diff --git a/esphome/components/audio/__init__.py b/esphome/components/audio/__init__.py
index fee582ca25c..fe111be31e7 100644
--- a/esphome/components/audio/__init__.py
+++ b/esphome/components/audio/__init__.py
@@ -220,7 +220,7 @@ async def to_code(config):
     data = _get_data()
 
     if data.micro_decoder_support:
-        add_idf_component(name="esphome/micro-decoder", ref="0.1.1")
+        add_idf_component(name="esphome/micro-decoder", ref="0.2.0")
 
         # All codecs are enabled by default in micro-decoder, so disable the ones that aren't requested to save flash
         if not data.flac_support:
diff --git a/esphome/components/wifi/__init__.py b/esphome/components/wifi/__init__.py
index bc4e177219a..69544f36367 100644
--- a/esphome/components/wifi/__init__.py
+++ b/esphome/components/wifi/__init__.py
@@ -73,6 +73,7 @@ NO_WIFI_VARIANTS = [const.VARIANT_ESP32H2, const.VARIANT_ESP32P4]
 CONF_SAVE = "save"
 CONF_BAND_MODE = "band_mode"
 CONF_MIN_AUTH_MODE = "min_auth_mode"
+CONF_PHY_MODE = "phy_mode"
 CONF_POST_CONNECT_ROAMING = "post_connect_roaming"
 
 # Maximum number of WiFi networks that can be configured
@@ -112,6 +113,14 @@ WIFI_MIN_AUTH_MODES = {
     "WPA3": WifiMinAuthMode.WIFI_MIN_AUTH_MODE_WPA3,
 }
 VALIDATE_WIFI_MIN_AUTH_MODE = cv.enum(WIFI_MIN_AUTH_MODES, upper=True)
+
+WiFi8266PhyMode = wifi_ns.enum("WiFi8266PhyMode")
+WIFI_8266_PHY_MODES = {
+    "AUTO": WiFi8266PhyMode.WIFI_8266_PHY_MODE_AUTO,
+    "11B": WiFi8266PhyMode.WIFI_8266_PHY_MODE_11B,
+    "11G": WiFi8266PhyMode.WIFI_8266_PHY_MODE_11G,
+    "11N": WiFi8266PhyMode.WIFI_8266_PHY_MODE_11N,
+}
 WiFiConnectedCondition = wifi_ns.class_("WiFiConnectedCondition", Condition)
 WiFiEnabledCondition = wifi_ns.class_("WiFiEnabledCondition", Condition)
 WiFiAPActiveCondition = wifi_ns.class_("WiFiAPActiveCondition", Condition)
@@ -406,6 +415,10 @@ CONFIG_SCHEMA = cv.All(
                 cv.only_on_esp32,
                 only_on_variant(supported=[const.VARIANT_ESP32C5]),
             ),
+            cv.Optional(CONF_PHY_MODE): cv.All(
+                cv.enum(WIFI_8266_PHY_MODES, upper=True),
+                cv.only_on_esp8266,
+            ),
             cv.Optional(CONF_PASSIVE_SCAN, default=False): cv.boolean,
             cv.Optional(CONF_ENABLE_ON_BOOT, default=True): cv.boolean,
             cv.Optional(CONF_POST_CONNECT_ROAMING, default=True): cv.boolean,
@@ -569,6 +582,9 @@ async def to_code(config):
 
     if CORE.is_esp8266:
         cg.add_library("ESP8266WiFi", None)
+        if CONF_PHY_MODE in config:
+            cg.add_define("USE_WIFI_PHY_MODE")
+            cg.add(var.set_phy_mode(config[CONF_PHY_MODE]))
     elif CORE.is_rp2040:
         cg.add_library("WiFi", None)
 
diff --git a/esphome/components/wifi/wifi_component.h b/esphome/components/wifi/wifi_component.h
index 53fb0728fb7..0437267a1f0 100644
--- a/esphome/components/wifi/wifi_component.h
+++ b/esphome/components/wifi/wifi_component.h
@@ -345,6 +345,17 @@ enum WifiMinAuthMode : uint8_t {
   WIFI_MIN_AUTH_MODE_WPA3,
 };
 
+#ifdef USE_WIFI_PHY_MODE
+// Values 1-3 match ESP8266 SDK phy_mode_t (PHY_MODE_11B=1, PHY_MODE_11G=2, PHY_MODE_11N=3).
+// AUTO leaves the SDK at its default (no wifi_set_phy_mode() call).
+enum WiFi8266PhyMode : uint8_t {
+  WIFI_8266_PHY_MODE_AUTO = 0,
+  WIFI_8266_PHY_MODE_11B = 1,
+  WIFI_8266_PHY_MODE_11G = 2,
+  WIFI_8266_PHY_MODE_11N = 3,
+};
+#endif
+
 #ifdef USE_ESP32
 struct IDFWiFiEvent;
 #endif
@@ -455,6 +466,9 @@ class WiFiComponent final : public Component {
 #if defined(USE_ESP32) && defined(SOC_WIFI_SUPPORT_5G)
   void set_band_mode(wifi_band_mode_t band_mode) { this->band_mode_ = band_mode; }
 #endif
+#ifdef USE_WIFI_PHY_MODE
+  void set_phy_mode(WiFi8266PhyMode phy_mode) { this->phy_mode_ = phy_mode; }
+#endif
 
   void set_passive_scan(bool passive);
 
@@ -672,6 +686,9 @@ class WiFiComponent final : public Component {
   bool wifi_apply_power_save_();
 #if defined(USE_ESP32) && defined(SOC_WIFI_SUPPORT_5G)
   bool wifi_apply_band_mode_();
+#endif
+#ifdef USE_WIFI_PHY_MODE
+  bool wifi_apply_phy_mode_();
 #endif
   bool wifi_sta_ip_config_(const optional<ManualIP> &manual_ip);
   bool wifi_apply_hostname_();
@@ -810,6 +827,9 @@ class WiFiComponent final : public Component {
   WiFiPowerSaveMode power_save_{WIFI_POWER_SAVE_NONE};
 #if defined(USE_ESP32) && defined(SOC_WIFI_SUPPORT_5G)
   wifi_band_mode_t band_mode_{WIFI_BAND_MODE_AUTO};
+#endif
+#ifdef USE_WIFI_PHY_MODE
+  WiFi8266PhyMode phy_mode_{WIFI_8266_PHY_MODE_AUTO};
 #endif
   WifiMinAuthMode min_auth_mode_{WIFI_MIN_AUTH_MODE_WPA2};
   WiFiRetryPhase retry_phase_{WiFiRetryPhase::INITIAL_CONNECT};
diff --git a/esphome/components/wifi/wifi_component_esp8266.cpp b/esphome/components/wifi/wifi_component_esp8266.cpp
index bf3a0d29497..9d2c1bb1be0 100644
--- a/esphome/components/wifi/wifi_component_esp8266.cpp
+++ b/esphome/components/wifi/wifi_component_esp8266.cpp
@@ -621,10 +621,25 @@ bool WiFiComponent::wifi_sta_pre_setup_() {
     ESP_LOGV(TAG, "Disabling Auto-Connect failed");
   }
 
+#ifdef USE_WIFI_PHY_MODE
+  if (!this->wifi_apply_phy_mode_()) {
+    ESP_LOGV(TAG, "Setting PHY Mode failed");
+  }
+#endif
+
   delay(10);
   return true;
 }
 
+#ifdef USE_WIFI_PHY_MODE
+bool WiFiComponent::wifi_apply_phy_mode_() {
+  if (this->phy_mode_ == WIFI_8266_PHY_MODE_AUTO)
+    return true;
+  // Values of WiFi8266PhyMode are aligned with the SDK's phy_mode_t enum.
+  return wifi_set_phy_mode(static_cast<phy_mode_t>(this->phy_mode_));
+}
+#endif
+
 void WiFiComponent::wifi_pre_setup_() {
   wifi_set_event_handler_cb(&WiFiComponent::wifi_event_callback);
 
diff --git a/esphome/core/defines.h b/esphome/core/defines.h
index fceb56d06d4..ef0a1a2e66b 100644
--- a/esphome/core/defines.h
+++ b/esphome/core/defines.h
@@ -283,6 +283,7 @@
 #define USE_CAPTIVE_PORTAL_GZIP
 #define USE_WIFI_11KV_SUPPORT
 #define USE_WIFI_FAST_CONNECT
+#define USE_WIFI_PHY_MODE
 #define USE_WIFI_IP_STATE_LISTENERS
 #define USE_WIFI_SCAN_RESULTS_LISTENERS
 #define USE_WIFI_CONNECT_STATE_LISTENERS
diff --git a/esphome/idf_component.yml b/esphome/idf_component.yml
index 11531e6d7b4..cb7f5903cfd 100644
--- a/esphome/idf_component.yml
+++ b/esphome/idf_component.yml
@@ -6,7 +6,7 @@ dependencies:
   esphome/esp-micro-speech-features:
     version: 1.2.3
   esphome/micro-decoder:
-    version: 0.1.1
+    version: 0.2.0
   esphome/micro-flac:
     version: 0.1.1
   esphome/micro-opus:
diff --git a/tests/components/wifi/test.esp8266-ard.yaml b/tests/components/wifi/test.esp8266-ard.yaml
index 034b74b3fbb..bb879b495a6 100644
--- a/tests/components/wifi/test.esp8266-ard.yaml
+++ b/tests/components/wifi/test.esp8266-ard.yaml
@@ -7,6 +7,7 @@ wifi:
     subnet: 255.255.255.0
     dns1: 1.1.1.1
     dns2: 8.8.8.8
+  phy_mode: 11G
 
 packages:
   - !include common.yaml