diff --git a/esphome/components/api/__init__.py b/esphome/components/api/__init__.py
index b0608a69dd..6b2e7fd06b 100644
--- a/esphome/components/api/__init__.py
+++ b/esphome/components/api/__init__.py
@@ -121,7 +121,7 @@ async def to_code(config):
         decoded = base64.b64decode(conf[CONF_KEY])
         cg.add(var.set_noise_psk(list(decoded)))
         cg.add_define("USE_API_NOISE")
-        cg.add_library("esphome/noise-c", "0.1.3")
+        cg.add_library("esphome/noise-c", "0.1.4")
     else:
         cg.add_define("USE_API_PLAINTEXT")
 
diff --git a/esphome/components/api/api_connection.cpp b/esphome/components/api/api_connection.cpp
index 47171ba50f..c87ccf4dc0 100644
--- a/esphome/components/api/api_connection.cpp
+++ b/esphome/components/api/api_connection.cpp
@@ -78,6 +78,8 @@ void APIConnection::loop() {
     on_fatal_error();
     if (err == APIError::SOCKET_READ_FAILED && errno == ECONNRESET) {
       ESP_LOGW(TAG, "%s: Connection reset", client_info_.c_str());
+    } else if (err == APIError::CONNECTION_CLOSED) {
+      ESP_LOGW(TAG, "%s: Connection closed", client_info_.c_str());
     } else {
       ESP_LOGW(TAG, "%s: Reading failed: %s errno=%d", client_info_.c_str(), api_error_to_str(err), errno);
     }
diff --git a/esphome/components/api/api_frame_helper.cpp b/esphome/components/api/api_frame_helper.cpp
index 4971272f41..c0e37ec90d 100644
--- a/esphome/components/api/api_frame_helper.cpp
+++ b/esphome/components/api/api_frame_helper.cpp
@@ -10,7 +10,7 @@ namespace api {
 
 static const char *const TAG = "api.socket";
 
-/// Is the given return value (from read/write syscalls) a wouldblock error?
+/// Is the given return value (from write syscalls) a wouldblock error?
 bool is_would_block(ssize_t ret) {
   if (ret == -1) {
     return errno == EWOULDBLOCK || errno == EAGAIN;
@@ -64,6 +64,8 @@ const char *api_error_to_str(APIError err) {
     return "HANDSHAKESTATE_SPLIT_FAILED";
   } else if (err == APIError::BAD_HANDSHAKE_ERROR_BYTE) {
     return "BAD_HANDSHAKE_ERROR_BYTE";
+  } else if (err == APIError::CONNECTION_CLOSED) {
+    return "CONNECTION_CLOSED";
   }
   return "UNKNOWN";
 }
@@ -185,12 +187,17 @@ APIError APINoiseFrameHelper::try_read_frame_(ParsedFrame *frame) {
     // no header information yet
     size_t to_read = 3 - rx_header_buf_len_;
     ssize_t received = socket_->read(&rx_header_buf_[rx_header_buf_len_], to_read);
-    if (is_would_block(received)) {
-      return APIError::WOULD_BLOCK;
-    } else if (received == -1) {
+    if (received == -1) {
+      if (errno == EWOULDBLOCK || errno == EAGAIN) {
+        return APIError::WOULD_BLOCK;
+      }
       state_ = State::FAILED;
       HELPER_LOG("Socket read failed with errno %d", errno);
       return APIError::SOCKET_READ_FAILED;
+    } else if (received == 0) {
+      state_ = State::FAILED;
+      HELPER_LOG("Connection closed");
+      return APIError::CONNECTION_CLOSED;
     }
     rx_header_buf_len_ += received;
     if (received != to_read) {
@@ -227,12 +234,17 @@ APIError APINoiseFrameHelper::try_read_frame_(ParsedFrame *frame) {
     // more data to read
     size_t to_read = msg_size - rx_buf_len_;
     ssize_t received = socket_->read(&rx_buf_[rx_buf_len_], to_read);
-    if (is_would_block(received)) {
-      return APIError::WOULD_BLOCK;
-    } else if (received == -1) {
+    if (received == -1) {
+      if (errno == EWOULDBLOCK || errno == EAGAIN) {
+        return APIError::WOULD_BLOCK;
+      }
       state_ = State::FAILED;
       HELPER_LOG("Socket read failed with errno %d", errno);
       return APIError::SOCKET_READ_FAILED;
+    } else if (received == 0) {
+      state_ = State::FAILED;
+      HELPER_LOG("Connection closed");
+      return APIError::CONNECTION_CLOSED;
     }
     rx_buf_len_ += received;
     if (received != to_read) {
@@ -778,12 +790,17 @@ APIError APIPlaintextFrameHelper::try_read_frame_(ParsedFrame *frame) {
   while (!rx_header_parsed_) {
     uint8_t data;
     ssize_t received = socket_->read(&data, 1);
-    if (is_would_block(received)) {
-      return APIError::WOULD_BLOCK;
-    } else if (received == -1) {
+    if (received == -1) {
+      if (errno == EWOULDBLOCK || errno == EAGAIN) {
+        return APIError::WOULD_BLOCK;
+      }
       state_ = State::FAILED;
       HELPER_LOG("Socket read failed with errno %d", errno);
       return APIError::SOCKET_READ_FAILED;
+    } else if (received == 0) {
+      state_ = State::FAILED;
+      HELPER_LOG("Connection closed");
+      return APIError::CONNECTION_CLOSED;
     }
     rx_header_buf_.push_back(data);
 
@@ -824,12 +841,17 @@ APIError APIPlaintextFrameHelper::try_read_frame_(ParsedFrame *frame) {
     // more data to read
     size_t to_read = rx_header_parsed_len_ - rx_buf_len_;
     ssize_t received = socket_->read(&rx_buf_[rx_buf_len_], to_read);
-    if (is_would_block(received)) {
-      return APIError::WOULD_BLOCK;
-    } else if (received == -1) {
+    if (received == -1) {
+      if (errno == EWOULDBLOCK || errno == EAGAIN) {
+        return APIError::WOULD_BLOCK;
+      }
       state_ = State::FAILED;
       HELPER_LOG("Socket read failed with errno %d", errno);
       return APIError::SOCKET_READ_FAILED;
+    } else if (received == 0) {
+      state_ = State::FAILED;
+      HELPER_LOG("Connection closed");
+      return APIError::CONNECTION_CLOSED;
     }
     rx_buf_len_ += received;
     if (received != to_read) {
diff --git a/esphome/components/api/api_frame_helper.h b/esphome/components/api/api_frame_helper.h
index 7fdb26fd40..57e3c961d5 100644
--- a/esphome/components/api/api_frame_helper.h
+++ b/esphome/components/api/api_frame_helper.h
@@ -53,6 +53,7 @@ enum class APIError : int {
   HANDSHAKESTATE_SETUP_FAILED = 1019,
   HANDSHAKESTATE_SPLIT_FAILED = 1020,
   BAD_HANDSHAKE_ERROR_BYTE = 1021,
+  CONNECTION_CLOSED = 1022,
 };
 
 const char *api_error_to_str(APIError err);
diff --git a/esphome/components/bme680_bsec/__init__.py b/esphome/components/bme680_bsec/__init__.py
index 38da18d702..2f844fa666 100644
--- a/esphome/components/bme680_bsec/__init__.py
+++ b/esphome/components/bme680_bsec/__init__.py
@@ -67,4 +67,4 @@ async def to_code(config):
         cg.add_library("SPI", None)
 
     cg.add_define("USE_BSEC")
-    cg.add_library("BSEC Software Library", "1.6.1480")
+    cg.add_library("boschsensortec/BSEC Software Library", "1.6.1480")
diff --git a/esphome/components/climate/climate.cpp b/esphome/components/climate/climate.cpp
index 34e6328d8a..ebea20ed1f 100644
--- a/esphome/components/climate/climate.cpp
+++ b/esphome/components/climate/climate.cpp
@@ -440,7 +440,11 @@ void Climate::set_visual_max_temperature_override(float visual_max_temperature_o
 void Climate::set_visual_temperature_step_override(float visual_temperature_step_override) {
   this->visual_temperature_step_override_ = visual_temperature_step_override;
 }
+#pragma GCC diagnostic push
+#pragma GCC diagnostic ignored "-Wdeprecated-declarations"
 Climate::Climate(const std::string &name) : EntityBase(name) {}
+#pragma GCC diagnostic pop
+
 Climate::Climate() : Climate("") {}
 ClimateCall Climate::make_call() { return ClimateCall(this); }
 
diff --git a/esphome/components/esp8266/__init__.py b/esphome/components/esp8266/__init__.py
index a5323db8bf..ddaeee6ab7 100644
--- a/esphome/components/esp8266/__init__.py
+++ b/esphome/components/esp8266/__init__.py
@@ -65,7 +65,7 @@ RECOMMENDED_ARDUINO_FRAMEWORK_VERSION = cv.Version(2, 7, 4)
 #  - https://api.registry.platformio.org/v3/packages/platformio/platform/espressif8266
 ARDUINO_2_PLATFORM_VERSION = cv.Version(2, 6, 2)
 # for arduino 3 framework versions
-ARDUINO_3_PLATFORM_VERSION = cv.Version(3, 0, 2)
+ARDUINO_3_PLATFORM_VERSION = cv.Version(3, 2, 0)
 
 
 def _arduino_check_versions(value):
diff --git a/esphome/components/light/addressable_light.h b/esphome/components/light/addressable_light.h
index fea7508515..2b2c0ca7e4 100644
--- a/esphome/components/light/addressable_light.h
+++ b/esphome/components/light/addressable_light.h
@@ -22,6 +22,12 @@ using ESPColor ESPDEPRECATED("esphome::light::ESPColor is deprecated, use esphom
 /// Convert the color information from a `LightColorValues` object to a `Color` object (does not apply brightness).
 Color color_from_light_color_values(LightColorValues val);
 
+/// Use a custom state class for addressable lights, to allow type system to discriminate between addressable and
+/// non-addressable lights.
+class AddressableLightState : public LightState {
+  using LightState::LightState;
+};
+
 class AddressableLight : public LightOutput, public Component {
  public:
   virtual int32_t size() const = 0;
diff --git a/esphome/components/light/types.py b/esphome/components/light/types.py
index cf544e5435..bc20cd5555 100644
--- a/esphome/components/light/types.py
+++ b/esphome/components/light/types.py
@@ -4,10 +4,9 @@ from esphome import automation
 # Base
 light_ns = cg.esphome_ns.namespace("light")
 LightState = light_ns.class_("LightState", cg.EntityBase, cg.Component)
-# Fake class for addressable lights
-AddressableLightState = light_ns.class_("LightState", LightState)
+AddressableLightState = light_ns.class_("AddressableLightState", LightState)
 LightOutput = light_ns.class_("LightOutput")
-AddressableLight = light_ns.class_("AddressableLight", cg.Component)
+AddressableLight = light_ns.class_("AddressableLight", LightOutput, cg.Component)
 AddressableLightRef = AddressableLight.operator("ref")
 
 Color = cg.esphome_ns.class_("Color")
diff --git a/esphome/components/mqtt/__init__.py b/esphome/components/mqtt/__init__.py
index 8f02f8d437..3d52dab67f 100644
--- a/esphome/components/mqtt/__init__.py
+++ b/esphome/components/mqtt/__init__.py
@@ -215,7 +215,7 @@ async def to_code(config):
     await cg.register_component(var, config)
 
     # https://github.com/OttoWinter/async-mqtt-client/blob/master/library.json
-    cg.add_library("ottowinter/AsyncMqttClient-esphome", "0.8.4")
+    cg.add_library("ottowinter/AsyncMqttClient-esphome", "0.8.6")
     cg.add_define("USE_MQTT")
     cg.add_global(mqtt_ns.using)
 
diff --git a/esphome/components/mqtt/mqtt_fan.cpp b/esphome/components/mqtt/mqtt_fan.cpp
index 898183cc58..1703343a77 100644
--- a/esphome/components/mqtt/mqtt_fan.cpp
+++ b/esphome/components/mqtt/mqtt_fan.cpp
@@ -88,9 +88,12 @@ void MQTTFanComponent::setup() {
 
   if (this->state_->get_traits().supports_speed()) {
     this->subscribe(this->get_speed_command_topic(), [this](const std::string &topic, const std::string &payload) {
+#pragma GCC diagnostic push
+#pragma GCC diagnostic ignored "-Wdeprecated-declarations"
       this->state_->make_call()
           .set_speed(payload.c_str())  // NOLINT(clang-diagnostic-deprecated-declarations)
           .perform();
+#pragma GCC diagnostic pop
     });
   }
 
@@ -145,6 +148,8 @@ bool MQTTFanComponent::publish_state() {
   }
   if (traits.supports_speed()) {
     const char *payload;
+#pragma GCC diagnostic push
+#pragma GCC diagnostic ignored "-Wdeprecated-declarations"
     // NOLINTNEXTLINE(clang-diagnostic-deprecated-declarations)
     switch (fan::speed_level_to_enum(this->state_->speed, traits.supported_speed_count())) {
       case FAN_SPEED_LOW: {  // NOLINT(clang-diagnostic-deprecated-declarations)
@@ -161,6 +166,7 @@ bool MQTTFanComponent::publish_state() {
         break;
       }
     }
+#pragma GCC diagnostic pop
     bool success = this->publish(this->get_speed_state_topic(), payload);
     failed = failed || !success;
   }
diff --git a/esphome/components/ota/ota_backend.h b/esphome/components/ota/ota_backend.h
index c253e009c6..5c5b61a278 100644
--- a/esphome/components/ota/ota_backend.h
+++ b/esphome/components/ota/ota_backend.h
@@ -12,6 +12,7 @@ class OTABackend {
   virtual OTAResponseTypes write(uint8_t *data, size_t len) = 0;
   virtual OTAResponseTypes end() = 0;
   virtual void abort() = 0;
+  virtual bool supports_compression() = 0;
 };
 
 }  // namespace ota
diff --git a/esphome/components/ota/ota_backend_arduino_esp32.h b/esphome/components/ota/ota_backend_arduino_esp32.h
index 6b712502fb..f86a70d678 100644
--- a/esphome/components/ota/ota_backend_arduino_esp32.h
+++ b/esphome/components/ota/ota_backend_arduino_esp32.h
@@ -15,6 +15,7 @@ class ArduinoESP32OTABackend : public OTABackend {
   OTAResponseTypes write(uint8_t *data, size_t len) override;
   OTAResponseTypes end() override;
   void abort() override;
+  bool supports_compression() override { return false; }
 };
 
 }  // namespace ota
diff --git a/esphome/components/ota/ota_backend_arduino_esp8266.h b/esphome/components/ota/ota_backend_arduino_esp8266.h
index d1195af911..329f2cf0f2 100644
--- a/esphome/components/ota/ota_backend_arduino_esp8266.h
+++ b/esphome/components/ota/ota_backend_arduino_esp8266.h
@@ -5,6 +5,7 @@
 
 #include "ota_component.h"
 #include "ota_backend.h"
+#include "esphome/core/macros.h"
 
 namespace esphome {
 namespace ota {
@@ -16,6 +17,11 @@ class ArduinoESP8266OTABackend : public OTABackend {
   OTAResponseTypes write(uint8_t *data, size_t len) override;
   OTAResponseTypes end() override;
   void abort() override;
+#if ARDUINO_VERSION_CODE >= VERSION_CODE(2, 7, 0)
+  bool supports_compression() override { return true; }
+#else
+  bool supports_compression() override { return false; }
+#endif
 };
 
 }  // namespace ota
diff --git a/esphome/components/ota/ota_backend_esp_idf.h b/esphome/components/ota/ota_backend_esp_idf.h
index 49c6e124fa..af09d0d693 100644
--- a/esphome/components/ota/ota_backend_esp_idf.h
+++ b/esphome/components/ota/ota_backend_esp_idf.h
@@ -17,6 +17,7 @@ class IDFOTABackend : public OTABackend {
   OTAResponseTypes write(uint8_t *data, size_t len) override;
   OTAResponseTypes end() override;
   void abort() override;
+  bool supports_compression() override { return false; }
 
  private:
   esp_ota_handle_t update_handle_{0};
diff --git a/esphome/components/ota/ota_component.cpp b/esphome/components/ota/ota_component.cpp
index 89bee17452..e49c108320 100644
--- a/esphome/components/ota/ota_component.cpp
+++ b/esphome/components/ota/ota_component.cpp
@@ -104,6 +104,8 @@ void OTAComponent::loop() {
   }
 }
 
+static const uint8_t FEATURE_SUPPORTS_COMPRESSION = 0x01;
+
 void OTAComponent::handle_() {
   OTAResponseTypes error_code = OTA_RESPONSE_ERROR_UNKNOWN;
   bool update_started = false;
@@ -154,6 +156,8 @@ void OTAComponent::handle_() {
   buf[1] = OTA_VERSION_1_0;
   this->writeall_(buf, 2);
 
+  backend = make_ota_backend();
+
   // Read features - 1 byte
   if (!this->readall_(buf, 1)) {
     ESP_LOGW(TAG, "Reading features failed!");
@@ -164,6 +168,10 @@ void OTAComponent::handle_() {
 
   // Acknowledge header - 1 byte
   buf[0] = OTA_RESPONSE_HEADER_OK;
+  if ((ota_features & FEATURE_SUPPORTS_COMPRESSION) != 0 && backend->supports_compression()) {
+    buf[0] = OTA_RESPONSE_SUPPORTS_COMPRESSION;
+  }
+
   this->writeall_(buf, 1);
 
 #ifdef USE_OTA_PASSWORD
@@ -241,7 +249,6 @@ void OTAComponent::handle_() {
   }
   ESP_LOGV(TAG, "OTA size is %u bytes", ota_size);
 
-  backend = make_ota_backend();
   error_code = backend->begin(ota_size);
   if (error_code != OTA_RESPONSE_OK)
     goto error;
@@ -275,6 +282,12 @@ void OTAComponent::handle_() {
       }
       ESP_LOGW(TAG, "Error receiving data for update, errno: %d", errno);
       goto error;
+    } else if (read == 0) {
+      // $ man recv
+      // "When  a  stream socket peer has performed an orderly shutdown, the return value will
+      // be 0 (the traditional "end-of-file" return)."
+      ESP_LOGW(TAG, "Remote end closed connection");
+      goto error;
     }
 
     error_code = backend->write(buf, read);
@@ -362,6 +375,9 @@ bool OTAComponent::readall_(uint8_t *buf, size_t len) {
       }
       ESP_LOGW(TAG, "Failed to read %d bytes of data, errno: %d", len, errno);
       return false;
+    } else if (read == 0) {
+      ESP_LOGW(TAG, "Remote closed connection");
+      return false;
     } else {
       at += read;
     }
diff --git a/esphome/components/ota/ota_component.h b/esphome/components/ota/ota_component.h
index e08e187df6..5647d52eeb 100644
--- a/esphome/components/ota/ota_component.h
+++ b/esphome/components/ota/ota_component.h
@@ -19,6 +19,7 @@ enum OTAResponseTypes {
   OTA_RESPONSE_BIN_MD5_OK = 67,
   OTA_RESPONSE_RECEIVE_OK = 68,
   OTA_RESPONSE_UPDATE_END_OK = 69,
+  OTA_RESPONSE_SUPPORTS_COMPRESSION = 70,
 
   OTA_RESPONSE_ERROR_MAGIC = 128,
   OTA_RESPONSE_ERROR_UPDATE_PREPARE = 129,
diff --git a/esphome/components/socket/lwip_raw_tcp_impl.cpp b/esphome/components/socket/lwip_raw_tcp_impl.cpp
index 54dfddac3f..922d895ff4 100644
--- a/esphome/components/socket/lwip_raw_tcp_impl.cpp
+++ b/esphome/components/socket/lwip_raw_tcp_impl.cpp
@@ -320,8 +320,7 @@ class LWIPRawImpl : public Socket {
       return -1;
     }
     if (rx_closed_ && rx_buf_ == nullptr) {
-      errno = ECONNRESET;
-      return -1;
+      return 0;
     }
     if (len == 0) {
       return 0;
@@ -366,6 +365,11 @@ class LWIPRawImpl : public Socket {
       read += copysize;
     }
 
+    if (read == 0) {
+      errno = EWOULDBLOCK;
+      return -1;
+    }
+
     return read;
   }
   ssize_t readv(const struct iovec *iov, int iovcnt) override {
diff --git a/esphome/components/sx1509/__init__.py b/esphome/components/sx1509/__init__.py
index f1b7d5f424..879ced2fb3 100644
--- a/esphome/components/sx1509/__init__.py
+++ b/esphome/components/sx1509/__init__.py
@@ -80,8 +80,8 @@ def validate_mode(value):
 CONF_SX1509 = "sx1509"
 SX1509_PIN_SCHEMA = cv.All(
     {
-        cv.GenerateID(): cv.declare_id(SX1509Component),
-        cv.Required(CONF_SX1509): cv.use_id(SX1509GPIOPin),
+        cv.GenerateID(): cv.declare_id(SX1509GPIOPin),
+        cv.Required(CONF_SX1509): cv.use_id(SX1509Component),
         cv.Required(CONF_NUMBER): cv.int_range(min=0, max=15),
         cv.Optional(CONF_MODE, default={}): cv.All(
             {
diff --git a/esphome/components/tca9548a/tca9548a.cpp b/esphome/components/tca9548a/tca9548a.cpp
index 5117ad8969..e902eb5ed4 100644
--- a/esphome/components/tca9548a/tca9548a.cpp
+++ b/esphome/components/tca9548a/tca9548a.cpp
@@ -22,7 +22,7 @@ i2c::ErrorCode TCA9548AChannel::writev(uint8_t address, i2c::WriteBuffer *buffer
 void TCA9548AComponent::setup() {
   ESP_LOGCONFIG(TAG, "Setting up TCA9548A...");
   uint8_t status = 0;
-  if (!this->read_register(0x00, &status, 1)) {
+  if (this->read_register(0x00, &status, 1) != i2c::ERROR_OK) {
     ESP_LOGI(TAG, "TCA9548A failed");
     this->mark_failed();
     return;
diff --git a/esphome/components/web_server/web_server.cpp b/esphome/components/web_server/web_server.cpp
index e99431be36..44ace38990 100644
--- a/esphome/components/web_server/web_server.cpp
+++ b/esphome/components/web_server/web_server.cpp
@@ -414,6 +414,8 @@ std::string WebServer::fan_json(fan::FanState *obj) {
     const auto traits = obj->get_traits();
     if (traits.supports_speed()) {
       root["speed_level"] = obj->speed;
+#pragma GCC diagnostic push
+#pragma GCC diagnostic ignored "-Wdeprecated-declarations"
       // NOLINTNEXTLINE(clang-diagnostic-deprecated-declarations)
       switch (fan::speed_level_to_enum(obj->speed, traits.supported_speed_count())) {
         case fan::FAN_SPEED_LOW:  // NOLINT(clang-diagnostic-deprecated-declarations)
@@ -426,6 +428,7 @@ std::string WebServer::fan_json(fan::FanState *obj) {
           root["speed"] = "high";
           break;
       }
+#pragma GCC diagnostic pop
     }
     if (obj->get_traits().supports_oscillation())
       root["oscillation"] = obj->oscillating;
@@ -448,7 +451,10 @@ void WebServer::handle_fan_request(AsyncWebServerRequest *request, const UrlMatc
       auto call = obj->turn_on();
       if (request->hasParam("speed")) {
         String speed = request->getParam("speed")->value();
+#pragma GCC diagnostic push
+#pragma GCC diagnostic ignored "-Wdeprecated-declarations"
         call.set_speed(speed.c_str());  // NOLINT(clang-diagnostic-deprecated-declarations)
+#pragma GCC diagnostic pop
       }
       if (request->hasParam("speed_level")) {
         String speed_level = request->getParam("speed_level")->value();
diff --git a/esphome/components/web_server_base/__init__.py b/esphome/components/web_server_base/__init__.py
index 95d59a863e..4da94d990a 100644
--- a/esphome/components/web_server_base/__init__.py
+++ b/esphome/components/web_server_base/__init__.py
@@ -28,4 +28,4 @@ async def to_code(config):
         cg.add_library("FS", None)
         cg.add_library("Update", None)
     # https://github.com/esphome/ESPAsyncWebServer/blob/master/library.json
-    cg.add_library("esphome/ESPAsyncWebServer-esphome", "1.3.0")
+    cg.add_library("esphome/ESPAsyncWebServer-esphome", "2.0.0")
diff --git a/esphome/const.py b/esphome/const.py
index f07c83b32d..37c325465b 100644
--- a/esphome/const.py
+++ b/esphome/const.py
@@ -1,10 +1,13 @@
 """Constants used by esphome."""
 
-__version__ = "2021.10.1"
+__version__ = "2021.10.2"
 
 ALLOWED_NAME_CHARS = "abcdefghijklmnopqrstuvwxyz0123456789-_"
 
-TARGET_PLATFORMS = ["esp32", "esp8266"]
+PLATFORM_ESP32 = "esp32"
+PLATFORM_ESP8266 = "esp8266"
+
+TARGET_PLATFORMS = [PLATFORM_ESP32, PLATFORM_ESP8266]
 TARGET_FRAMEWORKS = ["arduino", "esp-idf"]
 
 # See also https://github.com/platformio/platform-espressif8266/releases
diff --git a/esphome/core/config.py b/esphome/core/config.py
index 3c53d81784..235e0eeb84 100644
--- a/esphome/core/config.py
+++ b/esphome/core/config.py
@@ -29,6 +29,7 @@ from esphome.const import (
     CONF_VERSION,
     KEY_CORE,
     TARGET_PLATFORMS,
+    PLATFORM_ESP8266,
 )
 from esphome.core import CORE, coroutine_with_priority
 from esphome.helpers import copy_file_if_changed, walk_files
@@ -182,9 +183,13 @@ def preload_core_config(config, result):
         if CONF_BOARD_FLASH_MODE in conf:
             plat_conf[CONF_BOARD_FLASH_MODE] = conf.pop(CONF_BOARD_FLASH_MODE)
         if CONF_ARDUINO_VERSION in conf:
-            plat_conf[CONF_FRAMEWORK] = {CONF_TYPE: "arduino"}
+            plat_conf[CONF_FRAMEWORK] = {}
+            if plat != PLATFORM_ESP8266:
+                plat_conf[CONF_FRAMEWORK][CONF_TYPE] = "arduino"
+
             try:
-                cv.Version.parse(conf[CONF_ARDUINO_VERSION])
+                if conf[CONF_ARDUINO_VERSION] not in ("recommended", "latest", "dev"):
+                    cv.Version.parse(conf[CONF_ARDUINO_VERSION])
                 plat_conf[CONF_FRAMEWORK][CONF_VERSION] = conf.pop(CONF_ARDUINO_VERSION)
             except ValueError:
                 plat_conf[CONF_FRAMEWORK][CONF_SOURCE] = conf.pop(CONF_ARDUINO_VERSION)
diff --git a/esphome/core/helpers.cpp b/esphome/core/helpers.cpp
index 780df3ca6d..bc97259a71 100644
--- a/esphome/core/helpers.cpp
+++ b/esphome/core/helpers.cpp
@@ -358,6 +358,7 @@ template<typename T> T clamp(const T val, const T min, const T max) {
     return max;
   return val;
 }
+template uint8_t clamp(uint8_t, uint8_t, uint8_t);
 template float clamp(float, float, float);
 template int clamp(int, int, int);
 
diff --git a/esphome/espota2.py b/esphome/espota2.py
index f8a2fab94c..8f299395dd 100644
--- a/esphome/espota2.py
+++ b/esphome/espota2.py
@@ -4,6 +4,7 @@ import random
 import socket
 import sys
 import time
+import gzip
 
 from esphome.core import EsphomeError
 from esphome.helpers import is_ip_address, resolve_ip_address
@@ -17,6 +18,7 @@ RESPONSE_UPDATE_PREPARE_OK = 66
 RESPONSE_BIN_MD5_OK = 67
 RESPONSE_RECEIVE_OK = 68
 RESPONSE_UPDATE_END_OK = 69
+RESPONSE_SUPPORTS_COMPRESSION = 70
 
 RESPONSE_ERROR_MAGIC = 128
 RESPONSE_ERROR_UPDATE_PREPARE = 129
@@ -34,6 +36,8 @@ OTA_VERSION_1_0 = 1
 
 MAGIC_BYTES = [0x6C, 0x26, 0xF7, 0x5C, 0x45]
 
+FEATURE_SUPPORTS_COMPRESSION = 0x01
+
 _LOGGER = logging.getLogger(__name__)
 
 
@@ -170,11 +174,9 @@ def send_check(sock, data, msg):
 
 
 def perform_ota(sock, password, file_handle, filename):
-    file_md5 = hashlib.md5(file_handle.read()).hexdigest()
-    file_size = file_handle.tell()
+    file_contents = file_handle.read()
+    file_size = len(file_contents)
     _LOGGER.info("Uploading %s (%s bytes)", filename, file_size)
-    file_handle.seek(0)
-    _LOGGER.debug("MD5 of binary is %s", file_md5)
 
     # Enable nodelay, we need it for phase 1
     sock.setsockopt(socket.IPPROTO_TCP, socket.TCP_NODELAY, 1)
@@ -185,8 +187,16 @@ def perform_ota(sock, password, file_handle, filename):
         raise OTAError(f"Unsupported OTA version {version}")
 
     # Features
-    send_check(sock, 0x00, "features")
-    receive_exactly(sock, 1, "features", RESPONSE_HEADER_OK)
+    send_check(sock, FEATURE_SUPPORTS_COMPRESSION, "features")
+    features = receive_exactly(
+        sock, 1, "features", [RESPONSE_HEADER_OK, RESPONSE_SUPPORTS_COMPRESSION]
+    )[0]
+
+    if features == RESPONSE_SUPPORTS_COMPRESSION:
+        upload_contents = gzip.compress(file_contents, compresslevel=9)
+        _LOGGER.info("Compressed to %s bytes", len(upload_contents))
+    else:
+        upload_contents = file_contents
 
     (auth,) = receive_exactly(
         sock, 1, "auth", [RESPONSE_REQUEST_AUTH, RESPONSE_AUTH_OK]
@@ -213,16 +223,20 @@ def perform_ota(sock, password, file_handle, filename):
         send_check(sock, result, "auth result")
         receive_exactly(sock, 1, "auth result", RESPONSE_AUTH_OK)
 
-    file_size_encoded = [
-        (file_size >> 24) & 0xFF,
-        (file_size >> 16) & 0xFF,
-        (file_size >> 8) & 0xFF,
-        (file_size >> 0) & 0xFF,
+    upload_size = len(upload_contents)
+    upload_size_encoded = [
+        (upload_size >> 24) & 0xFF,
+        (upload_size >> 16) & 0xFF,
+        (upload_size >> 8) & 0xFF,
+        (upload_size >> 0) & 0xFF,
     ]
-    send_check(sock, file_size_encoded, "binary size")
+    send_check(sock, upload_size_encoded, "binary size")
     receive_exactly(sock, 1, "binary size", RESPONSE_UPDATE_PREPARE_OK)
 
-    send_check(sock, file_md5, "file checksum")
+    upload_md5 = hashlib.md5(upload_contents).hexdigest()
+    _LOGGER.debug("MD5 of upload is %s", upload_md5)
+
+    send_check(sock, upload_md5, "file checksum")
     receive_exactly(sock, 1, "file checksum", RESPONSE_BIN_MD5_OK)
 
     # Disable nodelay for transfer
@@ -236,7 +250,7 @@ def perform_ota(sock, password, file_handle, filename):
     offset = 0
     progress = ProgressBar()
     while True:
-        chunk = file_handle.read(1024)
+        chunk = upload_contents[offset : offset + 1024]
         if not chunk:
             break
         offset += len(chunk)
@@ -247,7 +261,7 @@ def perform_ota(sock, password, file_handle, filename):
             sys.stderr.write("\n")
             raise OTAError(f"Error sending data: {err}") from err
 
-        progress.update(offset / float(file_size))
+        progress.update(offset / upload_size)
     progress.done()
 
     # Enable nodelay for last checks
diff --git a/esphome/platformio_api.py b/esphome/platformio_api.py
index 054c0cb1b0..70e4430e71 100644
--- a/esphome/platformio_api.py
+++ b/esphome/platformio_api.py
@@ -46,24 +46,31 @@ IGNORE_LIB_WARNINGS = f"(?:{'|'.join(['Hash', 'Update'])})"
 FILTER_PLATFORMIO_LINES = [
     r"Verbose mode can be enabled via `-v, --verbose` option.*",
     r"CONFIGURATION: https://docs.platformio.org/.*",
-    r"PLATFORM: .*",
     r"DEBUG: Current.*",
-    r"PACKAGES: .*",
+    r"LDF Modes:.*",
     r"LDF: Library Dependency Finder -> http://bit.ly/configure-pio-ldf.*",
-    r"LDF Modes: Finder ~ chain, Compatibility ~ soft.*",
     f"Looking for {IGNORE_LIB_WARNINGS} library in registry",
     f"Warning! Library `.*'{IGNORE_LIB_WARNINGS}.*` has not been found in PlatformIO Registry.",
     f"You can ignore this message, if `.*{IGNORE_LIB_WARNINGS}.*` is a built-in library.*",
     r"Scanning dependencies...",
     r"Found \d+ compatible libraries",
     r"Memory Usage -> http://bit.ly/pio-memory-usage",
-    r"esptool.py v.*",
     r"Found: https://platformio.org/lib/show/.*",
     r"Using cache: .*",
     r"Installing dependencies",
-    r".* @ .* is already installed",
+    r"Library Manager: Already installed, built-in library",
     r"Building in .* mode",
     r"Advanced Memory Usage is available via .*",
+    r"Merged .* ELF section",
+    r"esptool.py v.*",
+    r"Checking size .*",
+    r"Retrieving maximum program size .*",
+    r"PLATFORM: .*",
+    r"PACKAGES:.*",
+    r" - framework-arduinoespressif.* \(.*\)",
+    r" - tool-esptool.* \(.*\)",
+    r" - toolchain-.* \(.*\)",
+    r"Creating BIN file .*",
 ]
 
 
diff --git a/esphome/util.py b/esphome/util.py
index 0f168cade3..937635fa43 100644
--- a/esphome/util.py
+++ b/esphome/util.py
@@ -192,8 +192,8 @@ def run_external_command(
         sys.argv = list(cmd)
         sys.exit = mock_exit
         return func() or 0
-    except KeyboardInterrupt:
-        return 1
+    except KeyboardInterrupt:  # pylint: disable=try-except-raise
+        raise
     except SystemExit as err:
         return err.args[0]
     except Exception as err:  # pylint: disable=broad-except
@@ -227,6 +227,8 @@ def run_external_process(*cmd, **kwargs):
 
     try:
         return subprocess.call(cmd, stdout=sub_stdout, stderr=sub_stderr)
+    except KeyboardInterrupt:  # pylint: disable=try-except-raise
+        raise
     except Exception as err:  # pylint: disable=broad-except
         _LOGGER.error("Running command failed: %s", err)
         _LOGGER.error("Please try running %s locally.", full_cmd)
diff --git a/platformio.ini b/platformio.ini
index 9cc7477d51..ee895ed882 100644
--- a/platformio.ini
+++ b/platformio.ini
@@ -26,7 +26,7 @@ build_flags =
 
 [common]
 lib_deps =
-    esphome/noise-c@0.1.3     ; api
+    esphome/noise-c@0.1.4     ; api
     makuna/NeoPixelBus@2.6.7  ; neopixelbus
 build_flags =
     -DESPHOME_LOG_LEVEL=ESPHOME_LOG_LEVEL_VERY_VERBOSE
@@ -39,9 +39,9 @@ src_filter =
 extends = common
 lib_deps =
     ${common.lib_deps}
-    ottowinter/AsyncMqttClient-esphome@0.8.4              ; mqtt
+    ottowinter/AsyncMqttClient-esphome@0.8.6              ; mqtt
     ottowinter/ArduinoJson-esphomelib@5.13.3              ; json
-    esphome/ESPAsyncWebServer-esphome@1.3.0               ; web_server_base
+    esphome/ESPAsyncWebServer-esphome@2.0.0               ; web_server_base
     fastled/FastLED@3.3.2                                 ; fastled_base
     mikalhart/TinyGPSPlus@1.0.2                           ; gps
     freekode/TM1651@1.0.1                                 ; tm1651
@@ -49,7 +49,7 @@ lib_deps =
     glmnet/Dsmr@0.5                                       ; dsmr
     rweather/Crypto@0.2.0                                 ; dsmr
     dudanov/MideaUART@1.1.8                               ; midea
-    tonia/HeatpumpIR@^1.0.15                              ; heatpumpir
+    tonia/HeatpumpIR@1.0.15                               ; heatpumpir
 build_flags =
     ${common.build_flags}
     -DUSE_ARDUINO
diff --git a/requirements.txt b/requirements.txt
index d0ee047f3a..51bbb445d7 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -9,7 +9,7 @@ pyserial==3.5
 platformio==5.2.1  # When updating platformio, also update Dockerfile
 esptool==3.1
 click==8.0.3
-esphome-dashboard==20211021.0
+esphome-dashboard==20211021.1
 aioesphomeapi==9.1.5
 
 # esp-idf requires this, but doesn't bundle it by default
diff --git a/tests/test4.yaml b/tests/test4.yaml
index 4f2025ad74..bc249c5ecb 100644
--- a/tests/test4.yaml
+++ b/tests/test4.yaml
@@ -59,6 +59,10 @@ tuya:
 pipsolar:
     id: inverter0
 
+sx1509:
+  - id: sx1509_hub
+    address: 0x3E
+
 sensor:
   - platform: homeassistant
     entity_id: sensor.hello_world
@@ -209,6 +213,7 @@ sensor:
       - or:
         - throttle: "20min"
         - delta: 0.02
+
 #
 # platform sensor.apds9960 requires component apds9960
 #
@@ -308,6 +313,11 @@ binary_sensor:
     y_max: 212
     on_state:
       - lambda: 'ESP_LOGI("main", "key0: %s", (x ? "touch" : "release"));'
+  - platform: gpio
+    name: GPIO SX1509 test
+    pin:
+      sx1509: sx1509_hub
+      number: 3
 
 climate:
   - platform: tuya