diff --git a/esphome/components/wifi/wifi_component.cpp b/esphome/components/wifi/wifi_component.cpp
index 87140ca22c..c8d6b6037f 100644
--- a/esphome/components/wifi/wifi_component.cpp
+++ b/esphome/components/wifi/wifi_component.cpp
@@ -262,9 +262,10 @@ int8_t WiFiComponent::find_next_hidden_sta_(int8_t start_index) {
 
     // Skip networks that were already tried in EXPLICIT_HIDDEN phase
     // Those are: networks marked hidden:true that appear before the first non-hidden network
+    // If all networks are hidden (first_non_hidden_idx == -1), skip all of them
     if (!include_explicit_hidden && sta.get_hidden()) {
       int8_t first_non_hidden_idx = this->find_first_non_hidden_index_();
-      if (first_non_hidden_idx >= 0 && static_cast<int8_t>(i) < first_non_hidden_idx) {
+      if (first_non_hidden_idx < 0 || static_cast<int8_t>(i) < first_non_hidden_idx) {
         ESP_LOGD(TAG, "Skipping " LOG_SECRET("'%s'") " (explicit hidden, already tried)", sta.get_ssid().c_str());
         continue;
       }
@@ -1008,6 +1009,12 @@ void WiFiComponent::check_scanning_finished() {
     // No scan results matched our configured networks - transition directly to hidden mode
     // Don't call retry_connect() since we never attempted a connection (no BSSID to penalize)
     this->transition_to_phase_(WiFiRetryPhase::RETRY_HIDDEN);
+    // If no hidden networks to try, skip connection attempt (will be handled on next loop)
+    if (this->selected_sta_index_ == -1) {
+      this->state_ = WIFI_COMPONENT_STATE_COOLDOWN;
+      this->action_started_ = millis();
+      return;
+    }
     // Now start connection attempt in hidden mode
   } else if (this->transition_to_phase_(WiFiRetryPhase::SCAN_CONNECTING)) {
     return;  // scan started, wait for next loop iteration
@@ -1150,7 +1157,12 @@ WiFiRetryPhase WiFiComponent::determine_next_phase_() {
         return WiFiRetryPhase::EXPLICIT_HIDDEN;
       }
 
-      // No more consecutive explicitly hidden networks - proceed to scanning
+      // No more consecutive explicitly hidden networks
+      // If ALL networks are hidden, skip scanning and go directly to restart
+      if (this->find_first_non_hidden_index_() < 0) {
+        return WiFiRetryPhase::RESTARTING_ADAPTER;
+      }
+      // Otherwise proceed to scanning for non-hidden networks
       return WiFiRetryPhase::SCAN_CONNECTING;
     }
 
@@ -1216,8 +1228,8 @@ WiFiRetryPhase WiFiComponent::determine_next_phase_() {
 /// - Performing phase-specific initialization (e.g., advancing AP index, starting scans)
 ///
 /// @param new_phase The phase we're transitioning TO
-/// @return true if an async scan was started (caller should wait for completion)
-///         false if no scan started (caller can proceed with connection attempt)
+/// @return true if connection attempt should be skipped (scan started or no networks to try)
+///         false if caller can proceed with connection attempt
 bool WiFiComponent::transition_to_phase_(WiFiRetryPhase new_phase) {
   WiFiRetryPhase old_phase = this->retry_phase_;
 
diff --git a/esphome/components/wifi/wifi_component.h b/esphome/components/wifi/wifi_component.h
index 113185da01..1a4b611326 100644
--- a/esphome/components/wifi/wifi_component.h
+++ b/esphome/components/wifi/wifi_component.h
@@ -392,7 +392,6 @@ class WiFiComponent : public Component {
   /// Find next SSID that wasn't in scan results (might be hidden)
   /// Returns index of next potentially hidden SSID, or -1 if none found
   /// @param start_index Start searching from index after this (-1 to start from beginning)
-  /// @param include_explicit_hidden If true, include SSIDs marked hidden:true. If false, only find truly hidden SSIDs.
   int8_t find_next_hidden_sta_(int8_t start_index);
   /// Log failed connection and decrease BSSID priority to avoid repeated attempts
   void log_and_adjust_priority_for_failed_connect_();