diff --git a/src/compiler/parser/html-parser.js b/src/compiler/parser/html-parser.js
index dbc59146331..7a98202975f 100644
--- a/src/compiler/parser/html-parser.js
+++ b/src/compiler/parser/html-parser.js
@@ -31,6 +31,7 @@ export const isPlainTextElement = makeMap('script,style,textarea', true)
 const reCache = {}
 
 const decodingMap = {
+  ' ': ' ',
   '&lt;': '<',
   '&gt;': '>',
   '&quot;': '"',
@@ -39,8 +40,8 @@ const decodingMap = {
   '&#9;': '\t',
   '&#39;': "'"
 }
-const encodedAttr = /&(?:lt|gt|quot|amp|#39);/g
-const encodedAttrWithNewLines = /&(?:lt|gt|quot|amp|#39|#10|#9);/g
+const encodedAttr = /&(?:lt|gt|quot|amp|#39|nbsp);/g
+const encodedAttrWithNewLines = /&(?:lt|gt|quot|amp|#39|nbsp|#10|#9);/g
 
 // #5992
 const isIgnoreNewlineTag = makeMap('pre,textarea', true)
diff --git a/test/unit/modules/compiler/parser.spec.js b/test/unit/modules/compiler/parser.spec.js
index d6521bbf625..3bffc06e9ba 100644
--- a/test/unit/modules/compiler/parser.spec.js
+++ b/test/unit/modules/compiler/parser.spec.js
@@ -881,4 +881,10 @@ describe('parser', () => {
     expect(ast.children[2].type).toBe(3)
     expect(ast.children[2].text).toBe('\ndef')
   })
+
+  it(`should decode &nbsp; in the value of attribute`, () => {
+    const options = extend({}, baseOptions)
+    const ast = parse('<input value="white&nbsp;space" />', options)
+    expect(ast.attrsList[0].value).toBe('white space')
+  })
 })