diff --git a/src/compiler/parser/html-parser.js b/src/compiler/parser/html-parser.js
index dbc59146331..22f1b9d2423 100644
--- a/src/compiler/parser/html-parser.js
+++ b/src/compiler/parser/html-parser.js
@@ -30,25 +30,19 @@ const conditionalComment = /^<!\[/
 export const isPlainTextElement = makeMap('script,style,textarea', true)
 const reCache = {}
 
-const decodingMap = {
-  '&lt;': '<',
-  '&gt;': '>',
-  '&quot;': '"',
-  '&amp;': '&',
-  '&#10;': '\n',
-  '&#9;': '\t',
-  '&#39;': "'"
-}
-const encodedAttr = /&(?:lt|gt|quot|amp|#39);/g
-const encodedAttrWithNewLines = /&(?:lt|gt|quot|amp|#39|#10|#9);/g
-
 // #5992
 const isIgnoreNewlineTag = makeMap('pre,textarea', true)
 const shouldIgnoreFirstNewline = (tag, html) => tag && isIgnoreNewlineTag(tag) && html[0] === '\n'
 
-function decodeAttr (value, shouldDecodeNewlines) {
-  const re = shouldDecodeNewlines ? encodedAttrWithNewLines : encodedAttr
-  return value.replace(re, match => decodingMap[match])
+let textareaEl
+function decodeHTMLEnitities(value) {
+  textareaEl = textareaEl || document.createElement('textarea')
+  textareaEl.innerHTML = value
+  return textareaEl.value
+}
+
+function decodeAttr (value) {
+  return decodeHTMLEnitities(value)
 }
 
 export function parseHTML (html, options) {
@@ -229,12 +223,9 @@ export function parseHTML (html, options) {
     for (let i = 0; i < l; i++) {
       const args = match.attrs[i]
       const value = args[3] || args[4] || args[5] || ''
-      const shouldDecodeNewlines = tagName === 'a' && args[1] === 'href'
-        ? options.shouldDecodeNewlinesForHref
-        : options.shouldDecodeNewlines
       attrs[i] = {
         name: args[1],
-        value: decodeAttr(value, shouldDecodeNewlines)
+        value: decodeAttr(value)
       }
       if (process.env.NODE_ENV !== 'production' && options.outputSourceRange) {
         attrs[i].start = args.start + args[0].match(/^\s*/).length
diff --git a/src/compiler/parser/index.js b/src/compiler/parser/index.js
index 342d04ff864..d84723c915d 100644
--- a/src/compiler/parser/index.js
+++ b/src/compiler/parser/index.js
@@ -206,8 +206,6 @@ export function parse (
     expectHTML: options.expectHTML,
     isUnaryTag: options.isUnaryTag,
     canBeLeftOpenTag: options.canBeLeftOpenTag,
-    shouldDecodeNewlines: options.shouldDecodeNewlines,
-    shouldDecodeNewlinesForHref: options.shouldDecodeNewlinesForHref,
     shouldKeepComment: options.comments,
     outputSourceRange: options.outputSourceRange,
     start (tag, attrs, unary, start, end) {
diff --git a/src/platforms/web/entry-runtime-with-compiler.js b/src/platforms/web/entry-runtime-with-compiler.js
index 2bb46362bf9..186d0d3dd25 100644
--- a/src/platforms/web/entry-runtime-with-compiler.js
+++ b/src/platforms/web/entry-runtime-with-compiler.js
@@ -7,7 +7,6 @@ import { mark, measure } from 'core/util/perf'
 import Vue from './runtime/index'
 import { query } from './util/index'
 import { compileToFunctions } from './compiler/index'
-import { shouldDecodeNewlines, shouldDecodeNewlinesForHref } from './util/compat'
 
 const idToTemplate = cached(id => {
   const el = query(id)
@@ -64,8 +63,6 @@ Vue.prototype.$mount = function (
 
       const { render, staticRenderFns } = compileToFunctions(template, {
         outputSourceRange: process.env.NODE_ENV !== 'production',
-        shouldDecodeNewlines,
-        shouldDecodeNewlinesForHref,
         delimiters: options.delimiters,
         comments: options.comments
       }, this)
diff --git a/src/platforms/web/util/compat.js b/src/platforms/web/util/compat.js
deleted file mode 100644
index d95759cce31..00000000000
--- a/src/platforms/web/util/compat.js
+++ /dev/null
@@ -1,16 +0,0 @@
-/* @flow */
-
-import { inBrowser } from 'core/util/index'
-
-// check whether current browser encodes a char inside attribute values
-let div
-function getShouldDecode (href: boolean): boolean {
-  div = div || document.createElement('div')
-  div.innerHTML = href ? `<a href="\n"/>` : `<div a="\n"/>`
-  return div.innerHTML.indexOf('&#10;') > 0
-}
-
-// #3663: IE encodes newlines inside attribute values while other browsers don't
-export const shouldDecodeNewlines = inBrowser ? getShouldDecode(false) : false
-// #6828: chrome encodes content in a[href]
-export const shouldDecodeNewlinesForHref = inBrowser ? getShouldDecode(true) : false
diff --git a/test/unit/modules/compiler/parser.spec.js b/test/unit/modules/compiler/parser.spec.js
index d6521bbf625..399aa865857 100644
--- a/test/unit/modules/compiler/parser.spec.js
+++ b/test/unit/modules/compiler/parser.spec.js
@@ -2,6 +2,7 @@ import { parse } from 'compiler/parser/index'
 import { extend } from 'shared/util'
 import { baseOptions } from 'web/compiler/options'
 import { isIE, isEdge } from 'core/util/env'
+import Vue from 'vue'
 
 describe('parser', () => {
   it('simple element', () => {
@@ -881,4 +882,38 @@ describe('parser', () => {
     expect(ast.children[2].type).toBe(3)
     expect(ast.children[2].text).toBe('\ndef')
   })
+
+  it(`HTML entities in the value of attribute should be decoded`, () => {
+    const options = extend({}, baseOptions)
+    const ast = parse('<input value="white&nbsp;space,single-&#39;-quote,double-&quot;-quote,an-&amp;-ampersand,less-&lt;-than,great-&gt;-than,line-&#10;-break,tab-&#9;-space" />', options)
+    expect(ast.attrsList[0].value).toBe('white space,single-' + "'" + '-quote,double-' + '"' + '-quote,an-&-ampersand,less-<-than,great->-than,line-\n-break,tab-\t-space')
+  })
+
+  it(`HTML entities in template should be decoded`, () => {
+    const vm = new Vue({
+      template: '<test></test>',
+      components: {
+        test: {
+          template: '<input value="&#102;&#111;&#111;">'
+        }
+      }
+    }).$mount()
+    expect(vm.$el.value).toBe('foo')
+  })
+
+  it(`HTML entities in the value of props should be decoded`, () => {
+    const vm = new Vue({
+      template: '<test name="-&nbsp;-"></test>',
+      components: {
+        test: {
+          template: '<div>{{ name }}</div>',
+          props: {
+            name: String,
+          },
+        }
+      }
+    }).$mount()
+    expect(vm.$el.innerHTML).toBe('-&nbsp;-')
+    expect(vm.$el.innerText).toBe('- -')
+  })
 })