diff --git a/homeassistant/components/vlc_telnet/media_player.py b/homeassistant/components/vlc_telnet/media_player.py
index 303c5cfc85a4d..d1eefc0464bef 100644
--- a/homeassistant/components/vlc_telnet/media_player.py
+++ b/homeassistant/components/vlc_telnet/media_player.py
@@ -249,6 +249,10 @@ def set_volume_level(self, volume):
         self._vlc.set_volume(volume * MAX_VOLUME)
         self._volume = volume
 
+        if self._muted and self._volume > 0:
+            # This can happen if we were muted and then see a volume_up.
+            self._muted = False
+
     def media_play(self):
         """Send play command."""
         self._vlc.play()