diff --git a/.github/workflows/ci-docker.yml b/.github/workflows/ci-docker.yml
index b7aeeda471..22109138fe 100644
--- a/.github/workflows/ci-docker.yml
+++ b/.github/workflows/ci-docker.yml
@@ -25,7 +25,7 @@ jobs:
       - uses: actions/checkout@v2
       - name: Set up env variables
         run: |
-          base_version="2.4.1"
+          base_version="2.5.0"
 
           if [[ "${{ matrix.build_type }}" == "hassio" ]]; then
             build_from="esphome/esphome-hassio-base-${{ matrix.arch }}:${base_version}"
diff --git a/.github/workflows/release-dev.yml b/.github/workflows/release-dev.yml
index 2a427d6c95..81b3cef124 100644
--- a/.github/workflows/release-dev.yml
+++ b/.github/workflows/release-dev.yml
@@ -190,7 +190,7 @@ jobs:
           echo "::set-env name=TAG::${TAG}"
       - name: Set up env variables
         run: |
-          base_version="2.4.1"
+          base_version="2.5.0"
 
           if [[ "${{ matrix.build_type }}" == "hassio" ]]; then
             build_from="esphome/esphome-hassio-base-${{ matrix.arch }}:${base_version}"
diff --git a/.github/workflows/release.yml b/.github/workflows/release.yml
index 901dece924..41ffbfa87d 100644
--- a/.github/workflows/release.yml
+++ b/.github/workflows/release.yml
@@ -210,7 +210,7 @@ jobs:
           echo "::set-env name=TAG::${TAG}"
       - name: Set up env variables
         run: |
-          base_version="2.4.1"
+          base_version="2.5.0"
 
           if [[ "${{ matrix.build_type }}" == "hassio" ]]; then
             build_from="esphome/esphome-hassio-base-${{ matrix.arch }}:${base_version}"
diff --git a/docker/Dockerfile b/docker/Dockerfile
index 8845c9f58c..c843f2f098 100644
--- a/docker/Dockerfile
+++ b/docker/Dockerfile
@@ -1,4 +1,4 @@
-ARG BUILD_FROM=esphome/esphome-base-amd64:2.4.1
+ARG BUILD_FROM=esphome/esphome-base-amd64:2.5.0
 FROM ${BUILD_FROM}
 
 # First install requirements to leverage caching when requirements don't change
diff --git a/docker/Dockerfile.dev b/docker/Dockerfile.dev
index 032e29ae30..b3578e16b6 100644
--- a/docker/Dockerfile.dev
+++ b/docker/Dockerfile.dev
@@ -1,4 +1,4 @@
-FROM esphome/esphome-base-amd64:2.4.1
+FROM esphome/esphome-base-amd64:2.5.0
 
 COPY . .
 
diff --git a/docker/Dockerfile.lint b/docker/Dockerfile.lint
index 2d34f300e3..9a29c5066f 100644
--- a/docker/Dockerfile.lint
+++ b/docker/Dockerfile.lint
@@ -1,4 +1,4 @@
-FROM esphome/esphome-lint-base:2.4.1
+FROM esphome/esphome-lint-base:2.5.0
 
 COPY requirements.txt requirements_test.txt /
 RUN pip3 install --no-cache-dir -r /requirements.txt -r /requirements_test.txt
diff --git a/esphome/const.py b/esphome/const.py
index 52fdd8c780..a3b953397a 100644
--- a/esphome/const.py
+++ b/esphome/const.py
@@ -25,6 +25,7 @@ ARDUINO_VERSION_ESP32 = {
 # See also https://github.com/platformio/platform-espressif8266/releases
 ARDUINO_VERSION_ESP8266 = {
     'dev': 'https://github.com/platformio/platform-espressif8266.git',
+    '2.7.3': 'espressif8266@2.6.1',
     '2.7.2': 'espressif8266@2.6.0',
     '2.7.1': 'espressif8266@2.5.3',
     '2.7.0': 'espressif8266@2.5.0',
diff --git a/esphome/core_config.py b/esphome/core_config.py
index ff959fae27..b0d0c55399 100644
--- a/esphome/core_config.py
+++ b/esphome/core_config.py
@@ -44,7 +44,7 @@ validate_platform = cv.one_of(*ESP_PLATFORMS, upper=True)
 
 PLATFORMIO_ESP8266_LUT = {
     **ARDUINO_VERSION_ESP8266,
-    'RECOMMENDED': ARDUINO_VERSION_ESP8266['2.7.2'],
+    'RECOMMENDED': ARDUINO_VERSION_ESP8266['2.7.3'],
     'LATEST': 'espressif8266',
     'DEV': ARDUINO_VERSION_ESP8266['dev'],
 }