diff --git a/homeassistant/components/workday/binary_sensor.py b/homeassistant/components/workday/binary_sensor.py
index 533bc77e27c..fc726d56f04 100644
--- a/homeassistant/components/workday/binary_sensor.py
+++ b/homeassistant/components/workday/binary_sensor.py
@@ -103,7 +103,20 @@ def setup_platform(hass, config, add_entities, discovery_info=None):
     # Remove holidays
     try:
         for date in remove_holidays:
-            obj_holidays.pop(date)
+            try:
+                # is this formatted as a date?
+                if dt.parse_date(date):
+                    # remove holiday by date
+                    removed = obj_holidays.pop(date)
+                    _LOGGER.debug("Removed %s", date)
+                else:
+                    # remove holiday by name
+                    _LOGGER.debug("Treating '%s' as named holiday", date)
+                    removed = obj_holidays.pop_named(date)
+                    for holiday in removed:
+                        _LOGGER.debug("Removed %s by name '%s'", holiday, date)
+            except KeyError as unmatched:
+                _LOGGER.warning("No holiday found matching %s", unmatched)
     except TypeError:
         _LOGGER.debug("No holidays to remove or invalid holidays")
 
diff --git a/tests/components/workday/test_binary_sensor.py b/tests/components/workday/test_binary_sensor.py
index 3ec17c3e6d3..f8ab8794c0d 100644
--- a/tests/components/workday/test_binary_sensor.py
+++ b/tests/components/workday/test_binary_sensor.py
@@ -85,6 +85,16 @@ class TestWorkdaySetup:
             }
         }
 
+        self.config_remove_named_holidays = {
+            "binary_sensor": {
+                "platform": "workday",
+                "country": "US",
+                "workdays": ["mon", "tue", "wed", "thu", "fri"],
+                "excludes": ["sat", "sun", "holiday"],
+                "remove_holidays": ["Not a Holiday", "Christmas", "Thanksgiving"],
+            }
+        }
+
         self.config_tomorrow = {
             "binary_sensor": {"platform": "workday", "country": "DE", "days_offset": 1}
         }
@@ -320,3 +330,17 @@ class TestWorkdaySetup:
 
         entity = self.hass.states.get("binary_sensor.workday_sensor")
         assert entity.state == "on"
+
+    # Freeze time to test Fri, but remove holiday by name - Christmas
+    @patch(FUNCTION_PATH, return_value=date(2020, 12, 25))
+    def test_config_remove_named_holidays_xmas(self, mock_date):
+        """Test if removed by name holidays are reported correctly."""
+        with assert_setup_component(1, "binary_sensor"):
+            setup_component(
+                self.hass, "binary_sensor", self.config_remove_named_holidays
+            )
+
+        self.hass.start()
+
+        entity = self.hass.states.get("binary_sensor.workday_sensor")
+        assert entity.state == "on"