diff --git a/esphome/components/light/addressable_light_effect.h b/esphome/components/light/addressable_light_effect.h
index e357d7c136..9cdc9628c6 100644
--- a/esphome/components/light/addressable_light_effect.h
+++ b/esphome/components/light/addressable_light_effect.h
@@ -50,19 +50,19 @@ class AddressableLightEffect : public LightEffect {
 
 class AddressableLambdaLightEffect : public AddressableLightEffect {
  public:
-  AddressableLambdaLightEffect(const std::string &name, const std::function<void(AddressableLight &)> &f,
+  AddressableLambdaLightEffect(const std::string &name, const std::function<void(AddressableLight &, ESPColor)> &f,
                                uint32_t update_interval)
       : AddressableLightEffect(name), f_(f), update_interval_(update_interval) {}
   void apply(AddressableLight &it, const ESPColor &current_color) override {
     const uint32_t now = millis();
     if (now - this->last_run_ >= this->update_interval_) {
       this->last_run_ = now;
-      this->f_(it);
+      this->f_(it, current_color);
     }
   }
 
  protected:
-  std::function<void(AddressableLight &)> f_;
+  std::function<void(AddressableLight &, ESPColor)> f_;
   uint32_t update_interval_;
   uint32_t last_run_{0};
 };
diff --git a/esphome/components/light/effects.py b/esphome/components/light/effects.py
index eb4e196d4e..c2250e7e0c 100644
--- a/esphome/components/light/effects.py
+++ b/esphome/components/light/effects.py
@@ -11,7 +11,7 @@ from .types import LambdaLightEffect, RandomLightEffect, StrobeLightEffect, \
     FlickerLightEffect, AddressableRainbowLightEffect, AddressableColorWipeEffect, \
     AddressableColorWipeEffectColor, AddressableScanEffect, AddressableTwinkleEffect, \
     AddressableRandomTwinkleEffect, AddressableFireworksEffect, AddressableFlickerEffect, \
-    AutomationLightEffect
+    AutomationLightEffect, ESPColor
 
 CONF_ADD_LED_INTERVAL = 'add_led_interval'
 CONF_REVERSE = 'reverse'
@@ -129,7 +129,7 @@ def flicker_effect_to_code(config, effect_id):
     cv.Optional(CONF_UPDATE_INTERVAL, default='0ms'): cv.positive_time_period_milliseconds,
 })
 def addressable_lambda_effect_to_code(config, effect_id):
-    args = [(AddressableLightRef, 'it')]
+    args = [(AddressableLightRef, 'it'), (ESPColor, 'current_color')]
     lambda_ = yield cg.process_lambda(config[CONF_LAMBDA], args, return_type=cg.void)
     var = cg.new_Pvariable(effect_id, config[CONF_NAME], lambda_,
                            config[CONF_UPDATE_INTERVAL])
diff --git a/esphome/components/light/types.py b/esphome/components/light/types.py
index 185105831d..fb88d021f2 100644
--- a/esphome/components/light/types.py
+++ b/esphome/components/light/types.py
@@ -9,6 +9,8 @@ AddressableLightState = light_ns.class_('LightState', LightState)
 LightOutput = light_ns.class_('LightOutput')
 AddressableLight = light_ns.class_('AddressableLight', cg.Component)
 AddressableLightRef = AddressableLight.operator('ref')
+
+ESPColor = light_ns.class_('ESPColor')
 LightColorValues = light_ns.class_('LightColorValues')
 
 # Actions
diff --git a/tests/test1.yaml b/tests/test1.yaml
index 62773b68c8..5ffd8180fc 100644
--- a/tests/test1.yaml
+++ b/tests/test1.yaml
@@ -893,6 +893,11 @@ light:
         name: Flicker Effect With Custom Values
         update_interval: 16ms
         intensity: 5%
+    - addressable_lambda:
+          name: "Test For Custom Lambda Effect"
+          lambda: |-
+            it[0] = current_color;
+                
     - automation:
         name: Custom Effect
         sequence: