diff --git a/esphome/components/rotary_encoder/rotary_encoder.h b/esphome/components/rotary_encoder/rotary_encoder.h
index b627a4e57f..4220645478 100644
--- a/esphome/components/rotary_encoder/rotary_encoder.h
+++ b/esphome/components/rotary_encoder/rotary_encoder.h
@@ -2,6 +2,7 @@
 
 #include "esphome/core/component.h"
 #include "esphome/core/esphal.h"
+#include "esphome/core/automation.h"
 #include "esphome/components/sensor/sensor.h"
 
 namespace esphome {
@@ -43,6 +44,12 @@ class RotaryEncoderSensor : public sensor::Sensor, public Component {
    */
   void set_resolution(RotaryEncoderResolution mode);
 
+  /// Manually set the value of the counter.
+  void set_value(int value) {
+    this->store_.counter = value;
+    this->loop();
+  }
+
   void set_reset_pin(GPIOPin *pin_i) { this->pin_i_ = pin_i; }
   void set_min_value(int32_t min_value);
   void set_max_value(int32_t max_value);
@@ -63,5 +70,15 @@ class RotaryEncoderSensor : public sensor::Sensor, public Component {
   RotaryEncoderSensorStore store_{};
 };
 
+template<typename... Ts> class RotaryEncoderSetValueAction : public Action<Ts...> {
+ public:
+  RotaryEncoderSetValueAction(RotaryEncoderSensor *encoder) : encoder_(encoder) {}
+  TEMPLATABLE_VALUE(int, value)
+  void play(Ts... x) override { this->encoder_->set_value(this->value_.value(x...)); }
+
+ protected:
+  RotaryEncoderSensor *encoder_;
+};
+
 }  // namespace rotary_encoder
 }  // namespace esphome
diff --git a/esphome/components/rotary_encoder/sensor.py b/esphome/components/rotary_encoder/sensor.py
index fb4881e18b..742096cd5a 100644
--- a/esphome/components/rotary_encoder/sensor.py
+++ b/esphome/components/rotary_encoder/sensor.py
@@ -1,9 +1,9 @@
 import esphome.codegen as cg
 import esphome.config_validation as cv
-from esphome import pins
+from esphome import pins, automation
 from esphome.components import sensor
 from esphome.const import CONF_ID, CONF_RESOLUTION, CONF_MIN_VALUE, CONF_MAX_VALUE, UNIT_STEPS, \
-    ICON_ROTATE_RIGHT
+    ICON_ROTATE_RIGHT, CONF_VALUE
 
 rotary_encoder_ns = cg.esphome_ns.namespace('rotary_encoder')
 RotaryEncoderResolution = rotary_encoder_ns.enum('RotaryEncoderResolution')
@@ -18,6 +18,8 @@ CONF_PIN_B = 'pin_b'
 CONF_PIN_RESET = 'pin_reset'
 
 RotaryEncoderSensor = rotary_encoder_ns.class_('RotaryEncoderSensor', sensor.Sensor, cg.Component)
+RotaryEncoderSetValueAction = rotary_encoder_ns.class_('RotaryEncoderSetValueAction',
+                                                       automation.Action)
 
 
 def validate_min_max_value(config):
@@ -60,3 +62,16 @@ def to_code(config):
         cg.add(var.set_min_value(config[CONF_MIN_VALUE]))
     if CONF_MAX_VALUE in config:
         cg.add(var.set_max_value(config[CONF_MAX_VALUE]))
+
+
+@automation.register_action('sensor.rotary_encoder.set_value', RotaryEncoderSetValueAction,
+                            cv.Schema({
+                                cv.Required(CONF_ID): cv.use_id(sensor.Sensor),
+                                cv.Required(CONF_VALUE): cv.templatable(cv.int_),
+                            }))
+def sensor_template_publish_to_code(config, action_id, template_arg, args):
+    paren = yield cg.get_variable(config[CONF_ID])
+    var = cg.new_Pvariable(action_id, template_arg, paren)
+    template_ = yield cg.templatable(config[CONF_VALUE], args, int)
+    cg.add(var.set_value(template_))
+    yield var
diff --git a/tests/test1.yaml b/tests/test1.yaml
index f2adaa19fd..f35b9caf2f 100644
--- a/tests/test1.yaml
+++ b/tests/test1.yaml
@@ -491,6 +491,7 @@ sensor:
     update_interval: 15s
   - platform: rotary_encoder
     name: "Rotary Encoder"
+    id: rotary_encoder1
     pin_a: GPIO23
     pin_b: GPIO24
     pin_reset: GPIO25
@@ -501,6 +502,13 @@ sensor:
     resolution: 4
     min_value: -10
     max_value: 30
+    on_value:
+      - sensor.rotary_encoder.set_value:
+          id: rotary_encoder1
+          value: 10
+      - sensor.rotary_encoder.set_value:
+          id: rotary_encoder1
+          value: !lambda 'return -1;'
   - platform: pulse_width
     name: Pulse Width
     pin: GPIO12