diff --git a/.coveragerc b/.coveragerc
index eb73cb66c30..3ccfdeb3569 100644
--- a/.coveragerc
+++ b/.coveragerc
@@ -619,6 +619,7 @@ omit =
     homeassistant/components/sensor/imap_email_content.py
     homeassistant/components/sensor/imap.py
     homeassistant/components/sensor/influxdb.py
+    homeassistant/components/sensor/iperf3.py
     homeassistant/components/sensor/irish_rail_transport.py
     homeassistant/components/sensor/kwb.py
     homeassistant/components/sensor/lacrosse.py
diff --git a/Dockerfile b/Dockerfile
index 5081b4ba721..75d9e9eb716 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -12,6 +12,7 @@ LABEL maintainer="Paulus Schoutsen <Paulus@PaulusSchoutsen.nl>"
 #ENV INSTALL_LIBCEC no
 #ENV INSTALL_PHANTOMJS no
 #ENV INSTALL_SSOCR no
+#ENV INSTALL_IPERF3 no
 
 VOLUME /config
 
diff --git a/homeassistant/components/sensor/iperf3.py b/homeassistant/components/sensor/iperf3.py
new file mode 100644
index 00000000000..1a209faf17f
--- /dev/null
+++ b/homeassistant/components/sensor/iperf3.py
@@ -0,0 +1,178 @@
+"""
+Support for Iperf3 network measurement tool.
+
+For more details about this platform, please refer to the documentation at
+https://home-assistant.io/components/sensor.iperf3/
+"""
+import logging
+from datetime import timedelta
+
+import voluptuous as vol
+
+from homeassistant.components.sensor import DOMAIN, PLATFORM_SCHEMA
+from homeassistant.const import (
+    ATTR_ATTRIBUTION, ATTR_ENTITY_ID, CONF_MONITORED_CONDITIONS,
+    CONF_HOST, CONF_PORT)
+import homeassistant.helpers.config_validation as cv
+from homeassistant.helpers.entity import Entity
+
+REQUIREMENTS = ['iperf3==0.1.10']
+
+_LOGGER = logging.getLogger(__name__)
+
+ATTR_PROTOCOL = 'Protocol'
+ATTR_REMOTE_HOST = 'Remote Server'
+ATTR_REMOTE_PORT = 'Remote Port'
+ATTR_VERSION = 'Version'
+
+CONF_ATTRIBUTION = 'Data retrieved using Iperf3'
+CONF_DURATION = 'duration'
+
+DEFAULT_DURATION = 10
+DEFAULT_PORT = 5201
+
+IPERF3_DATA = 'iperf3'
+
+SCAN_INTERVAL = timedelta(minutes=30)
+
+SERVICE_NAME = 'iperf3_update'
+
+ICON = 'mdi:speedometer'
+
+SENSOR_TYPES = {
+    'download': ['Download', 'Mbit/s'],
+    'upload': ['Upload', 'Mbit/s'],
+}
+
+PLATFORM_SCHEMA = PLATFORM_SCHEMA.extend({
+    vol.Required(CONF_MONITORED_CONDITIONS):
+        vol.All(cv.ensure_list, [vol.In(list(SENSOR_TYPES))]),
+    vol.Required(CONF_PORT, default=DEFAULT_PORT): cv.port,
+    vol.Required(CONF_HOST): cv.string,
+    vol.Optional(CONF_DURATION, default=DEFAULT_DURATION): vol.Range(5, 10),
+})
+
+
+SERVICE_SCHEMA = vol.Schema({
+    vol.Optional(ATTR_ENTITY_ID): cv.string,
+})
+
+
+def setup_platform(hass, config, add_devices, discovery_info=None):
+    """Set up the Iperf3 sensor."""
+    if hass.data.get(IPERF3_DATA) is None:
+        hass.data[IPERF3_DATA] = {}
+        hass.data[IPERF3_DATA]['sensors'] = []
+
+    dev = []
+    for sensor in config[CONF_MONITORED_CONDITIONS]:
+        dev.append(
+            Iperf3Sensor(config[CONF_HOST],
+                         config[CONF_PORT],
+                         config[CONF_DURATION],
+                         sensor))
+
+    hass.data[IPERF3_DATA]['sensors'].extend(dev)
+    add_devices(dev)
+
+    def _service_handler(service):
+        """Update service for manual updates."""
+        entity_id = service.data.get('entity_id')
+        all_iperf3_sensors = hass.data[IPERF3_DATA]['sensors']
+
+        for sensor in all_iperf3_sensors:
+            if entity_id is not None:
+                if sensor.entity_id == entity_id:
+                    sensor.update()
+                    sensor.schedule_update_ha_state()
+                    break
+            else:
+                sensor.update()
+                sensor.schedule_update_ha_state()
+
+    for sensor in dev:
+        hass.services.register(DOMAIN, SERVICE_NAME, _service_handler,
+                               schema=SERVICE_SCHEMA)
+
+
+class Iperf3Sensor(Entity):
+    """A Iperf3 sensor implementation."""
+
+    def __init__(self, server, port, duration, sensor_type):
+        """Initialize the sensor."""
+        self._attrs = {
+            ATTR_ATTRIBUTION: CONF_ATTRIBUTION,
+        }
+        self._name = \
+            "{} {}".format(SENSOR_TYPES[sensor_type][0], server)
+        self._state = None
+        self._sensor_type = sensor_type
+        self._unit_of_measurement = SENSOR_TYPES[sensor_type][1]
+        self._port = port
+        self._server = server
+        self._duration = duration
+        self.result = None
+
+    @property
+    def name(self):
+        """Return the name of the sensor."""
+        return self._name
+
+    @property
+    def state(self):
+        """Return the state of the device."""
+        return self._state
+
+    @property
+    def unit_of_measurement(self):
+        """Return the unit of measurement of this entity, if any."""
+        return self._unit_of_measurement
+
+    @property
+    def device_state_attributes(self):
+        """Return the state attributes."""
+        if self.result is not None:
+            self._attrs[ATTR_ATTRIBUTION] = CONF_ATTRIBUTION
+            self._attrs[ATTR_PROTOCOL] = self.result.protocol
+            self._attrs[ATTR_REMOTE_HOST] = self.result.remote_host
+            self._attrs[ATTR_REMOTE_PORT] = self.result.remote_port
+            self._attrs[ATTR_VERSION] = self.result.version
+        return self._attrs
+
+    def update(self):
+        """Get the latest data and update the states."""
+        import iperf3
+        client = iperf3.Client()
+        client.duration = self._duration
+        client.server_hostname = self._server
+        client.port = self._port
+        client.verbose = False
+
+        # when testing download bandwith, reverse must be True
+        if self._sensor_type == 'download':
+            client.reverse = True
+
+        try:
+            self.result = client.run()
+        except (OSError, AttributeError) as error:
+            self.result = None
+            _LOGGER.error("Iperf3 sensor error: %s", error)
+            return
+
+        if self.result is not None and \
+           hasattr(self.result, 'error') and \
+           self.result.error is not None:
+            _LOGGER.error("Iperf3 sensor error: %s", self.result.error)
+            self.result = None
+            return
+
+        if self._sensor_type == 'download':
+            self._state = round(self.result.received_Mbps, 2)
+
+        elif self._sensor_type == 'upload':
+            self._state = round(self.result.sent_Mbps, 2)
+
+    @property
+    def icon(self):
+        """Return icon."""
+        return ICON
diff --git a/requirements_all.txt b/requirements_all.txt
index 0879c539ea8..7a40a1aa48e 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -451,6 +451,9 @@ insteonlocal==0.53
 # homeassistant.components.insteon_plm
 insteonplm==0.9.2
 
+# homeassistant.components.sensor.iperf3
+iperf3==0.1.10
+
 # homeassistant.components.verisure
 jsonpath==0.75
 
diff --git a/virtualization/Docker/Dockerfile.dev b/virtualization/Docker/Dockerfile.dev
index 06676140702..d0599c2e74c 100644
--- a/virtualization/Docker/Dockerfile.dev
+++ b/virtualization/Docker/Dockerfile.dev
@@ -13,6 +13,7 @@ LABEL maintainer="Paulus Schoutsen <Paulus@PaulusSchoutsen.nl>"
 #ENV INSTALL_PHANTOMJS no
 #ENV INSTALL_COAP no
 #ENV INSTALL_SSOCR no
+#ENV INSTALL_IPERF3 no
 
 VOLUME /config
 
diff --git a/virtualization/Docker/scripts/iperf3 b/virtualization/Docker/scripts/iperf3
new file mode 100755
index 00000000000..2d9d5a33761
--- /dev/null
+++ b/virtualization/Docker/scripts/iperf3
@@ -0,0 +1,11 @@
+#!/bin/bash
+# Sets up iperf3.
+
+# Stop on errors
+set -e
+
+PACKAGES=(
+  iperf3
+)
+
+apt-get install -y --no-install-recommends ${PACKAGES[@]}
diff --git a/virtualization/Docker/setup_docker_prereqs b/virtualization/Docker/setup_docker_prereqs
index 302dfba2e1d..3bb4136c991 100755
--- a/virtualization/Docker/setup_docker_prereqs
+++ b/virtualization/Docker/setup_docker_prereqs
@@ -10,6 +10,7 @@ INSTALL_FFMPEG="${INSTALL_FFMPEG:-yes}"
 INSTALL_LIBCEC="${INSTALL_LIBCEC:-yes}"
 INSTALL_PHANTOMJS="${INSTALL_PHANTOMJS:-yes}"
 INSTALL_SSOCR="${INSTALL_SSOCR:-yes}"
+INSTALL_IPERF3="${INSTALL_IPERF3:-yes}"
 
 # Required debian packages for running hass or components
 PACKAGES=(
@@ -64,6 +65,10 @@ if [ "$INSTALL_SSOCR" == "yes" ]; then
   virtualization/Docker/scripts/ssocr
 fi
 
+if [ "$INSTALL_IPERF3" == "yes" ]; then
+  virtualization/Docker/scripts/iperf3
+fi
+
 # Remove packages
 apt-get remove -y --purge ${PACKAGES_DEV[@]}
 apt-get -y --purge autoremove