diff --git a/homeassistant/components/aosmith/__init__.py b/homeassistant/components/aosmith/__init__.py
index af780e012ae..cac746e189e 100644
--- a/homeassistant/components/aosmith/__init__.py
+++ b/homeassistant/components/aosmith/__init__.py
@@ -13,7 +13,7 @@ from homeassistant.helpers import aiohttp_client
 from .const import DOMAIN
 from .coordinator import AOSmithCoordinator
 
-PLATFORMS: list[Platform] = [Platform.WATER_HEATER]
+PLATFORMS: list[Platform] = [Platform.SENSOR, Platform.WATER_HEATER]
 
 
 @dataclass
diff --git a/homeassistant/components/aosmith/const.py b/homeassistant/components/aosmith/const.py
index 06794582258..e79b993182e 100644
--- a/homeassistant/components/aosmith/const.py
+++ b/homeassistant/components/aosmith/const.py
@@ -14,3 +14,9 @@ REGULAR_INTERVAL = timedelta(seconds=30)
 
 # Update interval to be used while a mode or setpoint change is in progress.
 FAST_INTERVAL = timedelta(seconds=1)
+
+HOT_WATER_STATUS_MAP = {
+    "LOW": "low",
+    "MEDIUM": "medium",
+    "HIGH": "high",
+}
diff --git a/homeassistant/components/aosmith/sensor.py b/homeassistant/components/aosmith/sensor.py
new file mode 100644
index 00000000000..c9bd9f1321e
--- /dev/null
+++ b/homeassistant/components/aosmith/sensor.py
@@ -0,0 +1,75 @@
+"""The sensor platform for the A. O. Smith integration."""
+
+from collections.abc import Callable
+from dataclasses import dataclass
+from typing import Any
+
+from homeassistant.components.sensor import (
+    SensorDeviceClass,
+    SensorEntity,
+    SensorEntityDescription,
+)
+from homeassistant.config_entries import ConfigEntry
+from homeassistant.core import HomeAssistant
+from homeassistant.helpers.entity_platform import AddEntitiesCallback
+
+from . import AOSmithData
+from .const import DOMAIN, HOT_WATER_STATUS_MAP
+from .coordinator import AOSmithCoordinator
+from .entity import AOSmithEntity
+
+
+@dataclass(kw_only=True)
+class AOSmithSensorEntityDescription(SensorEntityDescription):
+    """Define sensor entity description class."""
+
+    value_fn: Callable[[dict[str, Any]], str | int | None]
+
+
+ENTITY_DESCRIPTIONS: tuple[AOSmithSensorEntityDescription, ...] = (
+    AOSmithSensorEntityDescription(
+        key="hot_water_availability",
+        translation_key="hot_water_availability",
+        icon="mdi:water-thermometer",
+        device_class=SensorDeviceClass.ENUM,
+        options=["low", "medium", "high"],
+        value_fn=lambda device: HOT_WATER_STATUS_MAP.get(
+            device.get("data", {}).get("hotWaterStatus")
+        ),
+    ),
+)
+
+
+async def async_setup_entry(
+    hass: HomeAssistant, entry: ConfigEntry, async_add_entities: AddEntitiesCallback
+) -> None:
+    """Set up A. O. Smith sensor platform."""
+    data: AOSmithData = hass.data[DOMAIN][entry.entry_id]
+
+    async_add_entities(
+        AOSmithSensorEntity(data.coordinator, description, junction_id)
+        for description in ENTITY_DESCRIPTIONS
+        for junction_id in data.coordinator.data
+    )
+
+
+class AOSmithSensorEntity(AOSmithEntity, SensorEntity):
+    """The sensor entity for the A. O. Smith integration."""
+
+    entity_description: AOSmithSensorEntityDescription
+
+    def __init__(
+        self,
+        coordinator: AOSmithCoordinator,
+        description: AOSmithSensorEntityDescription,
+        junction_id: str,
+    ) -> None:
+        """Initialize the entity."""
+        super().__init__(coordinator, junction_id)
+        self.entity_description = description
+        self._attr_unique_id = f"{description.key}_{junction_id}"
+
+    @property
+    def native_value(self) -> str | int | None:
+        """Return the state of the sensor."""
+        return self.entity_description.value_fn(self.device)
diff --git a/homeassistant/components/aosmith/strings.json b/homeassistant/components/aosmith/strings.json
index 26de264bab9..0f1fcfc1744 100644
--- a/homeassistant/components/aosmith/strings.json
+++ b/homeassistant/components/aosmith/strings.json
@@ -24,5 +24,17 @@
       "already_configured": "[%key:common::config_flow::abort::already_configured_account%]",
       "reauth_successful": "[%key:common::config_flow::abort::reauth_successful%]"
     }
+  },
+  "entity": {
+    "sensor": {
+      "hot_water_availability": {
+        "name": "Hot water availability",
+        "state": {
+          "low": "Low",
+          "medium": "Medium",
+          "high": "High"
+        }
+      }
+    }
   }
 }
diff --git a/tests/components/aosmith/snapshots/test_sensor.ambr b/tests/components/aosmith/snapshots/test_sensor.ambr
new file mode 100644
index 00000000000..8499a98c8e5
--- /dev/null
+++ b/tests/components/aosmith/snapshots/test_sensor.ambr
@@ -0,0 +1,20 @@
+# serializer version: 1
+# name: test_state
+  StateSnapshot({
+    'attributes': ReadOnlyDict({
+      'device_class': 'enum',
+      'friendly_name': 'My water heater Hot water availability',
+      'icon': 'mdi:water-thermometer',
+      'options': list([
+        'low',
+        'medium',
+        'high',
+      ]),
+    }),
+    'context': <ANY>,
+    'entity_id': 'sensor.my_water_heater_hot_water_availability',
+    'last_changed': <ANY>,
+    'last_updated': <ANY>,
+    'state': 'low',
+  })
+# ---
diff --git a/tests/components/aosmith/test_sensor.py b/tests/components/aosmith/test_sensor.py
new file mode 100644
index 00000000000..99626b09e83
--- /dev/null
+++ b/tests/components/aosmith/test_sensor.py
@@ -0,0 +1,27 @@
+"""Tests for the sensor platform of the A. O. Smith integration."""
+
+from syrupy.assertion import SnapshotAssertion
+
+from homeassistant.core import HomeAssistant
+from homeassistant.helpers import entity_registry as er
+
+from tests.common import MockConfigEntry
+
+
+async def test_setup(
+    hass: HomeAssistant,
+    entity_registry: er.EntityRegistry,
+    init_integration: MockConfigEntry,
+) -> None:
+    """Test the setup of the sensor entity."""
+    entry = entity_registry.async_get("sensor.my_water_heater_hot_water_availability")
+    assert entry
+    assert entry.unique_id == "hot_water_availability_junctionId"
+
+
+async def test_state(
+    hass: HomeAssistant, init_integration: MockConfigEntry, snapshot: SnapshotAssertion
+) -> None:
+    """Test the state of the sensor entity."""
+    state = hass.states.get("sensor.my_water_heater_hot_water_availability")
+    assert state == snapshot