diff --git a/Text/XML/LibXML/SAX.chs b/Text/XML/LibXML/SAX.chs
--- a/Text/XML/LibXML/SAX.chs
+++ b/Text/XML/LibXML/SAX.chs
@@ -80,6 +80,7 @@
 		ctxFP <- withForeignPtr cCallbacks $ \sax ->
 			maybeWith withUTF8 filename $ \cFilename -> do
 				Context ctx <- {#call xmlCreatePushParserCtxt #} sax nullPtr nullPtr 0 cFilename
+				{#set xmlParserCtxt->replaceEntities #} ctx 1
 				newForeignPtr xmlFreeParserCtxt ctx
 		
 		return $ Parser ctxFP cCallbacks onError ref
diff --git a/libxml-sax.cabal b/libxml-sax.cabal
--- a/libxml-sax.cabal
+++ b/libxml-sax.cabal
@@ -1,5 +1,5 @@
 Name: libxml-sax
-Version: 0.5
+Version: 0.5.1
 stability: experimental
 Synopsis: Bindings for the libXML2 SAX interface
 License: MIT