diff --git a/esphome/components/climate_ir_lg/climate_ir_lg.cpp b/esphome/components/climate_ir_lg/climate_ir_lg.cpp
index d2199c1cbe..c65f24ebc0 100644
--- a/esphome/components/climate_ir_lg/climate_ir_lg.cpp
+++ b/esphome/components/climate_ir_lg/climate_ir_lg.cpp
@@ -6,18 +6,24 @@ namespace climate_ir_lg {
 
 static const char *const TAG = "climate.climate_ir_lg";
 
-const uint32_t COMMAND_ON = 0x00000;
-const uint32_t COMMAND_ON_AI = 0x03000;
-const uint32_t COMMAND_COOL = 0x08000;
-const uint32_t COMMAND_HEAT = 0x0C000;
+// Commands
+const uint32_t COMMAND_MASK = 0xFF000;
 const uint32_t COMMAND_OFF = 0xC0000;
 const uint32_t COMMAND_SWING = 0x10000;
-// On, 25C, Mode: Auto, Fan: Auto, Zone Follow: Off, Sensor Temp: Ignore.
-const uint32_t COMMAND_AUTO = 0x0B000;
-const uint32_t COMMAND_DRY_FAN = 0x09000;
 
-const uint32_t COMMAND_MASK = 0xFF000;
+const uint32_t COMMAND_ON_COOL = 0x00000;
+const uint32_t COMMAND_ON_DRY = 0x01000;
+const uint32_t COMMAND_ON_FAN_ONLY = 0x02000;
+const uint32_t COMMAND_ON_AI = 0x03000;
+const uint32_t COMMAND_ON_HEAT = 0x04000;
 
+const uint32_t COMMAND_COOL = 0x08000;
+const uint32_t COMMAND_DRY = 0x09000;
+const uint32_t COMMAND_FAN_ONLY = 0x0A000;
+const uint32_t COMMAND_AI = 0x0B000;
+const uint32_t COMMAND_HEAT = 0x0C000;
+
+// Fan speed
 const uint32_t FAN_MASK = 0xF0;
 const uint32_t FAN_AUTO = 0x50;
 const uint32_t FAN_MIN = 0x00;
@@ -35,69 +41,67 @@ void LgIrClimate::transmit_state() {
   uint32_t remote_state = 0x8800000;
 
   // ESP_LOGD(TAG, "climate_lg_ir mode_before_ code: 0x%02X", modeBefore_);
+
+  // Set command
   if (send_swing_cmd_) {
     send_swing_cmd_ = false;
     remote_state |= COMMAND_SWING;
   } else {
-    if (mode_before_ == climate::CLIMATE_MODE_OFF && this->mode == climate::CLIMATE_MODE_HEAT_COOL) {
-      remote_state |= COMMAND_ON_AI;
-    } else if (mode_before_ == climate::CLIMATE_MODE_OFF && this->mode != climate::CLIMATE_MODE_OFF) {
-      remote_state |= COMMAND_ON;
-      this->mode = climate::CLIMATE_MODE_COOL;
-    } else {
-      switch (this->mode) {
-        case climate::CLIMATE_MODE_COOL:
-          remote_state |= COMMAND_COOL;
-          break;
-        case climate::CLIMATE_MODE_HEAT:
-          remote_state |= COMMAND_HEAT;
-          break;
-        case climate::CLIMATE_MODE_HEAT_COOL:
-          remote_state |= COMMAND_AUTO;
-          break;
-        case climate::CLIMATE_MODE_DRY:
-          remote_state |= COMMAND_DRY_FAN;
-          break;
-        case climate::CLIMATE_MODE_OFF:
-        default:
-          remote_state |= COMMAND_OFF;
-          break;
-      }
-    }
-    mode_before_ = this->mode;
-
-    ESP_LOGD(TAG, "climate_lg_ir mode code: 0x%02X", this->mode);
-
-    if (this->mode == climate::CLIMATE_MODE_OFF) {
-      remote_state |= FAN_AUTO;
-    } else if (this->mode == climate::CLIMATE_MODE_COOL || this->mode == climate::CLIMATE_MODE_DRY ||
-               this->mode == climate::CLIMATE_MODE_HEAT) {
-      switch (this->fan_mode.value()) {
-        case climate::CLIMATE_FAN_HIGH:
-          remote_state |= FAN_MAX;
-          break;
-        case climate::CLIMATE_FAN_MEDIUM:
-          remote_state |= FAN_MED;
-          break;
-        case climate::CLIMATE_FAN_LOW:
-          remote_state |= FAN_MIN;
-          break;
-        case climate::CLIMATE_FAN_AUTO:
-        default:
-          remote_state |= FAN_AUTO;
-          break;
-      }
-    }
-
-    if (this->mode == climate::CLIMATE_MODE_HEAT_COOL) {
-      this->fan_mode = climate::CLIMATE_FAN_AUTO;
-      // remote_state |= FAN_MODE_AUTO_DRY;
-    }
-    if (this->mode == climate::CLIMATE_MODE_COOL || this->mode == climate::CLIMATE_MODE_HEAT) {
-      auto temp = (uint8_t) roundf(clamp<float>(this->target_temperature, TEMP_MIN, TEMP_MAX));
-      remote_state |= ((temp - 15) << TEMP_SHIFT);
+    bool climate_is_off = (mode_before_ == climate::CLIMATE_MODE_OFF);
+    switch (this->mode) {
+      case climate::CLIMATE_MODE_COOL:
+        remote_state |= climate_is_off ? COMMAND_ON_COOL : COMMAND_COOL;
+        break;
+      case climate::CLIMATE_MODE_DRY:
+        remote_state |= climate_is_off ? COMMAND_ON_DRY : COMMAND_DRY;
+        break;
+      case climate::CLIMATE_MODE_FAN_ONLY:
+        remote_state |= climate_is_off ? COMMAND_ON_FAN_ONLY : COMMAND_FAN_ONLY;
+        break;
+      case climate::CLIMATE_MODE_HEAT_COOL:
+        remote_state |= climate_is_off ? COMMAND_ON_AI : COMMAND_AI;
+        break;
+      case climate::CLIMATE_MODE_HEAT:
+        remote_state |= climate_is_off ? COMMAND_ON_HEAT : COMMAND_HEAT;
+        break;
+      case climate::CLIMATE_MODE_OFF:
+      default:
+        remote_state |= COMMAND_OFF;
+        break;
     }
   }
+
+  mode_before_ = this->mode;
+
+  ESP_LOGD(TAG, "climate_lg_ir mode code: 0x%02X", this->mode);
+
+  // Set fan speed
+  if (this->mode == climate::CLIMATE_MODE_OFF) {
+    remote_state |= FAN_AUTO;
+  } else {
+    switch (this->fan_mode.value()) {
+      case climate::CLIMATE_FAN_HIGH:
+        remote_state |= FAN_MAX;
+        break;
+      case climate::CLIMATE_FAN_MEDIUM:
+        remote_state |= FAN_MED;
+        break;
+      case climate::CLIMATE_FAN_LOW:
+        remote_state |= FAN_MIN;
+        break;
+      case climate::CLIMATE_FAN_AUTO:
+      default:
+        remote_state |= FAN_AUTO;
+        break;
+    }
+  }
+
+  // Set temperature
+  if (this->mode == climate::CLIMATE_MODE_COOL || this->mode == climate::CLIMATE_MODE_HEAT) {
+    auto temp = (uint8_t) roundf(clamp<float>(this->target_temperature, TEMP_MIN, TEMP_MAX));
+    remote_state |= ((temp - 15) << TEMP_SHIFT);
+  }
+
   transmit_(remote_state);
   this->publish_state();
 }
@@ -125,37 +129,42 @@ bool LgIrClimate::on_receive(remote_base::RemoteReceiveData data) {
   if ((remote_state & 0xFF00000) != 0x8800000)
     return false;
 
-  if ((remote_state & COMMAND_MASK) == COMMAND_ON) {
-    this->mode = climate::CLIMATE_MODE_COOL;
-  } else if ((remote_state & COMMAND_MASK) == COMMAND_ON_AI) {
-    this->mode = climate::CLIMATE_MODE_HEAT_COOL;
-  }
-
+  // Get command
   if ((remote_state & COMMAND_MASK) == COMMAND_OFF) {
     this->mode = climate::CLIMATE_MODE_OFF;
   } else if ((remote_state & COMMAND_MASK) == COMMAND_SWING) {
     this->swing_mode =
         this->swing_mode == climate::CLIMATE_SWING_OFF ? climate::CLIMATE_SWING_VERTICAL : climate::CLIMATE_SWING_OFF;
   } else {
-    if ((remote_state & COMMAND_MASK) == COMMAND_AUTO) {
-      this->mode = climate::CLIMATE_MODE_HEAT_COOL;
-    } else if ((remote_state & COMMAND_MASK) == COMMAND_DRY_FAN) {
-      this->mode = climate::CLIMATE_MODE_DRY;
-    } else if ((remote_state & COMMAND_MASK) == COMMAND_HEAT) {
-      this->mode = climate::CLIMATE_MODE_HEAT;
-    } else {
-      this->mode = climate::CLIMATE_MODE_COOL;
+    switch (remote_state & COMMAND_MASK) {
+      case COMMAND_DRY:
+      case COMMAND_ON_DRY:
+        this->mode = climate::CLIMATE_MODE_DRY;
+        break;
+      case COMMAND_FAN_ONLY:
+      case COMMAND_ON_FAN_ONLY:
+        this->mode = climate::CLIMATE_MODE_FAN_ONLY;
+        break;
+      case COMMAND_AI:
+      case COMMAND_ON_AI:
+        this->mode = climate::CLIMATE_MODE_HEAT_COOL;
+        break;
+      case COMMAND_HEAT:
+      case COMMAND_ON_HEAT:
+        this->mode = climate::CLIMATE_MODE_HEAT;
+        break;
+      case COMMAND_COOL:
+      case COMMAND_ON_COOL:
+      default:
+        this->mode = climate::CLIMATE_MODE_COOL;
+        break;
     }
 
-    // Temperature
-    if (this->mode == climate::CLIMATE_MODE_COOL || this->mode == climate::CLIMATE_MODE_HEAT)
-      this->target_temperature = ((remote_state & TEMP_MASK) >> TEMP_SHIFT) + 15;
-
-    // Fan Speed
+    // Get fan speed
     if (this->mode == climate::CLIMATE_MODE_HEAT_COOL) {
       this->fan_mode = climate::CLIMATE_FAN_AUTO;
-    } else if (this->mode == climate::CLIMATE_MODE_COOL || this->mode == climate::CLIMATE_MODE_HEAT ||
-               this->mode == climate::CLIMATE_MODE_DRY) {
+    } else if (this->mode == climate::CLIMATE_MODE_COOL || this->mode == climate::CLIMATE_MODE_DRY ||
+               this->mode == climate::CLIMATE_MODE_FAN_ONLY || this->mode == climate::CLIMATE_MODE_HEAT) {
       if ((remote_state & FAN_MASK) == FAN_AUTO) {
         this->fan_mode = climate::CLIMATE_FAN_AUTO;
       } else if ((remote_state & FAN_MASK) == FAN_MIN) {
@@ -166,11 +175,17 @@ bool LgIrClimate::on_receive(remote_base::RemoteReceiveData data) {
         this->fan_mode = climate::CLIMATE_FAN_HIGH;
       }
     }
+
+    // Get temperature
+    if (this->mode == climate::CLIMATE_MODE_COOL || this->mode == climate::CLIMATE_MODE_HEAT) {
+      this->target_temperature = ((remote_state & TEMP_MASK) >> TEMP_SHIFT) + 15;
+    }
   }
   this->publish_state();
 
   return true;
 }
+
 void LgIrClimate::transmit_(uint32_t value) {
   calc_checksum_(value);
   ESP_LOGD(TAG, "Sending climate_lg_ir code: 0x%02" PRIX32, value);
diff --git a/esphome/components/climate_ir_lg/climate_ir_lg.h b/esphome/components/climate_ir_lg/climate_ir_lg.h
index 34f50744ef..7ee041b86f 100644
--- a/esphome/components/climate_ir_lg/climate_ir_lg.h
+++ b/esphome/components/climate_ir_lg/climate_ir_lg.h
@@ -14,7 +14,7 @@ const uint8_t TEMP_MAX = 30;  // Celsius
 class LgIrClimate : public climate_ir::ClimateIR {
  public:
   LgIrClimate()
-      : climate_ir::ClimateIR(TEMP_MIN, TEMP_MAX, 1.0f, true, false,
+      : climate_ir::ClimateIR(TEMP_MIN, TEMP_MAX, 1.0f, true, true,
                               {climate::CLIMATE_FAN_AUTO, climate::CLIMATE_FAN_LOW, climate::CLIMATE_FAN_MEDIUM,
                                climate::CLIMATE_FAN_HIGH},
                               {climate::CLIMATE_SWING_OFF, climate::CLIMATE_SWING_VERTICAL}) {}