diff --git a/components/sensor/rotary_encoder.rst b/components/sensor/rotary_encoder.rst
index d2a4f96ee..8a42baf16 100644
--- a/components/sensor/rotary_encoder.rst
+++ b/components/sensor/rotary_encoder.rst
@@ -36,6 +36,18 @@ outputs go in the wrong direction, you can just swap these two pins.
         pin_a: D1
         pin_b: D2
 
+To modify additional parameters of pins like active state or pull-ups, you may add extra options.
+
+.. code-block:: yaml
+
+    # Example of advanced pin configuration
+    pin_a: 
+      number: D5
+      inverted: true
+      mode:
+        input: true
+        pullup: true
+
 Configuration variables:
 ------------------------