diff --git a/pkgs/tools/misc/esphome/default.nix b/pkgs/tools/misc/esphome/default.nix
index 6b891dcf3750..848a1c1dbb56 100644
--- a/pkgs/tools/misc/esphome/default.nix
+++ b/pkgs/tools/misc/esphome/default.nix
@@ -1,4 +1,5 @@
 { lib
+, callPackage
 , python3
 , fetchFromGitHub
 , platformio
@@ -13,16 +14,16 @@ let
     };
   };
 in
-with python.pkgs; buildPythonApplication rec {
+python.pkgs.buildPythonApplication rec {
   pname = "esphome";
-  version = "2022.12.4";
+  version = "2022.12.8";
   format = "setuptools";
 
   src = fetchFromGitHub {
     owner = pname;
     repo = pname;
     rev = "refs/tags/${version}";
-    hash = "sha256-HU4S6U5v0r93z4T6JpclEF6Cw6vy0VoprVyI4Z2Ti7s=";
+    hash = "sha256-VKxCdejQGWLYeNOxa1PCwhdrLilnsYD9UBqj8Sen+OM=";
   };
 
   postPatch = ''
@@ -42,7 +43,7 @@ with python.pkgs; buildPythonApplication rec {
   # They have validation functions like:
   # - validate_cryptography_installed
   # - validate_pillow_installed
-  propagatedBuildInputs = [
+  propagatedBuildInputs = with python.pkgs; [
     aioesphomeapi
     click
     colorama
@@ -71,12 +72,11 @@ with python.pkgs; buildPythonApplication rec {
     "--set ESPHOME_USE_SUBPROCESS ''"
   ];
 
-  nativeCheckInputs = [
+  nativeCheckInputs = with python.pkgs; [
     hypothesis
     mock
     pytest-asyncio
     pytest-mock
-    pytest-sugar
     pytestCheckHook
   ];
 
@@ -92,7 +92,7 @@ with python.pkgs; buildPythonApplication rec {
   '';
 
   passthru = {
-    dashboard = esphome-dashboard;
+    dashboard = python.pkgs.esphome-dashboard;
     updateScript = callPackage ./update.nix {};
   };
 
diff --git a/pkgs/tools/misc/esphome/update.nix b/pkgs/tools/misc/esphome/update.nix
index ea4137662054..6b05162f3955 100644
--- a/pkgs/tools/misc/esphome/update.nix
+++ b/pkgs/tools/misc/esphome/update.nix
@@ -1,12 +1,23 @@
 { writeShellScript
 , lib
+, curl
+, jq
 , git
+, gnugrep
+, gnused
 , nix-update
 }:
 
 writeShellScript "update-esphome" ''
-  PATH=${lib.makeBinPath [ git nix-update ]}
+  PATH=${lib.makeBinPath [ curl gnugrep gnused jq git nix-update ]}
 
-  nix-update esphome.dashboard
-  nix-update esphome
+  LATEST=$(curl https://api.github.com/repos/esphome/esphome/releases/latest | jq -r '.name')
+  echo "Latest version: $LATEST"
+
+  DASHBOARD_VERSION=$(curl https://raw.githubusercontent.com/esphome/esphome/$LATEST/requirements.txt | \
+    grep "esphome-dashboard==" | sed "s/.*=//")
+  echo "Dashboard version: $DASHBOARD_VERSION"
+
+  nix-update esphome.dashboard --version $DASHBOARD_VERSION
+  nix-update esphome --version $LATEST
 ''