diff --git a/esphome/components/graphical_layout/text_panel.h b/esphome/components/graphical_layout/text_panel.h
index 08e78c0325..bd497e2da9 100644
--- a/esphome/components/graphical_layout/text_panel.h
+++ b/esphome/components/graphical_layout/text_panel.h
@@ -19,7 +19,6 @@ class TextPanel : public LayoutItem {
   void render_internal(display::Display *display, display::Rect bounds) override;
   void dump_config(int indent_depth, int additional_level_depth) override;
 
-  void set_item_padding(int item_padding) { this->item_padding_ = item_padding; };
   template<typename V> void set_text(V text) { this->text_ = text; };
   void set_font(display::BaseFont *font) { this->font_ = font; };
   void set_foreground_color(Color foreground_color) { this->foreground_color_ = foreground_color; };
@@ -27,7 +26,6 @@ class TextPanel : public LayoutItem {
   void set_text_align(display::TextAlign text_align) { this->text_align_ = text_align; };
 
  protected:
-  int item_padding_{0};
   TemplatableValue<std::string> text_{};
   display::BaseFont *font_{nullptr};
   display::TextAlign text_align_{display::TextAlign::TOP_LEFT};
diff --git a/esphome/components/graphical_layout/text_panel.py b/esphome/components/graphical_layout/text_panel.py
index 002b3bce09..1f5b02aab1 100644
--- a/esphome/components/graphical_layout/text_panel.py
+++ b/esphome/components/graphical_layout/text_panel.py
@@ -7,7 +7,6 @@ graphical_layout_ns = cg.esphome_ns.namespace("graphical_layout")
 TextPanel = graphical_layout_ns.class_("TextPanel")
 TextAlign = display_ns.enum("TextAlign", is_class=True)
 
-CONF_ITEM_PADDING = "item_padding"
 CONF_TEXT_PANEL = "text_panel"
 CONF_FONT = "font"
 CONF_FOREGROUND_COLOR = "foreground_color"
@@ -36,7 +35,6 @@ def get_config_schema(base_item_schema, item_type_schema):
     return base_item_schema.extend(
         {
             cv.GenerateID(): cv.declare_id(TextPanel),
-            cv.Optional(CONF_ITEM_PADDING, default=0): cv.int_,
             cv.Required(CONF_FONT): cv.use_id(font.Font),
             cv.Optional(CONF_FOREGROUND_COLOR): cv.use_id(color.ColorStruct),
             cv.Optional(CONF_BACKGROUND_COLOR): cv.use_id(color.ColorStruct),
@@ -49,9 +47,6 @@ def get_config_schema(base_item_schema, item_type_schema):
 async def config_to_layout_item(pvariable_builder, item_config, child_item_builder):
     var = await pvariable_builder(item_config)
 
-    if item_padding_config := item_config[CONF_ITEM_PADDING]:
-        cg.add(var.set_item_padding(item_padding_config))
-
     panel_font = await cg.get_variable(item_config[CONF_FONT])
     cg.add(var.set_font(panel_font))