diff --git a/esphome/components/display/__init__.py b/esphome/components/display/__init__.py
index 4d79a0a31b..67d76a59d9 100644
--- a/esphome/components/display/__init__.py
+++ b/esphome/components/display/__init__.py
@@ -117,8 +117,9 @@ FULL_DISPLAY_SCHEMA.add_extra(_validate_test_card)
 
 
 async def setup_display_core_(var, config):
-    if CONF_ROTATION in config:
-        cg.add(var.set_rotation(DISPLAY_ROTATIONS[config[CONF_ROTATION]]))
+    if rotation := config.get(CONF_ROTATION, 0):
+        # Default initialised value for rotation is 0
+        cg.add(var.set_rotation(DISPLAY_ROTATIONS[rotation]))
 
     if (auto_clear := config.get(CONF_AUTO_CLEAR_ENABLED)) is not None:
         # Default to true if pages or lambda is specified. Ideally this would be done during validation, but
diff --git a/esphome/components/epaper_spi/display.py b/esphome/components/epaper_spi/display.py
index 2657071f45..658f9e2c4a 100644
--- a/esphome/components/epaper_spi/display.py
+++ b/esphome/components/epaper_spi/display.py
@@ -175,9 +175,7 @@ async def to_code(config):
         *model.get_constructor_args(config),
     )
 
-    # Rotation is handled by setting the transform
-    display_config = {k: v for k, v in config.items() if k != CONF_ROTATION}
-    await display.register_display(var, display_config)
+    await display.register_display(var, config)
     await spi.register_spi_device(var, config, write_only=True)
 
     dc = await cg.gpio_pin_expression(config[CONF_DC_PIN])
@@ -201,16 +199,6 @@ async def to_code(config):
         transform[CONF_SWAP_XY] = False
     else:
         transform = {x: model.get_default(x, False) for x in TRANSFORM_OPTIONS}
-    rotation = config[CONF_ROTATION]
-    if rotation == 180:
-        transform[CONF_MIRROR_X] = not transform[CONF_MIRROR_X]
-        transform[CONF_MIRROR_Y] = not transform[CONF_MIRROR_Y]
-    elif rotation == 90:
-        transform[CONF_SWAP_XY] = not transform[CONF_SWAP_XY]
-        transform[CONF_MIRROR_X] = not transform[CONF_MIRROR_X]
-    elif rotation == 270:
-        transform[CONF_SWAP_XY] = not transform[CONF_SWAP_XY]
-        transform[CONF_MIRROR_Y] = not transform[CONF_MIRROR_Y]
     transform_str = "|".join(
         {
             str(getattr(Transform, x.upper()))
diff --git a/esphome/components/epaper_spi/epaper_spi.cpp b/esphome/components/epaper_spi/epaper_spi.cpp
index ae1923a916..a2ca311b30 100644
--- a/esphome/components/epaper_spi/epaper_spi.cpp
+++ b/esphome/components/epaper_spi/epaper_spi.cpp
@@ -97,6 +97,23 @@ bool EPaperBase::reset() {
   return true;
 }
 
+void EPaperBase::update_effective_transform_() {
+  switch (this->rotation_) {
+    case DISPLAY_ROTATION_90_DEGREES:
+      this->effective_transform_ = this->transform_ ^ (SWAP_XY | MIRROR_X);
+      break;
+    case DISPLAY_ROTATION_180_DEGREES:
+      this->effective_transform_ = this->transform_ ^ (MIRROR_Y | MIRROR_X);
+      break;
+    case DISPLAY_ROTATION_270_DEGREES:
+      this->effective_transform_ = this->transform_ ^ (SWAP_XY | MIRROR_Y);
+      break;
+    default:
+      this->effective_transform_ = this->transform_;
+      break;
+  }
+}
+
 void EPaperBase::update() {
   if (this->state_ != EPaperState::IDLE) {
     ESP_LOGE(TAG, "Display already in state %s", epaper_state_to_string_());
@@ -280,11 +297,11 @@ bool EPaperBase::initialise(bool partial) {
 bool EPaperBase::rotate_coordinates_(int &x, int &y) {
   if (!this->get_clipping().inside(x, y))
     return false;
-  if (this->transform_ & SWAP_XY)
+  if (this->effective_transform_ & SWAP_XY)
     std::swap(x, y);
-  if (this->transform_ & MIRROR_X)
+  if (this->effective_transform_ & MIRROR_X)
     x = this->width_ - x - 1;
-  if (this->transform_ & MIRROR_Y)
+  if (this->effective_transform_ & MIRROR_Y)
     y = this->height_ - y - 1;
   if (x >= this->width_ || y >= this->height_ || x < 0 || y < 0)
     return false;
diff --git a/esphome/components/epaper_spi/epaper_spi.h b/esphome/components/epaper_spi/epaper_spi.h
index a743985518..47b4f9f72d 100644
--- a/esphome/components/epaper_spi/epaper_spi.h
+++ b/esphome/components/epaper_spi/epaper_spi.h
@@ -1,6 +1,6 @@
 #pragma once
 
-#include "esphome/components/display/display_buffer.h"
+#include "esphome/components/display/display.h"
 #include "esphome/components/spi/spi.h"
 #include "esphome/components/split_buffer/split_buffer.h"
 #include "esphome/core/component.h"
@@ -51,7 +51,14 @@ class EPaperBase : public Display,
   void set_reset_pin(GPIOPin *reset) { this->reset_pin_ = reset; }
   void set_busy_pin(GPIOPin *busy) { this->busy_pin_ = busy; }
   void set_reset_duration(uint32_t reset_duration) { this->reset_duration_ = reset_duration; }
-  void set_transform(uint8_t transform) { this->transform_ = transform; }
+  void set_transform(uint8_t transform) {
+    this->transform_ = transform;
+    this->update_effective_transform_();
+  }
+  void set_rotation(DisplayRotation rotation) override {
+    Display::set_rotation(rotation);
+    this->update_effective_transform_();
+  }
   void set_full_update_every(uint8_t full_update_every) { this->full_update_every_ = full_update_every; }
   void dump_config() override;
 
@@ -106,8 +113,8 @@ class EPaperBase : public Display,
  protected:
   int get_height_internal() override { return this->height_; };
   int get_width_internal() override { return this->width_; };
-  int get_width() override { return this->transform_ & SWAP_XY ? this->height_ : this->width_; }
-  int get_height() override { return this->transform_ & SWAP_XY ? this->width_ : this->height_; }
+  int get_width() override { return this->effective_transform_ & SWAP_XY ? this->height_ : this->width_; }
+  int get_height() override { return this->effective_transform_ & SWAP_XY ? this->width_ : this->height_; }
   void draw_pixel_at(int x, int y, Color color) override;
   void process_state_();
 
@@ -119,6 +126,7 @@ class EPaperBase : public Display,
   void send_init_sequence_(const uint8_t *sequence, size_t length);
   void wait_for_idle_(bool should_wait);
   bool init_buffer_(size_t buffer_length);
+  void update_effective_transform_();
   bool rotate_coordinates_(int &x, int &y);
 
   /**
@@ -171,6 +179,7 @@ class EPaperBase : public Display,
   uint32_t delay_until_{};  // timestamp until which to delay processing
   uint16_t next_delay_{};   // milliseconds to delay before next state
   uint8_t transform_{};
+  uint8_t effective_transform_{};
   uint8_t update_count_{};
   // these values represent the bounds of the updated buffer. Note that x_high and y_high
   // point to the pixel past the last one updated, i.e. may range up to width/height.
diff --git a/tests/component_tests/mipi_dsi/test_mipi_dsi_config.py b/tests/component_tests/mipi_dsi/test_mipi_dsi_config.py
index 1ae8cc644e..119bbf7fea 100644
--- a/tests/component_tests/mipi_dsi/test_mipi_dsi_config.py
+++ b/tests/component_tests/mipi_dsi/test_mipi_dsi_config.py
@@ -133,6 +133,6 @@ def test_code_generation(
     assert "set_init_sequence({224, 1, 0, 225, 1, 147, 226, 1," in main_cpp
     assert "p4_nano->set_lane_bit_rate(1500.0f);" in main_cpp
     assert "p4_nano->set_rotation(display::DISPLAY_ROTATION_90_DEGREES);" in main_cpp
-    assert "p4_86->set_rotation(display::DISPLAY_ROTATION_0_DEGREES);" in main_cpp
+    assert "p4_86->set_rotation(display::DISPLAY_ROTATION_0_DEGREES);" not in main_cpp
     assert "custom_id->set_rotation(display::DISPLAY_ROTATION_180_DEGREES);" in main_cpp
     # assert "backlight_id = new light::LightState(mipi_dsi_dsibacklight_id);" in main_cpp