diff --git a/lib/inlines.js b/lib/inlines.js
index 8a6d70ce..ea8419a4 100644
--- a/lib/inlines.js
+++ b/lib/inlines.js
@@ -220,7 +220,7 @@ var parseAutolink = function(block) {
     var dest;
     var node;
     if ((m = this.match(reEmailAutolink))) {
-        dest = m.slice(1, m.length - 1);
+        dest = decodeHTMLStrict(m.slice(1, m.length - 1));
         node = new Node("link");
         node._destination = normalizeURI("mailto:" + dest);
         node._title = "";
@@ -228,7 +228,7 @@ var parseAutolink = function(block) {
         block.appendChild(node);
         return true;
     } else if ((m = this.match(reAutolink))) {
-        dest = m.slice(1, m.length - 1);
+        dest = decodeHTMLStrict(m.slice(1, m.length - 1));
         node = new Node("link");
         node._destination = normalizeURI(dest);
         node._title = "";
diff --git a/test/regression.txt b/test/regression.txt
index c359e258..1703e3e3 100644
--- a/test/regression.txt
+++ b/test/regression.txt
@@ -625,3 +625,10 @@ A dotless i reference does not resolve against an ASCII I definition
 .
 <p>[ı]</p>
 ````````````````````````````````
+Entities inside autolinks (#263).
+
+```````````````````````````````` example
+<http://&gt;>
+.
+<p><a href="http://%3E">http://&gt;</a></p>
+````````````````````````````````