diff --git a/esphome/components/modbus_controller/text_sensor/__init__.py b/esphome/components/modbus_controller/text_sensor/__init__.py
index 763336e104..81d6453c6f 100644
--- a/esphome/components/modbus_controller/text_sensor/__init__.py
+++ b/esphome/components/modbus_controller/text_sensor/__init__.py
@@ -37,6 +37,7 @@ RAW_ENCODING = {
     "NONE": RawEncoding.NONE,
     "HEXBYTES": RawEncoding.HEXBYTES,
     "COMMA": RawEncoding.COMMA,
+    "ANSI": RawEncoding.ANSI,
 }
 
 CONFIG_SCHEMA = cv.All(
@@ -49,7 +50,7 @@ CONFIG_SCHEMA = cv.All(
             cv.Optional(CONF_REGISTER_TYPE): cv.enum(MODBUS_REGISTER_TYPE),
             cv.Optional(CONF_REGISTER_COUNT, default=0): cv.positive_int,
             cv.Optional(CONF_RESPONSE_SIZE, default=2): cv.positive_int,
-            cv.Optional(CONF_RAW_ENCODE, default="NONE"): cv.enum(RAW_ENCODING),
+            cv.Optional(CONF_RAW_ENCODE, default="ANSI"): cv.enum(RAW_ENCODING),
         }
     ),
     validate_modbus_register,
diff --git a/esphome/components/modbus_controller/text_sensor/modbus_textsensor.cpp b/esphome/components/modbus_controller/text_sensor/modbus_textsensor.cpp
index da5c0fba37..acdcacc083 100644
--- a/esphome/components/modbus_controller/text_sensor/modbus_textsensor.cpp
+++ b/esphome/components/modbus_controller/text_sensor/modbus_textsensor.cpp
@@ -27,8 +27,11 @@ void ModbusTextSensor::parse_and_publish(const std::vector<uint8_t> &data) {
         sprintf(buffer, index != this->offset ? ",%d" : "%d", b);
         output << buffer;
         break;
+      case RawEncoding::ANSI:
+        if (b < 0x20)
+          break;
+      // FALLTHROUGH
       // Anything else no encoding
-      case RawEncoding::NONE:
       default:
         output << (char) b;
         break;
diff --git a/esphome/components/modbus_controller/text_sensor/modbus_textsensor.h b/esphome/components/modbus_controller/text_sensor/modbus_textsensor.h
index 9cc0db05a5..d6eb5fd230 100644
--- a/esphome/components/modbus_controller/text_sensor/modbus_textsensor.h
+++ b/esphome/components/modbus_controller/text_sensor/modbus_textsensor.h
@@ -9,7 +9,7 @@
 namespace esphome {
 namespace modbus_controller {
 
-enum class RawEncoding { NONE = 0, HEXBYTES = 1, COMMA = 2 };
+enum class RawEncoding { NONE = 0, HEXBYTES = 1, COMMA = 2, ANSI = 3 };
 
 class ModbusTextSensor : public Component, public text_sensor::TextSensor, public SensorItem {
  public: