diff --git a/homeassistant/helpers/template.py b/homeassistant/helpers/template.py
index bc868fa16b8..b5e62ee2fcd 100644
--- a/homeassistant/helpers/template.py
+++ b/homeassistant/helpers/template.py
@@ -44,8 +44,8 @@ _ENVIRONMENT = "template.environment"
 
 _RE_NONE_ENTITIES = re.compile(r"distance\(|closest\(", re.I | re.M)
 _RE_GET_ENTITIES = re.compile(
-    r"(?:(?:states\.|(?:is_state|is_state_attr|state_attr|states)"
-    r"\((?:[\ \'\"]?))([\w]+\.[\w]+)|([\w]+))",
+    r"(?:(?:states\.|(?P<func>is_state|is_state_attr|state_attr|states|expand)"
+    r"\((?:[\ \'\"]?))(?P<entity_id>[\w]+\.[\w]+)|(?P<variable>[\w]+))",
     re.I | re.M,
 )
 _RE_JINJA_DELIMITERS = re.compile(r"\{%|\{\{")
@@ -76,7 +76,9 @@ def render_complex(value: Any, variables: TemplateVarsType = None) -> Any:
 
 
 def extract_entities(
-    template: Optional[str], variables: Optional[Dict[str, Any]] = None
+    hass: HomeAssistantType,
+    template: Optional[str],
+    variables: Optional[Dict[str, Any]] = None,
 ) -> Union[str, List[str]]:
     """Extract all entities for state_changed listener from template string."""
     if template is None or _RE_JINJA_DELIMITERS.search(template) is None:
@@ -85,27 +87,30 @@ def extract_entities(
     if _RE_NONE_ENTITIES.search(template):
         return MATCH_ALL
 
-    extraction = _RE_GET_ENTITIES.findall(template)
     extraction_final = []
 
-    for result in extraction:
+    for result in _RE_GET_ENTITIES.finditer(template):
         if (
-            result[0] == "trigger.entity_id"
+            result.group("entity_id") == "trigger.entity_id"
             and variables
             and "trigger" in variables
             and "entity_id" in variables["trigger"]
         ):
             extraction_final.append(variables["trigger"]["entity_id"])
-        elif result[0]:
-            extraction_final.append(result[0])
+        elif result.group("entity_id"):
+            if result.group("func") == "expand":
+                for entity in expand(hass, result.group("entity_id")):
+                    extraction_final.append(entity.entity_id)
+
+            extraction_final.append(result.group("entity_id"))
 
         if (
             variables
-            and result[1] in variables
-            and isinstance(variables[result[1]], str)
-            and valid_entity_id(variables[result[1]])
+            and result.group("variable") in variables
+            and isinstance(variables[result.group("variable")], str)
+            and valid_entity_id(variables[result.group("variable")])
         ):
-            extraction_final.append(variables[result[1]])
+            extraction_final.append(variables[result.group("variable")])
 
     if extraction_final:
         return list(set(extraction_final))
@@ -197,7 +202,7 @@ class Template:
         self, variables: Optional[Dict[str, Any]] = None
     ) -> Union[str, List[str]]:
         """Extract all entities for state_changed listener."""
-        return extract_entities(self.template, variables)
+        return extract_entities(self.hass, self.template, variables)
 
     def render(self, variables: TemplateVarsType = None, **kwargs: Any) -> str:
         """Render given template."""
diff --git a/tests/helpers/test_template.py b/tests/helpers/test_template.py
index a698c7af6e7..3f3eb7a800c 100644
--- a/tests/helpers/test_template.py
+++ b/tests/helpers/test_template.py
@@ -1552,19 +1552,19 @@ def test_closest_function_no_location_states(hass):
 
 def test_extract_entities_none_exclude_stuff(hass):
     """Test extract entities function with none or exclude stuff."""
-    assert template.extract_entities(None) == []
+    assert template.extract_entities(hass, None) == []
 
-    assert template.extract_entities("mdi:water") == []
+    assert template.extract_entities(hass, "mdi:water") == []
 
     assert (
         template.extract_entities(
-            "{{ closest(states.zone.far_away, states.test_domain).entity_id }}"
+            hass, "{{ closest(states.zone.far_away, states.test_domain).entity_id }}"
         )
         == MATCH_ALL
     )
 
     assert (
-        template.extract_entities('{{ distance("123", states.test_object_2) }}')
+        template.extract_entities(hass, '{{ distance("123", states.test_object_2) }}')
         == MATCH_ALL
     )
 
@@ -1572,7 +1572,9 @@ def test_extract_entities_none_exclude_stuff(hass):
 def test_extract_entities_no_match_entities(hass):
     """Test extract entities function with none entities stuff."""
     assert (
-        template.extract_entities("{{ value_json.tst | timestamp_custom('%Y' True) }}")
+        template.extract_entities(
+            hass, "{{ value_json.tst | timestamp_custom('%Y' True) }}"
+        )
         == MATCH_ALL
     )
 
@@ -1671,35 +1673,38 @@ def test_generate_select(hass):
     )
 
 
-def test_extract_entities_match_entities(hass):
+async def test_extract_entities_match_entities(hass):
     """Test extract entities function with entities stuff."""
     assert (
         template.extract_entities(
+            hass,
             """
 {% if is_state('device_tracker.phone_1', 'home') %}
 Ha, Hercules is home!
 {% else %}
 Hercules is at {{ states('device_tracker.phone_1') }}.
 {% endif %}
-        """
+        """,
         )
         == ["device_tracker.phone_1"]
     )
 
     assert (
         template.extract_entities(
+            hass,
             """
 {{ as_timestamp(states.binary_sensor.garage_door.last_changed) }}
-        """
+        """,
         )
         == ["binary_sensor.garage_door"]
     )
 
     assert (
         template.extract_entities(
+            hass,
             """
 {{ states("binary_sensor.garage_door") }}
-        """
+        """,
         )
         == ["binary_sensor.garage_door"]
     )
@@ -1708,33 +1713,36 @@ Hercules is at {{ states('device_tracker.phone_1') }}.
 
     assert (
         template.extract_entities(
+            hass,
             """
 {{ is_state_attr('device_tracker.phone_2', 'battery', 40) }}
-        """
+        """,
         )
         == ["device_tracker.phone_2"]
     )
 
     assert sorted(["device_tracker.phone_1", "device_tracker.phone_2"]) == sorted(
         template.extract_entities(
+            hass,
             """
 {% if is_state('device_tracker.phone_1', 'home') %}
 Ha, Hercules is home!
 {% elif states.device_tracker.phone_2.attributes.battery < 40 %}
 Hercules you power goes done!.
 {% endif %}
-        """
+        """,
         )
     )
 
     assert sorted(["sensor.pick_humidity", "sensor.pick_temperature"]) == sorted(
         template.extract_entities(
+            hass,
             """
 {{
 states.sensor.pick_temperature.state ~ „°C (“ ~
 states.sensor.pick_humidity.state ~ „ %“
 }}
-        """
+        """,
         )
     )
 
@@ -1742,35 +1750,55 @@ states.sensor.pick_humidity.state ~ „ %“
         ["sensor.luftfeuchtigkeit_mean", "input_number.luftfeuchtigkeit"]
     ) == sorted(
         template.extract_entities(
+            hass,
             "{% if (states('sensor.luftfeuchtigkeit_mean') | int)"
             " > (states('input_number.luftfeuchtigkeit') | int +1.5)"
-            " %}true{% endif %}"
+            " %}true{% endif %}",
         )
     )
 
+    await group.Group.async_create_group(hass, "empty group", [])
+
+    assert ["group.empty_group"] == template.extract_entities(
+        hass, "{{ expand('group.empty_group') | list | length }}"
+    )
+
+    hass.states.async_set("test_domain.object", "exists")
+    await group.Group.async_create_group(hass, "expand group", ["test_domain.object"])
+
+    assert sorted(["group.expand_group", "test_domain.object"]) == sorted(
+        template.extract_entities(
+            hass, "{{ expand('group.expand_group') | list | length }}"
+        )
+    )
+
+    assert ["test_domain.entity"] == template.Template(
+        '{{ is_state("test_domain.entity", "on") }}', hass
+    ).extract_entities()
+
 
 def test_extract_entities_with_variables(hass):
     """Test extract entities function with variables and entities stuff."""
     hass.states.async_set("input_boolean.switch", "on")
-    assert {"input_boolean.switch"} == extract_entities(
+    assert ["input_boolean.switch"] == template.extract_entities(
         hass, "{{ is_state('input_boolean.switch', 'off') }}", {}
     )
 
-    assert {"input_boolean.switch"} == extract_entities(
+    assert ["input_boolean.switch"] == template.extract_entities(
         hass,
         "{{ is_state(trigger.entity_id, 'off') }}",
         {"trigger": {"entity_id": "input_boolean.switch"}},
     )
 
-    assert {"no_state"} == extract_entities(
+    assert MATCH_ALL == template.extract_entities(
         hass, "{{ is_state(data, 'off') }}", {"data": "no_state"}
     )
 
-    assert {"input_boolean.switch"} == extract_entities(
+    assert ["input_boolean.switch"] == template.extract_entities(
         hass, "{{ is_state(data, 'off') }}", {"data": "input_boolean.switch"}
     )
 
-    assert {"input_boolean.switch"} == extract_entities(
+    assert ["input_boolean.switch"] == template.extract_entities(
         hass,
         "{{ is_state(trigger.entity_id, 'off') }}",
         {"trigger": {"entity_id": "input_boolean.switch"}},