diff --git a/esphome/components/external_components/__init__.py b/esphome/components/external_components/__init__.py
index bbb703dc5..f4432a036 100644
--- a/esphome/components/external_components/__init__.py
+++ b/esphome/components/external_components/__init__.py
@@ -49,7 +49,16 @@ def _process_git_config(config: dict, refresh) -> str:
         password=config.get(CONF_PASSWORD),
     )
 
-    if (repo_dir / "esphome" / "components").is_dir():
+    if path := config.get(CONF_PATH):
+        if (repo_dir / path).is_dir():
+            components_dir = repo_dir / path
+        else:
+            raise cv.Invalid(
+                "Could not find components folder for source. Please check the source contains a '"
+                + path
+                + "' folder"
+            )
+    elif (repo_dir / "esphome" / "components").is_dir():
         components_dir = repo_dir / "esphome" / "components"
     elif (repo_dir / "components").is_dir():
         components_dir = repo_dir / "components"
diff --git a/esphome/config_validation.py b/esphome/config_validation.py
index 198b44f38..3554f0383 100644
--- a/esphome/config_validation.py
+++ b/esphome/config_validation.py
@@ -2124,6 +2124,7 @@ GIT_SCHEMA = Schema(
         Optional(CONF_REF): git_ref,
         Optional(CONF_USERNAME): string,
         Optional(CONF_PASSWORD): string,
+        Optional(CONF_PATH): string,
     }
 )
 LOCAL_SCHEMA = Schema(