diff --git a/esphome/components/rotary_encoder/rotary_encoder.cpp b/esphome/components/rotary_encoder/rotary_encoder.cpp
index c5227b41a7..c5e9cec596 100644
--- a/esphome/components/rotary_encoder/rotary_encoder.cpp
+++ b/esphome/components/rotary_encoder/rotary_encoder.cpp
@@ -138,6 +138,8 @@ void RotaryEncoderSensor::setup() {
       initial_value = 0;
       break;
   }
+  initial_value = clamp(initial_value, this->store_.min_value, this->store_.max_value);
+
   this->store_.counter = initial_value;
   this->store_.last_read = initial_value;