diff --git a/homeassistant/components/matter/sensor.py b/homeassistant/components/matter/sensor.py
index 0832675744e..3077ff10cc6 100644
--- a/homeassistant/components/matter/sensor.py
+++ b/homeassistant/components/matter/sensor.py
@@ -442,6 +442,9 @@ DISCOVERY_SCHEMAS = [
             key="PowerSourceBatVoltage",
             translation_key="battery_voltage",
             native_unit_of_measurement=UnitOfElectricPotential.MILLIVOLT,
+            # Battery voltages are low-voltage diagnostics; use 2 decimals in volts
+            # to provide finer granularity than mains-level voltage sensors.
+            suggested_display_precision=2,
             suggested_unit_of_measurement=UnitOfElectricPotential.VOLT,
             device_class=SensorDeviceClass.VOLTAGE,
             entity_category=EntityCategory.DIAGNOSTIC,
diff --git a/tests/components/matter/snapshots/test_sensor.ambr b/tests/components/matter/snapshots/test_sensor.ambr
index 81778716447..a08dc90cd46 100644
--- a/tests/components/matter/snapshots/test_sensor.ambr
+++ b/tests/components/matter/snapshots/test_sensor.ambr
@@ -1401,7 +1401,7 @@
     'object_id_base': 'Battery voltage',
     'options': dict({
       'sensor': dict({
-        'suggested_display_precision': 0,
+        'suggested_display_precision': 2,
       }),
       'sensor.private': dict({
         'suggested_unit_of_measurement': <UnitOfElectricPotential.VOLT: 'V'>,
@@ -1564,7 +1564,7 @@
     'object_id_base': 'Battery voltage',
     'options': dict({
       'sensor': dict({
-        'suggested_display_precision': 0,
+        'suggested_display_precision': 2,
       }),
       'sensor.private': dict({
         'suggested_unit_of_measurement': <UnitOfElectricPotential.VOLT: 'V'>,
@@ -1781,7 +1781,7 @@
     'object_id_base': 'Battery voltage',
     'options': dict({
       'sensor': dict({
-        'suggested_display_precision': 0,
+        'suggested_display_precision': 2,
       }),
       'sensor.private': dict({
         'suggested_unit_of_measurement': <UnitOfElectricPotential.VOLT: 'V'>,
@@ -2109,7 +2109,7 @@
     'object_id_base': 'Battery voltage',
     'options': dict({
       'sensor': dict({
-        'suggested_display_precision': 0,
+        'suggested_display_precision': 2,
       }),
       'sensor.private': dict({
         'suggested_unit_of_measurement': <UnitOfElectricPotential.VOLT: 'V'>,
@@ -2661,7 +2661,7 @@
     'object_id_base': 'Battery voltage',
     'options': dict({
       'sensor': dict({
-        'suggested_display_precision': 0,
+        'suggested_display_precision': 2,
       }),
       'sensor.private': dict({
         'suggested_unit_of_measurement': <UnitOfElectricPotential.VOLT: 'V'>,
@@ -2900,7 +2900,7 @@
     'object_id_base': 'Battery voltage',
     'options': dict({
       'sensor': dict({
-        'suggested_display_precision': 0,
+        'suggested_display_precision': 2,
       }),
       'sensor.private': dict({
         'suggested_unit_of_measurement': <UnitOfElectricPotential.VOLT: 'V'>,
@@ -4210,7 +4210,7 @@
     'object_id_base': 'Battery voltage',
     'options': dict({
       'sensor': dict({
-        'suggested_display_precision': 0,
+        'suggested_display_precision': 2,
       }),
       'sensor.private': dict({
         'suggested_unit_of_measurement': <UnitOfElectricPotential.VOLT: 'V'>,
@@ -5070,7 +5070,7 @@
     'object_id_base': 'Battery voltage',
     'options': dict({
       'sensor': dict({
-        'suggested_display_precision': 0,
+        'suggested_display_precision': 2,
       }),
       'sensor.private': dict({
         'suggested_unit_of_measurement': <UnitOfElectricPotential.VOLT: 'V'>,
@@ -5452,7 +5452,7 @@
     'object_id_base': 'Battery voltage',
     'options': dict({
       'sensor': dict({
-        'suggested_display_precision': 0,
+        'suggested_display_precision': 2,
       }),
       'sensor.private': dict({
         'suggested_unit_of_measurement': <UnitOfElectricPotential.VOLT: 'V'>,
@@ -6112,7 +6112,7 @@
     'object_id_base': 'Battery voltage',
     'options': dict({
       'sensor': dict({
-        'suggested_display_precision': 0,
+        'suggested_display_precision': 2,
       }),
       'sensor.private': dict({
         'suggested_unit_of_measurement': <UnitOfElectricPotential.VOLT: 'V'>,
@@ -6587,7 +6587,7 @@
     'object_id_base': 'Battery voltage',
     'options': dict({
       'sensor': dict({
-        'suggested_display_precision': 0,
+        'suggested_display_precision': 2,
       }),
       'sensor.private': dict({
         'suggested_unit_of_measurement': <UnitOfElectricPotential.VOLT: 'V'>,
@@ -7204,7 +7204,7 @@
     'object_id_base': 'Battery voltage',
     'options': dict({
       'sensor': dict({
-        'suggested_display_precision': 0,
+        'suggested_display_precision': 2,
       }),
       'sensor.private': dict({
         'suggested_unit_of_measurement': <UnitOfElectricPotential.VOLT: 'V'>,
@@ -11825,7 +11825,7 @@
     'object_id_base': 'Battery voltage',
     'options': dict({
       'sensor': dict({
-        'suggested_display_precision': 0,
+        'suggested_display_precision': 2,
       }),
       'sensor.private': dict({
         'suggested_unit_of_measurement': <UnitOfElectricPotential.VOLT: 'V'>,
@@ -13103,7 +13103,7 @@
     'object_id_base': 'Battery voltage',
     'options': dict({
       'sensor': dict({
-        'suggested_display_precision': 0,
+        'suggested_display_precision': 2,
       }),
       'sensor.private': dict({
         'suggested_unit_of_measurement': <UnitOfElectricPotential.VOLT: 'V'>,