diff --git a/components/dlms_meter_lib/__init__.py b/components/dlms_meter_lib/__init__.py
new file mode 100644
index 0000000..66fb98a
--- /dev/null
+++ b/components/dlms_meter_lib/__init__.py
@@ -0,0 +1,71 @@
+import re
+
+import esphome.codegen as cg
+from esphome.components import uart
+import esphome.config_validation as cv
+from esphome.const import CONF_ID, CONF_RECEIVE_TIMEOUT, PLATFORM_ESP32, PLATFORM_ESP8266
+
+CODEOWNERS = ["@Tomer27cz"]
+DEPENDENCIES = ["uart"]
+
+CONF_DLMS_METER_ID = "dlms_meter_id"
+CONF_OBIS_CODE = "obis_code"
+
+CONF_DECRYPTION_KEY = "decryption_key"
+CONF_CUSTOM_PATTERN = "custom_pattern"
+
+dlms_meter_component_ns = cg.esphome_ns.namespace("dlms_meter_lib")
+DlmsMeterLibComponent = dlms_meter_component_ns.class_(
+    "DlmsMeterLibComponent", cg.Component, uart.UARTDevice
+)
+
+
+def validate_key(value):
+    value = cv.string_strict(value)
+    if len(value) != 32:
+        raise cv.Invalid("Decryption key must be 32 hex characters (16 bytes)")
+    try:
+        bytes.fromhex(value)
+    except ValueError as exc:
+        raise cv.Invalid("Decryption key must be hex values from 00 to FF") from exc
+    return value
+
+def obis_code(value):
+    value = cv.string(value)
+    # Validate standard OBIS format: A.B.C.D.E.F (e.g., 1.0.1.8.0.255)
+    match = re.match(r"^\d{1,3}\.\d{1,3}\.\d{1,3}\.\d{1,3}\.\d{1,3}\.\d{1,3}$", value)
+    if match is None:
+        raise cv.Invalid(
+            f"{value} is not a valid OBIS code (expected format: A.B.C.D.E.F)"
+        )
+    return value
+
+CONFIG_SCHEMA = cv.All(
+    cv.Schema(
+        {
+            cv.GenerateID(): cv.declare_id(DlmsMeterLibComponent),
+            cv.Optional(CONF_RECEIVE_TIMEOUT, default="50ms"): cv.positive_time_period_milliseconds,
+            cv.Required(CONF_DECRYPTION_KEY): validate_key,
+            cv.Optional(CONF_CUSTOM_PATTERN, default=""): cv.string,
+        }
+    )
+    .extend(uart.UART_DEVICE_SCHEMA)
+    .extend(cv.COMPONENT_SCHEMA),
+    cv.only_on([PLATFORM_ESP8266, PLATFORM_ESP32]),
+    )
+
+FINAL_VALIDATE_SCHEMA = uart.final_validate_device_schema(
+    "dlms_meter_lib", require_rx=True
+)
+
+
+async def to_code(config):
+    var = cg.new_Pvariable(config[CONF_ID])
+    await cg.register_component(var, config)
+    await uart.register_uart_device(var, config)
+
+    cg.add(var.set_receive_timeout(config[CONF_RECEIVE_TIMEOUT]))
+    cg.add(var.set_decryption_key(config[CONF_DECRYPTION_KEY]))
+    cg.add(var.set_custom_pattern(config[CONF_CUSTOM_PATTERN]))
+
+    cg.add_library("dlms_parser", None, "https://github.com/esphome-libs/dlms_parser")
\ No newline at end of file
diff --git a/components/dlms_meter_lib/binary_sensor/__init__.py b/components/dlms_meter_lib/binary_sensor/__init__.py
new file mode 100644
index 0000000..65365e2
--- /dev/null
+++ b/components/dlms_meter_lib/binary_sensor/__init__.py
@@ -0,0 +1,21 @@
+import esphome.codegen as cg
+from esphome.components import binary_sensor
+import esphome.config_validation as cv
+from esphome.const import CONF_DLMS_METER_ID, CONF_OBIS_CODE
+
+from . import DlmsMeterLibComponent, obis_code
+
+DEPENDENCIES = ["dlms_meter_lib"]
+
+CONFIG_SCHEMA = binary_sensor.binary_sensor_schema().extend(
+    {
+        cv.GenerateID(CONF_DLMS_METER_ID): cv.use_id(DlmsMeterLibComponent),
+        cv.Required(CONF_OBIS_CODE): obis_code,
+    }
+)
+
+
+async def to_code(config):
+    hub = await cg.get_variable(config[CONF_DLMS_METER_ID])
+    var = await binary_sensor.new_binary_sensor(config)
+    cg.add(hub.register_binary_sensor(config[CONF_OBIS_CODE], var))
\ No newline at end of file
diff --git a/components/dlms_meter_lib/dlms_meter_lib.cpp b/components/dlms_meter_lib/dlms_meter_lib.cpp
new file mode 100644
index 0000000..4fc87ef
--- /dev/null
+++ b/components/dlms_meter_lib/dlms_meter_lib.cpp
@@ -0,0 +1,181 @@
+#include "dlms_meter_lib.h"
+
+#include <cstdio>
+
+namespace esphome::dlms_meter_lib
+{
+static constexpr const char *TAG = "dlms_meter_lib";
+
+static void log_callback(dlms_parser::LogLevel level, const char *fmt, va_list args) {
+  static char buf[256];
+  vsnprintf(buf, sizeof(buf), fmt, args);
+  switch (level) {
+  case dlms_parser::LogLevel::ERROR:
+    ESP_LOGE(TAG, "%s", buf);
+    break;
+  case dlms_parser::LogLevel::WARNING:
+    ESP_LOGW(TAG, "%s", buf);
+    break;
+  case dlms_parser::LogLevel::INFO:
+    ESP_LOGI(TAG, "%s", buf);
+    break;
+  case dlms_parser::LogLevel::VERBOSE:
+    ESP_LOGV(TAG, "%s", buf);
+    break;
+  default:
+    ESP_LOGVV(TAG, "%s", buf);
+    break;
+  }
+}
+
+void DlmsMeterLibComponent::setup() {
+  dlms_parser::Logger::set_log_function(log_callback);
+  this->parser_.load_default_patterns();
+  this->rx_buffer_ = std::make_unique<uint8_t[]>(MAX_RX_BUFFER_SIZE);
+  this->rx_buffer_len_ = 0;
+}
+
+void DlmsMeterLibComponent::dump_config() {
+  ESP_LOGCONFIG(TAG, "DLMS METER LIB Component:");
+  ESP_LOGCONFIG(TAG, "  Receive Timeout: %u ms", this->receive_timeout_ms_);
+  if (!this->custom_pattern_.empty()) {
+    ESP_LOGCONFIG(TAG, "  Custom Pattern: %s", this->custom_pattern_.c_str());
+  }
+
+#ifdef USE_SENSOR
+  for (const auto &entry : this->sensors_) {
+    LOG_SENSOR("  ", "Numeric Sensor (OBIS)", entry.sensor);
+    ESP_LOGCONFIG(TAG, "    OBIS: %s", entry.obis.c_str());
+  }
+#endif
+#ifdef USE_TEXT_SENSOR
+  for (const auto &entry : this->text_sensors_) {
+    LOG_TEXT_SENSOR("  ", "Text Sensor (OBIS)", entry.sensor);
+    ESP_LOGCONFIG(TAG, "    OBIS: %s", entry.obis.c_str());
+  }
+#endif
+#ifdef USE_BINARY_SENSOR
+  for (const auto &entry : this->binary_sensors_) {
+    LOG_BINARY_SENSOR("  ", "Binary Sensor (OBIS)", entry.sensor);
+    ESP_LOGCONFIG(TAG, "    OBIS: %s", entry.obis.c_str());
+  }
+#endif
+}
+
+void DlmsMeterLibComponent::set_decryption_key(const char *hex_key) {
+  auto key = dlms_parser::Aes128GcmDecryptionKey::from_hex(hex_key);
+  if (key) {
+    this->parser_.set_decryption_key(*key);
+  } else {
+    ESP_LOGE(TAG, "Invalid decryption key");
+  }
+}
+
+void DlmsMeterLibComponent::loop() {
+  this->read_rx_buffer_();
+    if (this->receiving_ && App.get_loop_component_start_time() - this->last_rx_char_time_ > this->receive_timeout_ms_) {
+    this->process_frame_();
+  }
+}
+
+void DlmsMeterLibComponent::read_rx_buffer_() {
+  int available = this->available();
+  if (available == 0)
+    return;
+
+  this->receiving_ = true;
+  this->last_rx_char_time_ = App.get_loop_component_start_time();
+
+  while (this->available()) {
+    if (this->rx_buffer_len_ >= MAX_RX_BUFFER_SIZE) {
+      ESP_LOGW(TAG, "RX Buffer overflow. Frame too large! Truncating.");
+      break;
+    }
+
+    uint8_t byte;
+    if (this->read_byte(&byte)) {
+      this->rx_buffer_[this->rx_buffer_len_++] = byte;
+    } else {
+      ESP_LOGW(TAG, "Failed to read byte from UART.");
+      break;
+    }
+  }
+}
+
+void DlmsMeterLibComponent::process_frame_() {
+  if (this->rx_buffer_len_ == 0)
+    return;
+
+  ESP_LOGD(TAG, "PUSH frame size: %zu bytes", this->rx_buffer_len_);
+
+  auto callback = [this](const char *obis_code, float float_val, const char *str_val, bool is_numeric) {
+    this->on_data_(obis_code, float_val, str_val, is_numeric);
+  };
+
+  this->parser_->parse(this->rx_buffer_.get(), this->rx_buffer_len_, callback);
+  this->rx_buffer_len_ = 0;
+}
+
+void DlmsMeterLibComponent::on_data_(const char *obis_code, float float_val, const char *str_val, bool is_numeric) {
+  int updated_count = 0;
+
+#ifdef USE_SENSOR
+  if (is_numeric) {
+    for (const auto &entry : this->sensors_) {
+      if (entry.obis == obis_code) {
+        ESP_LOGD(TAG, "Found sensor for OBIS code %s: '%s'", obis_code, entry.sensor->get_name().c_str());
+        ESP_LOGD(TAG, "Publishing data");
+        entry.sensor->publish_state(float_val);
+        updated_count++;
+      }
+    }
+  }
+#endif
+
+#ifdef USE_TEXT_SENSOR
+  for (const auto &entry : this->text_sensors_) {
+    if (entry.obis == obis_code) {
+      ESP_LOGD(TAG, "Found sensor for OBIS code %s: '%s'", obis_code, entry.sensor->get_name().c_str());
+      ESP_LOGD(TAG, "Publishing data");
+      entry.sensor->publish_state(str_val);
+      updated_count++;
+    }
+  }
+#endif
+
+#ifdef USE_BINARY_SENSOR
+  if (is_numeric) {
+    bool state = float_val != 0.0f;
+    for (const auto &entry : this->binary_sensors_) {
+      if (entry.obis == obis_code) {
+        ESP_LOGD(TAG, "Found sensor for OBIS code %s: '%s'", obis_code, entry.sensor->get_name().c_str());
+        ESP_LOGD(TAG, "Publishing data");
+        entry.sensor->publish_state(state);
+        updated_count++;
+      }
+    }
+  }
+#endif
+
+  if (updated_count == 0) {
+    ESP_LOGV(TAG, "Received OBIS %s, but no sensors are registered for it.", obis_code);
+  }
+}
+
+
+#ifdef USE_SENSOR
+void DlmsMeterLibComponent::register_sensor(const std::string &obis_code, sensor::Sensor *sensor) {
+  this->sensors_.push_back({obis_code, sensor});
+}
+#endif
+#ifdef USE_TEXT_SENSOR
+void DlmsMeterLibComponent::register_text_sensor(const std::string &obis_code, text_sensor::TextSensor *sensor) {
+  this->text_sensors_.push_back({obis_code, sensor});
+}
+#endif
+#ifdef USE_BINARY_SENSOR
+void DlmsMeterLibComponent::register_binary_sensor(const std::string &obis_code, binary_sensor::BinarySensor *sensor) {
+  this->binary_sensors_.push_back({obis_code, sensor});
+}
+#endif
+}  // namespace esphome::dlms_meter
\ No newline at end of file
diff --git a/components/dlms_meter_lib/dlms_meter_lib.h b/components/dlms_meter_lib/dlms_meter_lib.h
new file mode 100644
index 0000000..2399012
--- /dev/null
+++ b/components/dlms_meter_lib/dlms_meter_lib.h
@@ -0,0 +1,98 @@
+#include "esphome/core/component.h"
+#include "esphome/core/defines.h"
+#include "esphome/core/log.h"
+
+#ifdef USE_SENSOR
+#include "esphome/components/sensor/sensor.h"
+#endif
+#ifdef USE_TEXT_SENSOR
+#include "esphome/components/text_sensor/text_sensor.h"
+#endif
+#ifdef USE_BINARY_SENSOR
+#include "esphome/components/binary_sensor/binary_sensor.h"
+#endif
+
+#include <dlms_parser/dlms_parser.h>
+#if defined(USE_ESP8266_FRAMEWORK_ARDUINO)
+#include <dlms_parser/decryption/aes_128_gcm_decryptor_bearssl.h>
+#elif defined(USE_ESP32)
+#include <esp_idf_version.h>
+#if ESP_IDF_VERSION >= ESP_IDF_VERSION_VAL(6, 0, 0)
+#include <dlms_parser/decryption/aes_128_gcm_decryptor_tfpsa.h>
+#else
+#include <dlms_parser/decryption/aes_128_gcm_decryptor_mbedtls.h>
+#endif
+#else
+#error "Unsupported platform for dlms_meter_lib"
+#endif
+
+#include <vector>
+#include <string>
+#include <array>
+#include <memory>
+
+namespace esphome::dlms_meter_lib {
+
+class DlmsMeterLibComponent : public Component, public uart::UARTDevice {
+ public:
+  DlmsMeterLibComponent() = default;
+
+  void setup() override;
+  void dump_config() override;
+  void loop() override;
+
+  void set_decryption_key(const char *hex_key);
+  void set_receive_timeout(uint32_t timeout_ms) { this->receive_timeout_ms_ = timeout_ms; }
+  void set_custom_pattern(const std::string &pattern) { this->custom_pattern_ = pattern; }
+
+#ifdef USE_SENSOR
+  void register_sensor(const std::string &obis_code, sensor::Sensor *sensor);
+#endif
+#ifdef USE_TEXT_SENSOR
+  void register_text_sensor(const std::string &obis_code, text_sensor::TextSensor *sensor);
+#endif
+#ifdef USE_BINARY_SENSOR
+  void register_binary_sensor(const std::string &obis_code, binary_sensor::BinarySensor *sensor);
+#endif
+
+ protected:
+  void read_rx_buffer_();
+  void process_frame_();
+
+  void on_data_(const char *obis_code, float float_val, const char *str_val, bool is_numeric);
+
+  static constexpr size_t MAX_RX_BUFFER_SIZE = 2048;
+  std::unique_ptr<uint8_t[]> rx_buffer_;
+  size_t rx_buffer_len_{0};
+  uint32_t last_rx_char_time_{0};
+  bool receiving_{false};
+
+  uint32_t receive_timeout_ms_{50};
+  std::string custom_pattern_{""};
+  std::unique_ptr<DlmsParser> parser_;
+
+#ifdef USE_SENSOR
+  struct NumericSensorEntry {
+    std::string obis;
+    sensor::Sensor *sensor;
+  };
+  std::vector<NumericSensorEntry> sensors_;
+#endif
+#ifdef USE_TEXT_SENSOR
+  struct TextSensorEntry {
+    std::string obis;
+    text_sensor::TextSensor *sensor;
+  };
+  std::vector<TextSensorEntry> text_sensors_;
+#endif
+#ifdef USE_BINARY_SENSOR
+  struct BinarySensorEntry {
+    std::string obis;
+    binary_sensor::BinarySensor *sensor;
+  };
+  std::vector<BinarySensorEntry> binary_sensors_;
+#endif
+};
+
+}  // namespace esphome::dlms_meter_lib
+
diff --git a/components/dlms_meter_lib/sensor/__init__.py b/components/dlms_meter_lib/sensor/__init__.py
new file mode 100644
index 0000000..5dad36a
--- /dev/null
+++ b/components/dlms_meter_lib/sensor/__init__.py
@@ -0,0 +1,21 @@
+import esphome.codegen as cg
+from esphome.components import sensor
+import esphome.config_validation as cv
+from esphome.const import CONF_DLMS_METER_ID, CONF_OBIS_CODE
+
+from . import DlmsMeterLibComponent, obis_code
+
+DEPENDENCIES = ["dlms_meter_lib"]
+
+CONFIG_SCHEMA = sensor.sensor_schema().extend(
+    {
+        cv.GenerateID(CONF_DLMS_METER_ID): cv.use_id(DlmsMeterLibComponent),
+        cv.Required(CONF_OBIS_CODE): obis_code,
+    }
+)
+
+
+async def to_code(config):
+    hub = await cg.get_variable(config[CONF_DLMS_METER_ID])
+    var = await sensor.new_sensor(config)
+    cg.add(hub.register_sensor(config[CONF_OBIS_CODE], var))
\ No newline at end of file
diff --git a/components/dlms_meter_lib/text_sensor/__init__.py b/components/dlms_meter_lib/text_sensor/__init__.py
new file mode 100644
index 0000000..2d5e89e
--- /dev/null
+++ b/components/dlms_meter_lib/text_sensor/__init__.py
@@ -0,0 +1,21 @@
+import esphome.codegen as cg
+from esphome.components import text_sensor
+import esphome.config_validation as cv
+from esphome.const import CONF_DLMS_METER_ID, CONF_OBIS_CODE
+
+from . import DlmsMeterLibComponent, obis_code
+
+DEPENDENCIES = ["dlms_meter_lib"]
+
+CONFIG_SCHEMA = text_sensor.text_sensor_schema().extend(
+    {
+        cv.GenerateID(CONF_DLMS_METER_ID): cv.use_id(DlmsMeterLibComponent),
+        cv.Required(CONF_OBIS_CODE): obis_code,
+    }
+)
+
+
+async def to_code(config):
+    hub = await cg.get_variable(config[CONF_DLMS_METER_ID])
+    var = await text_sensor.new_text_sensor(config)
+    cg.add(hub.register_text_sensor(config[CONF_OBIS_CODE], var))
\ No newline at end of file