
     on_value:
       - text_sensor.template.publish:
-          id: template_text
+          id: ${textname}_text
           state: Hello World
       - text_sensor.template.publish:
-          id: template_text
+          id: ${textname}_text
           state: |-
             return "Hello World2";
       - globals.set:
@@ -1990,7 +1993,7 @@ text_sensor:
           data: [0x10, 0x20, 0x30]
   - platform: template
     name: Template Text Sensor
-    id: template_text
+    id: ${textname}_text
   - platform: wifi_info
     ip_address:
       name: 'IP Address'
@@ -2032,4 +2035,4 @@ canbus:
               condition:
                 lambda: 'return x[0] == 0x11;'
               then:
-                light.toggle: living_room_lights
+                light.toggle: ${roomname}_lights