diff --git a/lib/rules_inline/entity.js b/lib/rules_inline/entity.js
index 6fcc889..3a985ab 100644
--- a/lib/rules_inline/entity.js
+++ b/lib/rules_inline/entity.js
@@ -13,36 +13,43 @@ var NAMED_RE   = /^&([a-z][a-z0-9]{1,31});/i;
 
 
 module.exports = function entity(state, silent) {
-  var ch, code, match, pos = state.pos, max = state.posMax;
+  var ch, code, match, token, pos = state.pos, max = state.posMax;
 
-  if (state.src.charCodeAt(pos) !== 0x26/* & */) { return false; }
+  if (state.src.charCodeAt(pos) !== 0x26/* & */) return false;
 
-  if (pos + 1 < max) {
-    ch = state.src.charCodeAt(pos + 1);
+  if (pos + 1 >= max) return false;
 
-    if (ch === 0x23 /* # */) {
-      match = state.src.slice(pos).match(DIGITAL_RE);
-      if (match) {
+  ch = state.src.charCodeAt(pos + 1);
+
+  if (ch === 0x23 /* # */) {
+    match = state.src.slice(pos).match(DIGITAL_RE);
+    if (match) {
+      if (!silent) {
+        code = match[1][0].toLowerCase() === 'x' ? parseInt(match[1].slice(1), 16) : parseInt(match[1], 10);
+
+        token         = state.push('text_special', '', 0);
+        token.content = isValidEntityCode(code) ? fromCodePoint(code) : fromCodePoint(0xFFFD);
+        token.markup  = match[0];
+        token.info    = 'entity';
+      }
+      state.pos += match[0].length;
+      return true;
+    }
+  } else {
+    match = state.src.slice(pos).match(NAMED_RE);
+    if (match) {
+      if (has(entities, match[1])) {
         if (!silent) {
-          code = match[1][0].toLowerCase() === 'x' ? parseInt(match[1].slice(1), 16) : parseInt(match[1], 10);
-          state.pending += isValidEntityCode(code) ? fromCodePoint(code) : fromCodePoint(0xFFFD);
+          token         = state.push('text_special', '', 0);
+          token.content = entities[match[1]];
+          token.markup  = match[0];
+          token.info    = 'entity';
         }
         state.pos += match[0].length;
         return true;
       }
-    } else {
-      match = state.src.slice(pos).match(NAMED_RE);
-      if (match) {
-        if (has(entities, match[1])) {
-          if (!silent) { state.pending += entities[match[1]]; }
-          state.pos += match[0].length;
-          return true;
-        }
-      }
     }
   }
 
-  if (!silent) { state.pending += '&'; }
-  state.pos++;
-  return true;
+  return false;
 };
diff --git a/test/fixtures/markdown-it/smartquotes.txt b/test/fixtures/markdown-it/smartquotes.txt
index 72bb2dc..afab445 100644
--- a/test/fixtures/markdown-it/smartquotes.txt
+++ b/test/fixtures/markdown-it/smartquotes.txt
@@ -177,3 +177,16 @@ Should be escapable:
 <p>&quot;foo&quot;</p>
 <p>&quot;foo&quot;</p>
 .
+
+Should not replace entities:
+.
+&quot;foo&quot;
+
+&quot;foo"
+
+"foo&quot;
+.
+<p>&quot;foo&quot;</p>
+<p>&quot;foo&quot;</p>
+<p>&quot;foo&quot;</p>
+.
diff --git a/test/fixtures/markdown-it/typographer.txt b/test/fixtures/markdown-it/typographer.txt
index ca3cc0a..5968b89 100644
--- a/test/fixtures/markdown-it/typographer.txt
+++ b/test/fixtures/markdown-it/typographer.txt
@@ -67,6 +67,13 @@ copyright should be escapable
 <p>(c)</p>
 .
 
+shouldn't replace entities
+.
+&#40;c) (c&#41; (c)
+.
+<p>(c) (c) ©</p>
+.
+
 
 dashes
 .