diff --git a/Text/Markdown/Inline.hs b/Text/Markdown/Inline.hs
--- a/Text/Markdown/Inline.hs
+++ b/Text/Markdown/Inline.hs
@@ -14,6 +14,8 @@
 import Data.Monoid (Monoid, mappend)
 import qualified Data.Map as Map
 import Text.Markdown.Types (Inline(..))
+import Data.XML.Types (Content (..))
+import Text.XML.Stream.Parse (decodeHtmlEntities)
 
 type RefMap = Map.Map Text Text
 
@@ -207,6 +209,7 @@
         <|> rawent "&apos;"
         <|> decEnt
         <|> hexEnt
+        <|> namedEnt
 
     rawent t = InlineHtml <$> string t
 
@@ -229,6 +232,14 @@
             , t
             , T.singleton c
             ]
+
+    namedEnt = do
+        _s <- char '&'
+        t <- takeWhile1 (/= ';')
+        _c <- char ';'
+        case decodeHtmlEntities t of
+            ContentText t' -> return $ InlineHtml t'
+            ContentEntity _ -> fail "Unknown named entity"
 
 hrefChar :: Parser Char
 hrefChar = (char '\\' *> anyChar) <|> satisfy (notInClass " )")
diff --git a/markdown.cabal b/markdown.cabal
--- a/markdown.cabal
+++ b/markdown.cabal
@@ -1,5 +1,5 @@
 Name:                markdown
-Version:             0.1.13.2
+Version:             0.1.14
 Synopsis:            Convert Markdown to HTML, with XSS protection
 Description:         This library leverages existing high-performance libraries (attoparsec, blaze-html, text, and conduit), and should integrate well with existing codebases.
 Homepage:            https://github.com/snoyberg/markdown
@@ -31,6 +31,8 @@
                      , data-default           >= 0.3
                      , xss-sanitize           >= 0.3.3
                      , containers
+                     , xml-types
+                     , xml-conduit
   ghc-options:       -Wall
 
 test-suite test
diff --git a/test/examples/entities.html b/test/examples/entities.html
--- a/test/examples/entities.html
+++ b/test/examples/entities.html
@@ -1,1 +1,1 @@
-<p>1 &lt; 2 &amp; 2 &gt; 1, also 1 &lt; 2 &amp; 2 &gt; 1   ý &amp;#xP;</p>
+<p>1 &lt; 2 &amp; 2 &gt; 1, also 1 &lt; 2 &amp; 2 &gt; 1   ý &amp;#xP; …</p>
diff --git a/test/examples/entities.md b/test/examples/entities.md
--- a/test/examples/entities.md
+++ b/test/examples/entities.md
@@ -1,1 +1,1 @@
-1 < 2 & 2 > 1, also 1 &lt; 2 &amp; 2 &gt; 1 &#160; &#xfd; &#xP;
+1 < 2 & 2 > 1, also 1 &lt; 2 &amp; 2 &gt; 1 &#160; &#xfd; &#xP; &hellip;