diff --git a/homeassistant/components/melcloud_home/sensor.py b/homeassistant/components/melcloud_home/sensor.py
index 95b8499484ed..48122626b5ac 100644
--- a/homeassistant/components/melcloud_home/sensor.py
+++ b/homeassistant/components/melcloud_home/sensor.py
@@ -6,7 +6,7 @@ from datetime import datetime
 from itertools import chain
 from typing import override
 
-from aiomelcloudhome import ATAUnit, ATWUnit
+from aiomelcloudhome import ATAUnit, ATWOperationMode, ATWUnit
 
 from homeassistant.components.sensor import (
     SensorDeviceClass,
@@ -44,6 +44,14 @@ ENERGY_CONSUMED_DESCRIPTION = SensorEntityDescription(
     suggested_unit_of_measurement=UnitOfEnergy.KILO_WATT_HOUR,
 )
 
+ATW_OPERATION_STATUS: dict[ATWOperationMode, str] = {
+    ATWOperationMode.STOP: "idle",
+    ATWOperationMode.HOT_WATER: "heating_water",
+    ATWOperationMode.HEAT: "heating_zones",
+    ATWOperationMode.HEAT_ZONES: "heating_zones",
+    ATWOperationMode.COOL: "cooling",
+}
+
 OUTDOOR_TEMPERATURE_DESCRIPTION = SensorEntityDescription(
     key="outdoor_temperature",
     translation_key="outdoor_temperature",
@@ -126,6 +134,15 @@ ATW_SENSORS: tuple[MelCloudHomeSensorEntityDescription[ATWUnit], ...] = (
         suggested_display_precision=1,
         value_fn=lambda unit, _: unit.tank_water_temperature,
     ),
+    MelCloudHomeSensorEntityDescription(
+        key="operation_status",
+        translation_key="operation_status",
+        device_class=SensorDeviceClass.ENUM,
+        options=list(dict.fromkeys(ATW_OPERATION_STATUS.values())),
+        value_fn=lambda unit, _: (
+            ATW_OPERATION_STATUS[unit.operation_mode] if unit.operation_mode else None
+        ),
+    ),
     *_common_sensor_descriptions(ATWUnit),
 )
 
diff --git a/homeassistant/components/melcloud_home/strings.json b/homeassistant/components/melcloud_home/strings.json
index 45b97e499c6c..db244d64d4f5 100644
--- a/homeassistant/components/melcloud_home/strings.json
+++ b/homeassistant/components/melcloud_home/strings.json
@@ -127,6 +127,15 @@
       "energy_consumed": {
         "name": "Energy consumed (monthly)"
       },
+      "operation_status": {
+        "name": "Operation status",
+        "state": {
+          "cooling": "Cooling",
+          "heating_water": "Heating water",
+          "heating_zones": "Heating zones",
+          "idle": "[%key:common::state::idle%]"
+        }
+      },
       "outdoor_temperature": {
         "name": "Outdoor temperature"
       },
diff --git a/tests/components/melcloud_home/snapshots/test_sensor.ambr b/tests/components/melcloud_home/snapshots/test_sensor.ambr
index 31547eb2d23d..372e545b1bc6 100644
--- a/tests/components/melcloud_home/snapshots/test_sensor.ambr
+++ b/tests/components/melcloud_home/snapshots/test_sensor.ambr
@@ -61,6 +61,70 @@
     'state': '0.4505',
   })
 # ---
+# name: test_all_entities[sensor.heat_pump_operation_status-entry]
+  EntityRegistryEntrySnapshot({
+    'aliases': list([
+      None,
+    ]),
+    'area_id': None,
+    'capabilities': dict({
+      <SensorEntityCapabilityAttribute.OPTIONS: 'options'>: list([
+        'idle',
+        'heating_water',
+        'heating_zones',
+        'cooling',
+      ]),
+    }),
+    'config_entry_id': <ANY>,
+    'config_subentry_id': <ANY>,
+    'device_class': None,
+    'device_id': <ANY>,
+    'disabled_by': None,
+    'domain': 'sensor',
+    'entity_category': None,
+    'entity_id': 'sensor.heat_pump_operation_status',
+    'has_entity_name': True,
+    'hidden_by': None,
+    'icon': None,
+    'id': <ANY>,
+    'labels': set({
+    }),
+    'name': None,
+    'object_id_base': 'Operation status',
+    'options': dict({
+    }),
+    'original_device_class': <SensorDeviceClass.ENUM: 'enum'>,
+    'original_icon': None,
+    'original_name': 'Operation status',
+    'platform': 'melcloud_home',
+    'previous_unique_id': None,
+    'suggested_object_id': None,
+    'supported_features': 0,
+    'translation_key': 'operation_status',
+    'unique_id': 'atw-unit-uuid-1_operation_status',
+    'unit_of_measurement': None,
+  })
+# ---
+# name: test_all_entities[sensor.heat_pump_operation_status-state]
+  StateSnapshot({
+    'attributes': ReadOnlyDict({
+      <EntityStateAttribute.DEVICE_CLASS: 'device_class'>: 'enum',
+      <EntityStateAttribute.FRIENDLY_NAME: 'friendly_name'>: 'Heat Pump Operation status',
+      <SensorEntityCapabilityAttribute.OPTIONS: 'options'>: list([
+        'idle',
+        'heating_water',
+        'heating_zones',
+        'cooling',
+      ]),
+    }),
+    'context': <ANY>,
+    'entity_id': 'sensor.heat_pump_operation_status',
+    'last_changed': <ANY>,
+    'last_reported': <ANY>,
+    'last_updated': <ANY>,
+    'state': 'heating_zones',
+  })
+# ---
 # name: test_all_entities[sensor.heat_pump_signal_strength-entry]
   EntityRegistryEntrySnapshot({
     'aliases': list([
diff --git a/tests/components/melcloud_home/test_sensor.py b/tests/components/melcloud_home/test_sensor.py
index 3b3e1372f944..60320b8861fd 100644
--- a/tests/components/melcloud_home/test_sensor.py
+++ b/tests/components/melcloud_home/test_sensor.py
@@ -1,17 +1,25 @@
 """Tests for the MELCloud Home sensor platform."""
 
-from unittest.mock import patch
+from unittest.mock import AsyncMock, patch
 
+from aiomelcloudhome import UserContext
 import pytest
 from syrupy.assertion import SnapshotAssertion
 
-from homeassistant.const import Platform
+from homeassistant.components.melcloud_home.const import DOMAIN
+from homeassistant.const import STATE_UNKNOWN, Platform
 from homeassistant.core import HomeAssistant
 from homeassistant.helpers import entity_registry as er
 
 from . import setup_integration
 
-from tests.common import MockConfigEntry, snapshot_platform
+from tests.common import (
+    MockConfigEntry,
+    async_load_json_object_fixture,
+    snapshot_platform,
+)
+
+OPERATION_STATUS_ENTITY_ID = "sensor.heat_pump_operation_status"
 
 
 @pytest.fixture(autouse=True)
@@ -36,3 +44,36 @@ async def test_all_entities(
         await snapshot_platform(
             hass, entity_registry, snapshot, mock_config_entry.entry_id
         )
+
+
+@pytest.mark.parametrize(
+    ("operation_mode", "expected_state"),
+    [
+        pytest.param("Stop", "idle", id="idle"),
+        pytest.param("HotWater", "heating_water", id="heating_water"),
+        pytest.param("Heat", "heating_zones", id="heat"),
+        pytest.param("HeatZones", "heating_zones", id="heating_zones"),
+        pytest.param("Cool", "cooling", id="cooling"),
+        pytest.param("Defrost", STATE_UNKNOWN, id="unsupported_mode"),
+    ],
+)
+async def test_operation_status(
+    hass: HomeAssistant,
+    mock_melcloud_client: AsyncMock,
+    mock_config_entry: MockConfigEntry,
+    operation_mode: str,
+    expected_state: str,
+) -> None:
+    """Test the operation status follows the unit's operation mode."""
+    context = await async_load_json_object_fixture(hass, "context.json", DOMAIN)
+    settings = {
+        unit_setting["name"]: unit_setting
+        for unit_setting in context["buildings"][0]["airToWaterUnits"][0]["settings"]
+    }
+    settings["OperationMode"]["value"] = operation_mode
+    mock_melcloud_client.get_context.return_value = UserContext.model_validate(context)
+
+    await setup_integration(hass, mock_config_entry)
+
+    assert (state := hass.states.get(OPERATION_STATUS_ENTITY_ID))
+    assert state.state == expected_state