diff --git a/esphome/components/template/text/__init__.py b/esphome/components/template/text/__init__.py
index f73b240197..a185cf396e 100644
--- a/esphome/components/template/text/__init__.py
+++ b/esphome/components/template/text/__init__.py
@@ -1,7 +1,7 @@
 from esphome import automation
 import esphome.codegen as cg
 import esphome.config_validation as cv
-from esphome.components import text
+from esphome.components import text, text_sensor
 from esphome.const import (
     CONF_INITIAL_VALUE,
     CONF_LAMBDA,
@@ -11,9 +11,12 @@ from esphome.const import (
     CONF_MIN_LENGTH,
     CONF_PATTERN,
     CONF_SET_ACTION,
+    CONF_DYNAMIC_LAMBDA,
 )
 from .. import template_ns
 
+AUTO_LOAD = ["text_sensor"]
+
 TemplateText = template_ns.class_("TemplateText", text.Text, cg.PollingComponent)
 
 TextSaverBase = template_ns.class_("TemplateTextSaverBase")
@@ -49,13 +52,14 @@ CONFIG_SCHEMA = cv.All(
         {
             cv.GenerateID(): cv.declare_id(TemplateText),
             cv.Optional(CONF_MIN_LENGTH, default=0): cv.int_range(min=0, max=255),
-            cv.Optional(CONF_MAX_LENGTH, default=255): cv.int_range(min=0, max=255),
+            cv.Optional(CONF_MAX_LENGTH, default=255): cv.int_range(min=0, max=1024),
             cv.Optional(CONF_PATTERN): cv.string,
             cv.Optional(CONF_LAMBDA): cv.returning_lambda,
             cv.Optional(CONF_OPTIMISTIC, default=False): cv.boolean,
             cv.Optional(CONF_SET_ACTION): automation.validate_automation(single=True),
             cv.Optional(CONF_INITIAL_VALUE): cv.string_strict,
             cv.Optional(CONF_RESTORE_VALUE, default=False): cv.boolean,
+            cv.Optional(CONF_DYNAMIC_LAMBDA): text_sensor.text_sensor_schema(),
         }
     ).extend(cv.polling_component_schema("60s")),
     validate,
@@ -85,6 +89,11 @@ async def to_code(config):
             args = cg.TemplateArguments(config[CONF_MAX_LENGTH])
             saver = TextSaverTemplate.template(args).new()
             cg.add(var.set_value_saver(saver))
+        if CONF_DYNAMIC_LAMBDA in config:
+            cg.add(var.set_dynamic(True))
+            sens = await text_sensor.new_text_sensor(config[CONF_DYNAMIC_LAMBDA])
+            cg.add(var.set_lambda_result(sens))
+            cg.add_library("jingoro2112/wrench", "6.0.3")
 
     if CONF_SET_ACTION in config:
         await automation.build_automation(
diff --git a/esphome/components/template/text/template_text.cpp b/esphome/components/template/text/template_text.cpp
index fb0208e198..ed662a5d6d 100644
--- a/esphome/components/template/text/template_text.cpp
+++ b/esphome/components/template/text/template_text.cpp
@@ -1,11 +1,38 @@
 #include "template_text.h"
+#include "esphome/core/application.h"
 #include "esphome/core/log.h"
 
+#include <string>
+
 namespace esphome {
 namespace template_ {
 
 static const char *const TAG = "template.text";
 
+void print(WRContext *c, const WRValue *argv, const int argn, WRValue &retVal, void *usr) {
+  char buf[255];
+  for (int i = 0; i < argn; ++i) {
+    printf("%s", argv[i].asString(buf, 255));
+  }
+}
+
+void switches(WRContext *c, const WRValue *argv, const int argn, WRValue &retVal, void *usr) {
+  std::vector<switch_::Switch *> sw = App.get_switches();
+  char buf[255];
+
+  for (int i = 0; i < argn; ++i) {
+    printf("%s", argv[i].asString(buf, 255));
+  }
+
+  for (unsigned int i = 0; i < sw.size(); i++) {
+    ESP_LOGD(TAG, "switch: %s", sw[i]->get_name().c_str());
+    ESP_LOGD(TAG, "switch: %i", sw[i]->state);
+    if (strcmp(sw[i]->get_name().c_str(), buf) == 0) {
+      wr_makeInt(&retVal, sw[i]->state);
+    }
+  };
+}
+
 void TemplateText::setup() {
   if (!(this->f_ == nullptr)) {
     if (this->f_.has_value())
@@ -26,9 +53,21 @@ void TemplateText::setup() {
   }
   if (!value.empty())
     this->publish_state(value);
+
+  if (this->dynamic_) {
+    ESP_LOGD(TAG, "Initiate wrench");
+    this->w = wr_newState();
+    wr_registerFunction(this->w, "print", print);
+    wr_registerFunction(this->w, "switches", switches);
+  }
 }
 
 void TemplateText::update() {
+  ESP_LOGD(TAG, "update");
+
+  if (this->dynamic_) {
+    this->execute_wrench(this->state);
+  }
   if (this->f_ == nullptr)
     return;
 
@@ -42,9 +81,31 @@ void TemplateText::update() {
   this->publish_state(*val);
 }
 
+void TemplateText::execute_wrench(const std::string &value) {
+  int err = wr_compile(value.c_str(), strlen(value.c_str()), &this->outBytes, &this->outLen);  // compile it
+
+  ESP_LOGD(TAG, "wrench err: %i", err);
+  if (err == 0) {
+    WRContext *gc = wr_run(this->w, this->outBytes, this->outLen);  // load and run the code!
+
+    WRValue *g = wr_getGlobalRef(gc, "result");
+
+    if (g) {
+      char buf[1024];
+      this->lambda_result_->publish_state(g->asString(buf, 1024));
+    }
+
+    delete[] outBytes;  // clean up
+  }
+}
+
 void TemplateText::control(const std::string &value) {
   this->set_trigger_->trigger(value);
 
+  if (this->dynamic_) {
+    this->execute_wrench(value);
+  }
+
   if (this->optimistic_)
     this->publish_state(value);
 
@@ -57,6 +118,7 @@ void TemplateText::control(const std::string &value) {
 void TemplateText::dump_config() {
   LOG_TEXT("", "Template Text Input", this);
   ESP_LOGCONFIG(TAG, "  Optimistic: %s", YESNO(this->optimistic_));
+  ESP_LOGCONFIG(TAG, "  Dynamic: %s", YESNO(this->dynamic_));
   LOG_UPDATE_INTERVAL(this);
 }
 
diff --git a/esphome/components/template/text/template_text.h b/esphome/components/template/text/template_text.h
index bcfc54a2ba..31ad3fdccf 100644
--- a/esphome/components/template/text/template_text.h
+++ b/esphome/components/template/text/template_text.h
@@ -1,9 +1,11 @@
 #pragma once
 
+#include <esphome/components/text_sensor/text_sensor.h>
 #include "esphome/components/text/text.h"
 #include "esphome/core/automation.h"
 #include "esphome/core/component.h"
 #include "esphome/core/preferences.h"
+#include "wrench.h"
 
 namespace esphome {
 namespace template_ {
@@ -72,15 +74,24 @@ class TemplateText : public text::Text, public PollingComponent {
   void set_optimistic(bool optimistic) { this->optimistic_ = optimistic; }
   void set_initial_value(const std::string &initial_value) { this->initial_value_ = initial_value; }
   void set_value_saver(TemplateTextSaverBase *restore_value_saver) { this->pref_ = restore_value_saver; }
+  void set_dynamic(bool dynamic) { this->dynamic_ = dynamic; }
+  void set_lambda_result(text_sensor::TextSensor *lambda_result) { this->lambda_result_ = lambda_result; }
 
  protected:
   void control(const std::string &value) override;
   bool optimistic_ = false;
+  bool dynamic_ = true;
   std::string initial_value_;
   Trigger<std::string> *set_trigger_ = new Trigger<std::string>();
   optional<std::function<optional<std::string>()>> f_{nullptr};
+  void execute_wrench(const std::string &value);
 
   TemplateTextSaverBase *pref_ = nullptr;
+  text_sensor::TextSensor *lambda_result_{nullptr};
+  // text_sensor::TextSensor *lambda_result_nullptr};
+  unsigned char *outBytes;  // compiled code is alloc'ed
+  int outLen;
+  WRState *w;
 };
 
 }  // namespace template_
diff --git a/esphome/const.py b/esphome/const.py
index a13a0af8eb..df7c007ec1 100644
--- a/esphome/const.py
+++ b/esphome/const.py
@@ -236,6 +236,7 @@ CONF_DUMMY_RECEIVER = "dummy_receiver"
 CONF_DUMMY_RECEIVER_ID = "dummy_receiver_id"
 CONF_DUMP = "dump"
 CONF_DURATION = "duration"
+CONF_DYNAMIC_LAMBDA = "dynamic_lambda"
 CONF_EAP = "eap"
 CONF_EC = "ec"
 CONF_ECHO_PIN = "echo_pin"