diff --git a/esphome/components/esp32/__init__.py b/esphome/components/esp32/__init__.py
index f8e78794b2..7daaaf7433 100644
--- a/esphome/components/esp32/__init__.py
+++ b/esphome/components/esp32/__init__.py
@@ -1,5 +1,5 @@
 from dataclasses import dataclass
-from typing import Union
+from typing import Union, Optional
 from pathlib import Path
 import logging
 import os
@@ -42,6 +42,7 @@ from .const import (  # noqa
     KEY_REFRESH,
     KEY_REPO,
     KEY_SDKCONFIG_OPTIONS,
+    KEY_SUBMODULES,
     KEY_VARIANT,
     VARIANT_ESP32C3,
     VARIANT_FRIENDLY,
@@ -120,17 +121,28 @@ def add_idf_sdkconfig_option(name: str, value: SdkconfigValueType):
 
 
 def add_idf_component(
-    name: str, repo: str, ref: str = None, path: str = None, refresh: TimePeriod = None
+    *,
+    name: str,
+    repo: str,
+    ref: str = None,
+    path: str = None,
+    refresh: TimePeriod = None,
+    components: Optional[list[str]] = None,
+    submodules: Optional[list[str]] = None,
 ):
     """Add an esp-idf component to the project."""
     if not CORE.using_esp_idf:
         raise ValueError("Not an esp-idf project")
+    if components is None:
+        components = []
     if name not in CORE.data[KEY_ESP32][KEY_COMPONENTS]:
         CORE.data[KEY_ESP32][KEY_COMPONENTS][name] = {
             KEY_REPO: repo,
             KEY_REF: ref,
             KEY_PATH: path,
             KEY_REFRESH: refresh,
+            KEY_COMPONENTS: components,
+            KEY_SUBMODULES: submodules,
         }
 
 
@@ -536,20 +548,41 @@ def copy_files():
                     ref=component[KEY_REF],
                     refresh=component[KEY_REFRESH],
                     domain="idf_components",
+                    submodules=component[KEY_SUBMODULES],
                 )
                 mkdir_p(CORE.relative_build_path("components"))
                 component_dir = repo_dir
                 if component[KEY_PATH] is not None:
                     component_dir = component_dir / component[KEY_PATH]
 
-                shutil.copytree(
-                    component_dir,
-                    CORE.relative_build_path(f"components/{name}"),
-                    dirs_exist_ok=True,
-                    ignore=shutil.ignore_patterns(".git", ".github"),
-                    symlinks=True,
-                    ignore_dangling_symlinks=True,
-                )
+                if component[KEY_COMPONENTS] == ["*"]:
+                    shutil.copytree(
+                        component_dir,
+                        CORE.relative_build_path("components"),
+                        dirs_exist_ok=True,
+                        ignore=shutil.ignore_patterns(".git*"),
+                        symlinks=True,
+                        ignore_dangling_symlinks=True,
+                    )
+                elif len(component[KEY_COMPONENTS]) > 0:
+                    for comp in component[KEY_COMPONENTS]:
+                        shutil.copytree(
+                            component_dir / comp,
+                            CORE.relative_build_path(f"components/{comp}"),
+                            dirs_exist_ok=True,
+                            ignore=shutil.ignore_patterns(".git*"),
+                            symlinks=True,
+                            ignore_dangling_symlinks=True,
+                        )
+                else:
+                    shutil.copytree(
+                        component_dir,
+                        CORE.relative_build_path(f"components/{name}"),
+                        dirs_exist_ok=True,
+                        ignore=shutil.ignore_patterns(".git*"),
+                        symlinks=True,
+                        ignore_dangling_symlinks=True,
+                    )
 
     dir = os.path.dirname(__file__)
     post_build_file = os.path.join(dir, "post_build.py.script")
diff --git a/esphome/components/esp32/const.py b/esphome/components/esp32/const.py
index d13df01d3a..698310dacb 100644
--- a/esphome/components/esp32/const.py
+++ b/esphome/components/esp32/const.py
@@ -9,6 +9,7 @@ KEY_REPO = "repo"
 KEY_REF = "ref"
 KEY_REFRESH = "refresh"
 KEY_PATH = "path"
+KEY_SUBMODULES = "submodules"
 
 VARIANT_ESP32 = "ESP32"
 VARIANT_ESP32S2 = "ESP32S2"
diff --git a/esphome/components/mdns/__init__.py b/esphome/components/mdns/__init__.py
index d9b36c7b09..e7d700d149 100644
--- a/esphome/components/mdns/__init__.py
+++ b/esphome/components/mdns/__init__.py
@@ -86,10 +86,10 @@ async def to_code(config):
         5, 0, 0
     ):
         add_idf_component(
-            "mdns",
-            "https://github.com/espressif/esp-protocols.git",
-            "mdns-v1.0.9",
-            "components/mdns",
+            name="mdns",
+            repo="https://github.com/espressif/esp-protocols.git",
+            ref="mdns-v1.0.9",
+            path="components/mdns",
         )
 
     if config[CONF_DISABLED]:
diff --git a/esphome/git.py b/esphome/git.py
index a607325b73..dcc3e4d0c8 100644
--- a/esphome/git.py
+++ b/esphome/git.py
@@ -15,6 +15,7 @@ _LOGGER = logging.getLogger(__name__)
 
 
 def run_git_command(cmd, cwd=None) -> str:
+    _LOGGER.debug("Running git command: %s", " ".join(cmd))
     try:
         ret = subprocess.run(cmd, cwd=cwd, capture_output=True, check=False)
     except FileNotFoundError as err:
@@ -48,6 +49,7 @@ def clone_or_update(
     domain: str,
     username: str = None,
     password: str = None,
+    submodules: Optional[list[str]] = None,
 ) -> tuple[Path, Optional[Callable[[], None]]]:
     key = f"{url}@{ref}"
 
@@ -74,6 +76,14 @@ def clone_or_update(
             run_git_command(["git", "fetch", "--", "origin", ref], str(repo_dir))
             run_git_command(["git", "reset", "--hard", "FETCH_HEAD"], str(repo_dir))
 
+        if submodules is not None:
+            _LOGGER.info(
+                "Initialising submodules (%s) for %s", ", ".join(submodules), key
+            )
+            run_git_command(
+                ["git", "submodule", "update", "--init"] + submodules, str(repo_dir)
+            )
+
     else:
         # Check refresh needed
         file_timestamp = Path(repo_dir / ".git" / "FETCH_HEAD")
@@ -97,6 +107,14 @@ def clone_or_update(
             # Hard reset to FETCH_HEAD (short-lived git ref corresponding to most recent fetch)
             run_git_command(["git", "reset", "--hard", "FETCH_HEAD"], str(repo_dir))
 
+            if submodules is not None:
+                _LOGGER.info(
+                    "Updating submodules (%s) for %s", ", ".join(submodules), key
+                )
+                run_git_command(
+                    ["git", "submodule", "update", "--init"] + submodules, str(repo_dir)
+                )
+
             def revert():
                 _LOGGER.info("Reverting changes to %s -> %s", key, old_sha)
                 run_git_command(["git", "reset", "--hard", old_sha], str(repo_dir))