diff --git a/homeassistant/components/device_automation/helpers.py b/homeassistant/components/device_automation/helpers.py
index 2734f7c58aa..038ded07e8a 100644
--- a/homeassistant/components/device_automation/helpers.py
+++ b/homeassistant/components/device_automation/helpers.py
@@ -38,6 +38,7 @@ ENTITY_PLATFORMS = {
     Platform.REMOTE.value,
     Platform.SELECT.value,
     Platform.SWITCH.value,
+    Platform.TEXT.value,
     Platform.VACUUM.value,
     Platform.WATER_HEATER.value,
 }
diff --git a/homeassistant/components/text/device_action.py b/homeassistant/components/text/device_action.py
index 89fbbc7fbc7..9d06d4b7441 100644
--- a/homeassistant/components/text/device_action.py
+++ b/homeassistant/components/text/device_action.py
@@ -3,6 +3,7 @@ from __future__ import annotations
 
 import voluptuous as vol
 
+from homeassistant.components.device_automation import async_validate_entity_schema
 from homeassistant.const import (
     ATTR_ENTITY_ID,
     CONF_DEVICE_ID,
@@ -19,15 +20,22 @@ from .const import ATTR_VALUE, DOMAIN, SERVICE_SET_VALUE
 
 ATYP_SET_VALUE = "set_value"
 
-ACTION_SCHEMA = cv.DEVICE_ACTION_BASE_SCHEMA.extend(
+_ACTION_SCHEMA = cv.DEVICE_ACTION_BASE_SCHEMA.extend(
     {
         vol.Required(CONF_TYPE): ATYP_SET_VALUE,
-        vol.Required(CONF_ENTITY_ID): cv.entity_domain(DOMAIN),
+        vol.Required(CONF_ENTITY_ID): cv.entity_id_or_uuid,
         vol.Required(ATTR_VALUE): cv.string,
     }
 )
 
 
+async def async_validate_action_config(
+    hass: HomeAssistant, config: ConfigType
+) -> ConfigType:
+    """Validate config."""
+    return async_validate_entity_schema(hass, config, _ACTION_SCHEMA)
+
+
 async def async_get_actions(
     hass: HomeAssistant, device_id: str
 ) -> list[dict[str, str]]:
@@ -44,7 +52,7 @@ async def async_get_actions(
             {
                 CONF_DEVICE_ID: device_id,
                 CONF_DOMAIN: DOMAIN,
-                CONF_ENTITY_ID: entry.entity_id,
+                CONF_ENTITY_ID: entry.id,
                 CONF_TYPE: ATYP_SET_VALUE,
             }
         )
diff --git a/tests/components/text/test_device_action.py b/tests/components/text/test_device_action.py
index 09a1a3176f5..88bf692b711 100644
--- a/tests/components/text/test_device_action.py
+++ b/tests/components/text/test_device_action.py
@@ -40,7 +40,7 @@ async def test_get_actions(
         config_entry_id=config_entry.entry_id,
         connections={(dr.CONNECTION_NETWORK_MAC, "12:34:56:AB:CD:EF")},
     )
-    entity_registry.async_get_or_create(
+    entity_entry = entity_registry.async_get_or_create(
         DOMAIN, "test", "5678", device_id=device_entry.id
     )
     hass.states.async_set("text.test_5678", 0.5, {"min_value": 0.0, "max_value": 1.0})
@@ -49,7 +49,7 @@ async def test_get_actions(
             "domain": DOMAIN,
             "type": "set_value",
             "device_id": device_entry.id,
-            "entity_id": "text.test_5678",
+            "entity_id": entity_entry.id,
             "metadata": {"secondary": False},
         },
     ]
@@ -82,7 +82,7 @@ async def test_get_actions_hidden_auxiliary(
         config_entry_id=config_entry.entry_id,
         connections={(dr.CONNECTION_NETWORK_MAC, "12:34:56:AB:CD:EF")},
     )
-    entity_registry.async_get_or_create(
+    entity_entry = entity_registry.async_get_or_create(
         DOMAIN,
         "test",
         "5678",
@@ -96,7 +96,7 @@ async def test_get_actions_hidden_auxiliary(
             "domain": DOMAIN,
             "type": action,
             "device_id": device_entry.id,
-            "entity_id": f"{DOMAIN}.test_5678",
+            "entity_id": entity_entry.id,
             "metadata": {"secondary": True},
         }
         for action in ["set_value"]
@@ -119,7 +119,7 @@ async def test_get_action_no_state(
         config_entry_id=config_entry.entry_id,
         connections={(dr.CONNECTION_NETWORK_MAC, "12:34:56:AB:CD:EF")},
     )
-    entity_registry.async_get_or_create(
+    entity_entry = entity_registry.async_get_or_create(
         DOMAIN, "test", "5678", device_id=device_entry.id
     )
     expected_actions = [
@@ -127,7 +127,7 @@ async def test_get_action_no_state(
             "domain": DOMAIN,
             "type": "set_value",
             "device_id": device_entry.id,
-            "entity_id": "text.test_5678",
+            "entity_id": entity_entry.id,
             "metadata": {"secondary": False},
         },
     ]
@@ -137,9 +137,10 @@ async def test_get_action_no_state(
     assert actions == unordered(expected_actions)
 
 
-async def test_action(hass: HomeAssistant) -> None:
+async def test_action(hass: HomeAssistant, entity_registry: er.EntityRegistry) -> None:
     """Test for actions."""
-    hass.states.async_set("text.entity", 0.5, {"min_value": 0.0, "max_value": 1.0})
+    entry = entity_registry.async_get_or_create(DOMAIN, "test", "5678")
+    hass.states.async_set(entry.entity_id, 0.5, {"min_value": 0.0, "max_value": 1.0})
 
     assert await async_setup_component(
         hass,
@@ -154,7 +155,7 @@ async def test_action(hass: HomeAssistant) -> None:
                     "action": {
                         "domain": DOMAIN,
                         "device_id": "abcdefgh",
-                        "entity_id": "text.entity",
+                        "entity_id": entry.id,
                         "type": "set_value",
                         "value": 0.3,
                     },
@@ -173,14 +174,78 @@ async def test_action(hass: HomeAssistant) -> None:
     assert len(calls) == 1
 
 
-async def test_capabilities(hass: HomeAssistant) -> None:
+async def test_action_legacy(
+    hass: HomeAssistant, entity_registry: er.EntityRegistry
+) -> None:
+    """Test for actions."""
+    entry = entity_registry.async_get_or_create(DOMAIN, "test", "5678")
+    hass.states.async_set(entry.entity_id, 0.5, {"min_value": 0.0, "max_value": 1.0})
+
+    assert await async_setup_component(
+        hass,
+        automation.DOMAIN,
+        {
+            automation.DOMAIN: [
+                {
+                    "trigger": {
+                        "platform": "event",
+                        "event_type": "test_event_set_value",
+                    },
+                    "action": {
+                        "domain": DOMAIN,
+                        "device_id": "abcdefgh",
+                        "entity_id": entry.entity_id,
+                        "type": "set_value",
+                        "value": 0.3,
+                    },
+                },
+            ]
+        },
+    )
+
+    calls = async_mock_service(hass, DOMAIN, "set_value")
+
+    assert len(calls) == 0
+
+    hass.bus.async_fire("test_event_set_value")
+    await hass.async_block_till_done()
+
+    assert len(calls) == 1
+
+
+async def test_capabilities(
+    hass: HomeAssistant, entity_registry: er.EntityRegistry
+) -> None:
     """Test getting capabilities."""
+    entry = entity_registry.async_get_or_create(DOMAIN, "test", "5678")
     capabilities = await device_action.async_get_action_capabilities(
         hass,
         {
             "domain": DOMAIN,
             "device_id": "abcdefgh",
-            "entity_id": "text.entity",
+            "entity_id": entry.id,
+            "type": "set_value",
+        },
+    )
+
+    assert capabilities and "extra_fields" in capabilities
+
+    assert voluptuous_serialize.convert(
+        capabilities["extra_fields"], custom_serializer=cv.custom_serializer
+    ) == [{"name": "value", "required": True, "type": "string"}]
+
+
+async def test_capabilities_legacy(
+    hass: HomeAssistant, entity_registry: er.EntityRegistry
+) -> None:
+    """Test getting capabilities."""
+    entry = entity_registry.async_get_or_create(DOMAIN, "test", "5678")
+    capabilities = await device_action.async_get_action_capabilities(
+        hass,
+        {
+            "domain": DOMAIN,
+            "device_id": "abcdefgh",
+            "entity_id": entry.entity_id,
             "type": "set_value",
         },
     )