diff --git a/esphome/components/wifi/wifi_component_esp8266.cpp b/esphome/components/wifi/wifi_component_esp8266.cpp
index 0bf7934878a..5514f1c6be5 100644
--- a/esphome/components/wifi/wifi_component_esp8266.cpp
+++ b/esphome/components/wifi/wifi_component_esp8266.cpp
@@ -92,13 +92,23 @@ bool WiFiComponent::wifi_mode_(optional<bool> sta, optional<bool> ap) {
   return ret;
 }
 bool WiFiComponent::wifi_apply_power_save_() {
+  // ESP8266 sleep types have confusing names — LIGHT_SLEEP_T is the MORE aggressive mode.
+  // SDK enum: NONE_SLEEP_T=0, LIGHT_SLEEP_T=1, MODEM_SLEEP_T=2
+  //   https://github.com/esp8266/Arduino/blob/3.1.2/tools/sdk/include/user_interface.h#L447-L451
+  // Arduino ESP32 compat confirms: WIFI_PS_MIN_MODEM=MODEM_SLEEP, WIFI_PS_MAX_MODEM=LIGHT_SLEEP
+  //   https://github.com/esp8266/Arduino/blob/3.1.2/libraries/ESP8266WiFi/src/ESP8266WiFiType.h#L53-L55
   sleep_type_t power_save;
   switch (this->power_save_) {
     case WIFI_POWER_SAVE_LIGHT:
-      power_save = LIGHT_SLEEP_T;
+      // MODEM_SLEEP_T: only the WiFi modem sleeps between DTIM beacons, CPU stays active.
+      // Matches ESP32's WIFI_PS_MIN_MODEM.
+      power_save = MODEM_SLEEP_T;
       break;
     case WIFI_POWER_SAVE_HIGH:
-      power_save = MODEM_SLEEP_T;
+      // LIGHT_SLEEP_T: both WiFi modem AND CPU suspend between DTIM beacons.
+      // Most aggressive — prevents TCP processing during sleep. Matches ESP32's WIFI_PS_MAX_MODEM.
+      // See https://github.com/esphome/esphome/issues/14999
+      power_save = LIGHT_SLEEP_T;
       break;
     case WIFI_POWER_SAVE_NONE:
     default: