diff --git a/esphome/components/ledc/ledc_output.cpp b/esphome/components/ledc/ledc_output.cpp
index 34cf4cd1f6..d6241dd5b0 100644
--- a/esphome/components/ledc/ledc_output.cpp
+++ b/esphome/components/ledc/ledc_output.cpp
@@ -8,6 +8,20 @@
 #endif
 #include <driver/ledc.h>
 
+#define CLOCK_FREQUENCY 80e6f
+
+#ifdef USE_ARDUINO
+#ifdef SOC_LEDC_SUPPORT_XTAL_CLOCK
+#undef CLOCK_FREQUENCY
+// starting with ESP32 Arduino 2.0.2, the 40MHz crystal is used as clock by default if supported
+#define CLOCK_FREQUENCY 40e6f
+#endif
+#else
+#define DEFAULT_CLK LEDC_USE_APB_CLK
+#endif
+
+static const uint8_t SETUP_ATTEMPT_COUNT_MAX = 5;
+
 namespace esphome {
 namespace ledc {
 
@@ -26,11 +40,11 @@ inline ledc_mode_t get_speed_mode(uint8_t) { return LEDC_LOW_SPEED_MODE; }
 #endif
 #endif
 
-float ledc_max_frequency_for_bit_depth(uint8_t bit_depth) { return 80e6f / float(1 << bit_depth); }
+float ledc_max_frequency_for_bit_depth(uint8_t bit_depth) { return CLOCK_FREQUENCY / float(1 << bit_depth); }
 
 float ledc_min_frequency_for_bit_depth(uint8_t bit_depth, bool low_frequency) {
   const float max_div_num = ((1 << MAX_RES_BITS) - 1) / (low_frequency ? 32.0f : 256.0f);
-  return 80e6f / (max_div_num * float(1 << bit_depth));
+  return CLOCK_FREQUENCY / (max_div_num * float(1 << bit_depth));
 }
 
 optional<uint8_t> ledc_bit_depth_for_frequency(float frequency) {
@@ -46,6 +60,38 @@ optional<uint8_t> ledc_bit_depth_for_frequency(float frequency) {
   return {};
 }
 
+#ifdef USE_ESP_IDF
+esp_err_t configure_timer_frequency(ledc_mode_t speed_mode, ledc_timer_t timer_num, ledc_channel_t chan_num,
+                                    uint8_t channel, uint8_t &bit_depth, float frequency) {
+  bit_depth = *ledc_bit_depth_for_frequency(frequency);
+  if (bit_depth < 1) {
+    ESP_LOGE(TAG, "Frequency %f can't be achieved with any bit depth", frequency);
+  }
+
+  ledc_timer_config_t timer_conf{};
+  timer_conf.speed_mode = speed_mode;
+  timer_conf.duty_resolution = static_cast<ledc_timer_bit_t>(bit_depth);
+  timer_conf.timer_num = timer_num;
+  timer_conf.freq_hz = (uint32_t) frequency;
+  timer_conf.clk_cfg = DEFAULT_CLK;
+
+  // Configure the time with fallback in case of error
+  int attempt_count_max = SETUP_ATTEMPT_COUNT_MAX;
+  esp_err_t init_result = ESP_FAIL;
+  while (attempt_count_max > 0 && init_result != ESP_OK) {
+    init_result = ledc_timer_config(&timer_conf);
+    if (init_result != ESP_OK) {
+      ESP_LOGW(TAG, "Unable to initialize timer with frequency %.1f and bit depth of %u", frequency, bit_depth);
+      // try again with a lower bit depth
+      timer_conf.duty_resolution = static_cast<ledc_timer_bit_t>(--bit_depth);
+    }
+    attempt_count_max--;
+  }
+
+  return init_result;
+}
+#endif
+
 void LEDCOutput::write_state(float state) {
   if (!initialized_) {
     ESP_LOGW(TAG, "LEDC output hasn't been initialized yet!");
@@ -61,6 +107,7 @@ void LEDCOutput::write_state(float state) {
   auto duty = static_cast<uint32_t>(duty_rounded);
 
 #ifdef USE_ARDUINO
+  ESP_LOGV(TAG, "Setting duty: %u on channel %u", duty, this->channel_);
   ledcWrite(this->channel_, duty);
 #endif
 #ifdef USE_ESP_IDF
@@ -72,6 +119,7 @@ void LEDCOutput::write_state(float state) {
 }
 
 void LEDCOutput::setup() {
+  ESP_LOGV(TAG, "Entering setup...");
 #ifdef USE_ARDUINO
   this->update_frequency(this->frequency_);
   this->turn_off();
@@ -83,19 +131,16 @@ void LEDCOutput::setup() {
   auto timer_num = static_cast<ledc_timer_t>((channel_ % 8) / 2);
   auto chan_num = static_cast<ledc_channel_t>(channel_ % 8);
 
-  bit_depth_ = *ledc_bit_depth_for_frequency(frequency_);
-  if (bit_depth_ < 1) {
-    ESP_LOGW(TAG, "Frequency %f can't be achieved with any bit depth", frequency_);
-    this->status_set_warning();
+  esp_err_t timer_init_result =
+      configure_timer_frequency(speed_mode, timer_num, chan_num, this->channel_, this->bit_depth_, this->frequency_);
+
+  if (timer_init_result != ESP_OK) {
+    ESP_LOGE(TAG, "Frequency %f can't be achieved with computed bit depth %u", this->frequency_, this->bit_depth_);
+    this->status_set_error();
+    return;
   }
 
-  ledc_timer_config_t timer_conf{};
-  timer_conf.speed_mode = speed_mode;
-  timer_conf.duty_resolution = static_cast<ledc_timer_bit_t>(bit_depth_);
-  timer_conf.timer_num = timer_num;
-  timer_conf.freq_hz = (uint32_t) frequency_;
-  timer_conf.clk_cfg = LEDC_AUTO_CLK;
-  ledc_timer_config(&timer_conf);
+  ESP_LOGV(TAG, "Configured frequency %f with a bit depth of %u bits", this->frequency_, this->bit_depth_);
 
   ledc_channel_config_t chan_conf{};
   chan_conf.gpio_num = pin_->get_pin();
@@ -107,6 +152,7 @@ void LEDCOutput::setup() {
   chan_conf.hpoint = 0;
   ledc_channel_config(&chan_conf);
   initialized_ = true;
+  this->status_clear_error();
 #endif
 }
 
@@ -114,36 +160,80 @@ void LEDCOutput::dump_config() {
   ESP_LOGCONFIG(TAG, "LEDC Output:");
   LOG_PIN("  Pin ", this->pin_);
   ESP_LOGCONFIG(TAG, "  LEDC Channel: %u", this->channel_);
-  ESP_LOGCONFIG(TAG, "  Frequency: %.1f Hz", this->frequency_);
+  ESP_LOGCONFIG(TAG, "  PWM Frequency: %.1f Hz", this->frequency_);
+  ESP_LOGCONFIG(TAG, "  Bit depth: %u", this->bit_depth_);
+  ESP_LOGV(TAG, "  Max frequency for bit depth: %f", ledc_max_frequency_for_bit_depth(this->bit_depth_));
+  ESP_LOGV(TAG, "  Min frequency for bit depth: %f",
+           ledc_min_frequency_for_bit_depth(this->bit_depth_, (this->frequency_ < 100)));
+  ESP_LOGV(TAG, "  Max frequency for bit depth-1: %f", ledc_max_frequency_for_bit_depth(this->bit_depth_ - 1));
+  ESP_LOGV(TAG, "  Min frequency for bit depth-1: %f",
+           ledc_min_frequency_for_bit_depth(this->bit_depth_ - 1, (this->frequency_ < 100)));
+  ESP_LOGV(TAG, "  Max frequency for bit depth+1: %f", ledc_max_frequency_for_bit_depth(this->bit_depth_ + 1));
+  ESP_LOGV(TAG, "  Min frequency for bit depth+1: %f",
+           ledc_min_frequency_for_bit_depth(this->bit_depth_ + 1, (this->frequency_ < 100)));
+  ESP_LOGV(TAG, "  Max res bits: %d", MAX_RES_BITS);
+  ESP_LOGV(TAG, "  Clock frequency: %f", CLOCK_FREQUENCY);
 }
 
 void LEDCOutput::update_frequency(float frequency) {
   auto bit_depth_opt = ledc_bit_depth_for_frequency(frequency);
   if (!bit_depth_opt.has_value()) {
-    ESP_LOGW(TAG, "Frequency %f can't be achieved with any bit depth", frequency);
-    this->status_set_warning();
+    ESP_LOGE(TAG, "Frequency %f can't be achieved with any bit depth", this->frequency_);
+    this->status_set_error();
   }
   this->bit_depth_ = bit_depth_opt.value_or(8);
   this->frequency_ = frequency;
 #ifdef USE_ARDUINO
-  ledcSetup(this->channel_, frequency, this->bit_depth_);
-  initialized_ = true;
+  ESP_LOGV(TAG, "Using Arduino API - Trying to define channel, frequency and bit depth...");
+  u_int32_t configured_frequency = 0;
+
+  // Configure LEDC channel, frequency and bit depth with fallback
+  int attempt_count_max = SETUP_ATTEMPT_COUNT_MAX;
+  while (attempt_count_max > 0 && configured_frequency == 0) {
+    ESP_LOGV(TAG, "Trying initialize channel %u with frequency %.1f and bit depth of %u...", this->channel_,
+             this->frequency_, this->bit_depth_);
+    configured_frequency = ledcSetup(this->channel_, frequency, this->bit_depth_);
+    if (configured_frequency != 0) {
+      initialized_ = true;
+      this->status_clear_error();
+      ESP_LOGV(TAG, "Configured frequency: %u with bit depth: %u", configured_frequency, this->bit_depth_);
+    } else {
+      ESP_LOGW(TAG, "Unable to initialize channel %u with frequency %.1f and bit depth of %u", this->channel_,
+               this->frequency_, this->bit_depth_);
+      // try again with a lower bit depth
+      this->bit_depth_--;
+    }
+    attempt_count_max--;
+  }
+
+  if (configured_frequency == 0) {
+    ESP_LOGE(TAG, "Permanently failed to initialize channel %u with frequency %.1f and bit depth of %u", this->channel_,
+             this->frequency_, this->bit_depth_);
+    this->status_set_error();
+    return;
+  }
+
 #endif  // USE_ARDUINO
 #ifdef USE_ESP_IDF
   if (!initialized_) {
     ESP_LOGW(TAG, "LEDC output hasn't been initialized yet!");
     return;
   }
+
   auto speed_mode = get_speed_mode(channel_);
   auto timer_num = static_cast<ledc_timer_t>((channel_ % 8) / 2);
+  auto chan_num = static_cast<ledc_channel_t>(channel_ % 8);
 
-  ledc_timer_config_t timer_conf{};
-  timer_conf.speed_mode = speed_mode;
-  timer_conf.duty_resolution = static_cast<ledc_timer_bit_t>(bit_depth_);
-  timer_conf.timer_num = timer_num;
-  timer_conf.freq_hz = (uint32_t) frequency_;
-  timer_conf.clk_cfg = LEDC_AUTO_CLK;
-  ledc_timer_config(&timer_conf);
+  esp_err_t timer_init_result =
+      configure_timer_frequency(speed_mode, timer_num, chan_num, this->channel_, this->bit_depth_, this->frequency_);
+
+  if (timer_init_result != ESP_OK) {
+    ESP_LOGE(TAG, "Frequency %f can't be achieved with computed bit depth %u", this->frequency_, this->bit_depth_);
+    this->status_set_error();
+    return;
+  }
+
+  this->status_clear_error();
 #endif
   // re-apply duty
   this->write_state(this->duty_);