diff --git a/esphome/components/modem/__init__.py b/esphome/components/modem/__init__.py
index bb72d6a0bc..16c227ff6e 100644
--- a/esphome/components/modem/__init__.py
+++ b/esphome/components/modem/__init__.py
@@ -14,6 +14,7 @@ from esphome.const import (
     CONF_ON_CONNECT,
     CONF_ON_DISCONNECT,
     CONF_PASSWORD,
+    CONF_REBOOT_TIMEOUT,
     CONF_RX_PIN,
     CONF_TRIGGER_ID,
     CONF_TX_PIN,
@@ -88,6 +89,9 @@ CONFIG_SCHEMA = cv.All(
             cv.Optional(CONF_ENABLE_ON_BOOT, default=True): cv.boolean,
             cv.Optional(CONF_ENABLE_CMUX, default=False): cv.boolean,
             cv.Optional(CONF_DEBUG, default=False): cv.boolean,
+            cv.Optional(
+                CONF_REBOOT_TIMEOUT, default="10min"
+            ): cv.positive_time_period_milliseconds,
             cv.Optional(CONF_ON_NOT_RESPONDING): automation.validate_automation(
                 {
                     cv.GenerateID(CONF_TRIGGER_ID): cv.declare_id(
@@ -168,6 +172,9 @@ async def to_code(config):
     cg.add_define("USE_MODEM")
 
     var = cg.new_Pvariable(config[CONF_ID])
+
+    cg.add(var.set_reboot_timeout(config[CONF_REBOOT_TIMEOUT]))
+
     if use_address := config.get(CONF_USE_ADDRESS, None):
         cg.add(var.set_use_address(use_address))
 
diff --git a/esphome/components/modem/modem_component.cpp b/esphome/components/modem/modem_component.cpp
index 3a85e74581..2711927009 100644
--- a/esphome/components/modem/modem_component.cpp
+++ b/esphome/components/modem/modem_component.cpp
@@ -54,6 +54,21 @@ void ModemComponent::enable_debug() {
   // esp_log_level_set("CMUX Received", ESP_LOG_VERBOSE);
 }
 
+bool ModemComponent::is_modem_connected(bool verbose) {
+  float rssi, ber;
+  int network_mode = 0;
+  bool network_attached = this->is_network_attached_();
+  this->get_signal_quality(rssi, ber);
+  this->dce->get_network_system_mode(network_mode);
+
+  bool connected = (network_mode != 0) && (!std::isnan(rssi)) && network_attached;
+
+  ESP_LOGD(TAG, "Modem internal network status: %s (attached: %s, type: %s, rssi: %.0fdB %s, ber: %.0f%%)",
+           connected ? "Good" : "BAD", network_attached ? "Yes" : "NO",
+           network_system_mode_to_string(network_mode).c_str(), rssi, get_signal_bars(rssi).c_str(), ber);
+  return connected;
+}
+
 AtCommandResult ModemComponent::send_at(const std::string &cmd, uint32_t timeout) {
   AtCommandResult at_command_result;
   at_command_result.success = false;
@@ -141,13 +156,13 @@ void ModemComponent::enable() {
   if (this->component_state_ == ModemComponentState::DISABLED) {
     this->component_state_ = ModemComponentState::DISCONNECTED;
   }
-  this->internal_state_.start = true;
   this->internal_state_.enabled = true;
 }
 
 void ModemComponent::disable() {
   ESP_LOGD(TAG, "Disabling modem");
   this->internal_state_.enabled = false;
+  this->internal_state_.starting = false;
   if (this->component_state_ != ModemComponentState::CONNECTED) {
     this->component_state_ = ModemComponentState::DISCONNECTED;
   }
@@ -156,14 +171,32 @@ void ModemComponent::disable() {
 void ModemComponent::reconnect() {
   if (!this->internal_state_.reconnect) {
     this->internal_state_.reconnect = true;
-    this->component_state_ = ModemComponentState::NOT_RESPONDING;
+    this->internal_state_.connected = false;
+    this->component_state_ = ModemComponentState::DISCONNECTED;
     // if reconnect fail, let some time before retry
-    set_timeout(120000, [this]() { this->internal_state_.reconnect = false; });
+    set_timeout("retry_reconnect", this->reconnect_grace_period_,
+                [this]() { this->internal_state_.reconnect = false; });
   } else {
     ESP_LOGD(TAG, "Reconnecting already in progress.");
   }
 }
 
+bool ModemComponent::get_signal_quality(float &rssi, float &ber) {
+  rssi = NAN;
+  ber = NAN;
+  int modem_rssi = 99;
+  int modem_ber = 99;
+  if (this->modem_ready() &&
+      (global_modem_component->dce->get_signal_quality(modem_rssi, modem_ber) == command_result::OK)) {
+    if (modem_rssi != 99)
+      rssi = -113 + (modem_rssi * 2);
+    if (modem_ber != 99)
+      ber = 0.1f * (modem_ber * modem_ber);
+    return true;
+  }
+  return false;
+}
+
 network::IPAddresses ModemComponent::get_ip_addresses() {
   network::IPAddresses addresses;
   esp_netif_ip_info_t ip;
@@ -243,7 +276,6 @@ void ModemComponent::loop() {
   static uint32_t next_loop_millis = millis();
   static uint32_t last_health_check = millis();
   static bool connecting = false;
-  static uint8_t network_attach_retry = 10;
 
   if ((millis() < next_loop_millis)) {
     // some commands need some delay
@@ -265,13 +297,13 @@ void ModemComponent::loop() {
         ESP_LOGD(TAG, "Will check that the modem is on in %.1fs...", float(this->power_tonuart_) / 1000);
         break;
       case ModemPowerState::TONUART:
-        this->internal_state_.power_transition = false;
         ESP_LOGD(TAG, "TONUART check sync");
         if (!this->modem_sync_()) {
           ESP_LOGE(TAG, "Unable to power on the modem");
         } else {
           ESP_LOGI(TAG, "Modem powered ON");
         }
+        this->internal_state_.power_transition = false;
         break;
       case ModemPowerState::TOFF:
         delay(10);
@@ -301,23 +333,14 @@ void ModemComponent::loop() {
 
   switch (this->component_state_) {
     case ModemComponentState::NOT_RESPONDING:
-      if (this->internal_state_.start) {
-        if (this->modem_ready(true) && !this->internal_state_.connected) {
-          ESP_LOGI(TAG, "Modem recovered");
-          this->status_clear_warning();
-          this->component_state_ = ModemComponentState::DISCONNECTED;
+      if (this->internal_state_.starting) {
+        ESP_LOGW(TAG, "Modem not responding, resetting...");
+        this->internal_state_.connected = false;
+        // this->modem_lazy_init_();
+        if (!this->modem_sync_()) {
+          ESP_LOGE(TAG, "Unable to recover modem");
         } else {
-          ESP_LOGI(TAG, "Resetting modem");
-          this->internal_state_.connected = false;
-          this->modem_lazy_init_();
-          if (!this->modem_sync_()) {
-            ESP_LOGE(TAG, "Unable to recover modem");
-          } else {
-            this->component_state_ = ModemComponentState::DISCONNECTED;
-          }
-          // if (!this->internal_state_.powered_on) {
-          //   this->poweron_();
-          // }
+          this->component_state_ = ModemComponentState::DISCONNECTED;
         }
       }
       break;
@@ -330,31 +353,30 @@ void ModemComponent::loop() {
           break;
         } else if (!this->internal_state_.modem_synced) {
           if (!this->modem_sync_()) {
-            ESP_LOGE(TAG, "Modem not responding");
             this->component_state_ = ModemComponentState::NOT_RESPONDING;
           }
         }
 
-        if (this->internal_state_.start) {
+        if (this->internal_state_.starting) {
+          float time_left_s = float(this->timeout_ - (millis() - this->internal_state_.startms)) / 1000;
           // want to connect
+          if ((millis() - this->internal_state_.startms) > this->timeout_) {
+            this->abort_("Timeout while trying to connect");
+          }
           if (!connecting) {
             // wait for the modem be attached to a network, start ppp, and set connecting=true
-            if (is_network_attached_()) {
-              network_attach_retry = 10;
+            if (this->is_modem_connected()) {
               if (this->start_ppp_()) {
                 connecting = true;
-                next_loop_millis = millis() + 2000;  // delay for next loop
+              } else {
+                ESP_LOGE(TAG, "modem is unable to enter PPP (time left before abort: %.0fs)", time_left_s);
+                this->stop_ppp_();
+                this->is_modem_connected();
               }
             } else {
-              ESP_LOGD(TAG, "Waiting for the modem to be attached to a network (left retries: %" PRIu8 ")",
-                       network_attach_retry);
-              network_attach_retry--;
-              if (network_attach_retry == 0) {
-                ESP_LOGE(TAG, "modem is unable to attach to a network");
-                network_attach_retry = 10;
-                this->component_state_ = ModemComponentState::NOT_RESPONDING;
-              }
-              next_loop_millis = millis() + 1000;  // delay to retry
+              ESP_LOGW(TAG, "Waiting for the modem to be attached to a network (time left before abort: %.0fs)",
+                       time_left_s);
+              next_loop_millis = millis() + 5000;  // delay to retry
             }
           } else {
             // connecting
@@ -378,7 +400,8 @@ void ModemComponent::loop() {
             }
           }
         } else {
-          this->internal_state_.start = true;
+          this->internal_state_.starting = true;
+          this->internal_state_.startms = millis();
         }
       } else {
         this->component_state_ = ModemComponentState::DISABLED;
@@ -386,21 +409,19 @@ void ModemComponent::loop() {
       break;
 
     case ModemComponentState::CONNECTED:
+      this->internal_state_.starting = false;
       if (this->internal_state_.enabled) {
         if (!this->internal_state_.connected) {
           this->status_set_warning("Connection via Modem lost!");
           this->component_state_ = ModemComponentState::DISCONNECTED;
           break;
         }
-        // clear flags if previously set by this->reconnect()
-        this->internal_state_.reconnect = false;
 
         if (this->cmux_ && (millis() - last_health_check) > 30000) {
-          ESP_LOGD(TAG, "modem health check");
           last_health_check = millis();
-          if (!this->get_imei()) {
-            ESP_LOGW(TAG, "modem health check failed");
-            this->component_state_ = ModemComponentState::NOT_RESPONDING;
+          if (!this->is_modem_connected()) {
+            ESP_LOGW(TAG, "Reconnecting...");
+            this->reconnect();
           }
         }
       } else {
@@ -626,7 +647,9 @@ bool ModemComponent::is_network_attached_() {
 bool ModemComponent::start_ppp_() {
   this->internal_state_.connect_begin = millis();
   this->status_set_warning("Starting connection");
-  watchdog::WatchdogManager wdt(10000);
+  watchdog::WatchdogManager wdt(15000);  // mini 10000
+
+  uint32_t now = millis();
 
   // will be set to true on event IP_EVENT_PPP_GOT_IP
   this->internal_state_.got_ipv4_address = false;
@@ -643,7 +666,9 @@ bool ModemComponent::start_ppp_() {
   }
 
   if (!status) {
-    ESP_LOGE(TAG, "Unable to change modem mode to PPP");
+    ESP_LOGE(TAG, "Unable to change modem mode to PPP after %" PRIu32 "ms", millis() - now);
+  } else {
+    ESP_LOGD(TAG, "Entered PPP after %" PRIu32 "ms", millis() - now);
   }
 
   return status;
@@ -658,7 +683,7 @@ bool ModemComponent::stop_ppp_() {
     status = this->dce->set_mode(modem_mode::COMMAND_MODE);
   }
   if (!status) {
-    ESP_LOGE(TAG, "Error exiting PPP");
+    ESP_LOGW(TAG, "Error exiting PPP");
   }
   return status;
 }
@@ -709,6 +734,12 @@ void ModemComponent::poweroff_() {
   }
 }
 
+void ModemComponent::abort_(const std::string &message) {
+  ESP_LOGE(TAG, "Aborting: %s", message.c_str());
+  this->send_at("AT+CFUN=1,1");
+  App.reboot();
+}
+
 void ModemComponent::dump_connect_params_() {
   if (!this->internal_state_.connected) {
     ESP_LOGCONFIG(TAG, "Modem connection: Not connected");
@@ -716,11 +747,11 @@ void ModemComponent::dump_connect_params_() {
   }
   esp_netif_ip_info_t ip;
   esp_netif_get_ip_info(this->ppp_netif_, &ip);
-  ESP_LOGCONFIG(TAG, "Modem connection:");
-  ESP_LOGCONFIG(TAG, "  IP Address  : %s", network::IPAddress(&ip.ip).str().c_str());
-  ESP_LOGCONFIG(TAG, "  Hostname    : '%s'", App.get_name().c_str());
-  ESP_LOGCONFIG(TAG, "  Subnet      : %s", network::IPAddress(&ip.netmask).str().c_str());
-  ESP_LOGCONFIG(TAG, "  Gateway     : %s", network::IPAddress(&ip.gw).str().c_str());
+  ESP_LOGI(TAG, "Modem connection:");
+  ESP_LOGI(TAG, "  IP Address  : %s", network::IPAddress(&ip.ip).str().c_str());
+  ESP_LOGI(TAG, "  Hostname    : '%s'", App.get_name().c_str());
+  ESP_LOGI(TAG, "  Subnet      : %s", network::IPAddress(&ip.netmask).str().c_str());
+  ESP_LOGI(TAG, "  Gateway     : %s", network::IPAddress(&ip.gw).str().c_str());
 
   const ip_addr_t *dns_main_ip = dns_getserver(ESP_NETIF_DNS_MAIN);
   const ip_addr_t *dns_backup_ip = dns_getserver(ESP_NETIF_DNS_BACKUP);
diff --git a/esphome/components/modem/modem_component.h b/esphome/components/modem/modem_component.h
index f2a67dec4d..36469fc4e3 100644
--- a/esphome/components/modem/modem_component.h
+++ b/esphome/components/modem/modem_component.h
@@ -52,6 +52,7 @@ struct AtCommandResult {
 
 class ModemComponent : public Component {
  public:
+  void set_reboot_timeout(uint16_t timeout) { this->timeout_ = timeout; }
   void set_use_address(const std::string &use_address) { this->use_address_ = use_address; }
   void set_rx_pin(InternalGPIOPin *rx_pin) { this->rx_pin_ = rx_pin; }
   void set_tx_pin(InternalGPIOPin *tx_pin) { this->tx_pin_ = tx_pin; }
@@ -67,8 +68,10 @@ class ModemComponent : public Component {
   void enable_cmux() { this->cmux_ = true; }
   void enable_debug();
   void add_init_at_command(const std::string &cmd) { this->init_at_commands_.push_back(cmd); }
-  bool is_connected() { return this->component_state_ == ModemComponentState::CONNECTED; }
+  bool is_connected() { return this->internal_state_.connected; }
   bool is_disabled() { return this->component_state_ == ModemComponentState::DISABLED; }
+  bool is_modem_connected(bool verbose);  // this if for modem only, not PPP
+  bool is_modem_connected() { return this->is_modem_connected(true); }
   AtCommandResult send_at(const std::string &cmd, uint32_t timeout);
   AtCommandResult send_at(const std::string &cmd);
   AtCommandResult get_imei();
@@ -78,6 +81,7 @@ class ModemComponent : public Component {
   void enable();
   void disable();
   void reconnect();
+  bool get_signal_quality(float &rssi, float &ber);
 
   network::IPAddresses get_ip_addresses();
   std::string get_use_address() const;
@@ -90,12 +94,7 @@ class ModemComponent : public Component {
   void loop() override;
   void dump_config() override { this->dump_connect_params_(); }
   float get_setup_priority() const override { return setup_priority::WIFI + 1; }  // just before WIFI
-  bool can_proceed() override {
-    if (!this->internal_state_.enabled) {
-      return true;
-    }
-    return this->is_connected();
-  };
+  bool can_proceed() override { return network::is_disabled() || this->is_connected(); };
   void add_on_state_callback(std::function<void(ModemComponentState, ModemComponentState)> &&callback) {
     this->on_state_callback_.add(std::move(callback));
   }
@@ -113,10 +112,12 @@ class ModemComponent : public Component {
   bool stop_ppp_();
   void poweron_();
   void poweroff_();
+  void abort_(const std::string &message);
   static void ip_event_handler(void *arg, esp_event_base_t event_base, int32_t event_id, void *event_data);
   void dump_connect_params_();
 
   // Attributes from yaml config
+  uint16_t timeout_;
   InternalGPIOPin *tx_pin_;
   InternalGPIOPin *rx_pin_;
   std::string model_;
@@ -142,7 +143,7 @@ class ModemComponent : public Component {
   size_t uart_event_task_stack_size_ = 4096;  // 2000-6000
   uint8_t uart_event_task_priority_ = 5;      // 3-22
   uint32_t command_delay_ = 1000;             // timeout for AT commands
-  uint32_t update_interval_ = 60 * 1000;
+  uint32_t reconnect_grace_period_ = 30000;   // let some time to mqtt or api to reconnect before retry
 
   // Changes will trigger user callback
   ModemComponentState component_state_{ModemComponentState::DISABLED};
@@ -153,7 +154,9 @@ class ModemComponent : public Component {
   esp_netif_t *ppp_netif_{nullptr};
 
   struct InternalState {
-    bool start{false};
+    bool starting{false};
+    // trying to connect timestamp (for timeout)
+    uint32_t startms;
     bool enabled{false};
     bool connected{false};
     bool got_ipv4_address{false};
diff --git a/esphome/components/modem/sensor/modem_sensor.cpp b/esphome/components/modem/sensor/modem_sensor.cpp
index 57eb5d5dec..b5c4a3c6b6 100644
--- a/esphome/components/modem/sensor/modem_sensor.cpp
+++ b/esphome/components/modem/sensor/modem_sensor.cpp
@@ -47,23 +47,14 @@ void ModemSensor::update() {
 }
 
 void ModemSensor::update_signal_sensors_() {
-  float rssi = NAN;
-  float ber = NAN;
   if (this->rssi_sensor_ || this->ber_sensor_) {
-    int modem_rssi = 99;
-    int modem_ber = 99;
-    if (global_modem_component->modem_ready() &&
-        (global_modem_component->dce->get_signal_quality(modem_rssi, modem_ber) == command_result::OK)) {
-      if (modem_rssi != 99)
-        rssi = -113 + (modem_rssi * 2);
-      if (modem_ber != 99)
-        ber = 0.1f * (modem_ber * modem_ber);
-
-      if (this->rssi_sensor_)
-        this->rssi_sensor_->publish_state(rssi);
-      if (this->ber_sensor_)
-        this->ber_sensor_->publish_state(ber);
-    }
+    float rssi;
+    float ber;
+    global_modem_component->get_signal_quality(rssi, ber);
+    if (this->rssi_sensor_)
+      this->rssi_sensor_->publish_state(rssi);
+    if (this->ber_sensor_)
+      this->ber_sensor_->publish_state(ber);
   }
 }