diff --git a/README.md b/README.md
index dd9a0d43..a242442d 100644
--- a/README.md
+++ b/README.md
@@ -106,7 +106,7 @@ parse(
 
 The `replace` callback allows you to swap an element with another React element.
 
-The first argument is an object with the same output as [htmlparser2](https://github.com/fb55/htmlparser2)'s [domhandler](https://github.com/fb55/domhandler#example):
+The first argument is an object with the same output as [htmlparser2](https://github.com/fb55/htmlparser2/tree/v3.10.1)'s [domhandler](https://github.com/fb55/domhandler#example):
 
 ```js
 parse('<br>', {
@@ -224,6 +224,34 @@ parse('<br>', {
 });
 ```
 
+### htmlparser2
+
+This library passes the following options to [htmlparser2](https://github.com/fb55/htmlparser2/tree/v3.10.1) on the server-side:
+
+```js
+{
+  decodeEntities: true,
+  lowerCaseAttributeNames: false
+}
+```
+
+By passing your own options, the default library options will be **replaced** (not merged).
+
+As a result, to enable `decodeEntities` and `xmlMode`, you need to do the following:
+
+```js
+parse('<p /><p />', {
+  htmlparser2: {
+    decodeEntities: true,
+    xmlMode: true
+  }
+});
+```
+
+See [htmlparser2 options](https://github.com/fb55/htmlparser2/wiki/Parser-options).
+
+> **Warning**: By overriding htmlparser2 options, there's a chance of breaking universal rendering. Do this at your own risk.
+
 ## FAQ
 
 #### Is this library XSS safe?
diff --git a/index.d.ts b/index.d.ts
index 4bcc997d..28b40dc3 100644
--- a/index.d.ts
+++ b/index.d.ts
@@ -1,13 +1,12 @@
 // TypeScript Version: 3.3
 
-import { DomElement } from 'domhandler';
+import { DomElement, ParserOptions } from 'htmlparser2';
 import domToReact from './lib/dom-to-react';
 import htmlToDOM from 'html-dom-parser';
 
 export interface HTMLReactParserOptions {
-  replace?: (
-    domNode: DomElement
-  ) => JSX.Element | object | void | undefined | null | false;
+  htmlparser2?: ParserOptions;
+
   library?: {
     cloneElement: (
       element: JSX.Element,
@@ -18,20 +17,24 @@ export interface HTMLReactParserOptions {
     isValidElement: (element: any) => boolean;
     [key: string]: any;
   };
+
+  replace?: (
+    domNode: DomElement
+  ) => JSX.Element | object | void | undefined | null | false;
 }
 
 /**
  * Converts HTML string to JSX element(s).
  *
- * @param  html    - HTML string to parse to JSX element(s).
+ * @param  html    - HTML string.
  * @param  options - Parser options.
- * @return         - JSX element(s).
+ * @return         - JSX element(s), empty array, or string.
  */
 declare function HTMLReactParser(
   html: string,
   options?: HTMLReactParserOptions
 ): ReturnType<typeof domToReact>;
 
-export { DomElement, domToReact, htmlToDOM };
+export { DomElement, ParserOptions, domToReact, htmlToDOM };
 
 export default HTMLReactParser;
diff --git a/index.js b/index.js
index b6fb44b9..a4e859ca 100644
--- a/index.js
+++ b/index.js
@@ -7,10 +7,12 @@ var domParserOptions = { decodeEntities: true, lowerCaseAttributeNames: false };
 /**
  * Converts HTML string to React elements.
  *
- * @param  {String}   html                    - The HTML string to parse to React.
- * @param  {Object}   [options]               - The parser options.
- * @param  {Function} [options.replace]       - The replace method.
- * @return {JSX.Element|JSX.Element[]|String} - Returns React element(s), string, or empty array.
+ * @param  {String}   html                    - HTML string.
+ * @param  {Object}   [options]               - Parser options.
+ * @param  {Object}   [options.htmlparser2]   - htmlparser2 options.
+ * @param  {Object}   [options.library]       - Library for React, Preact, etc.
+ * @param  {Function} [options.replace]       - Replace method.
+ * @return {JSX.Element|JSX.Element[]|String} - React element(s), empty array, or string.
  */
 function HTMLReactParser(html, options) {
   if (typeof html !== 'string') {
@@ -19,7 +21,11 @@ function HTMLReactParser(html, options) {
   if (html === '') {
     return [];
   }
-  return domToReact(htmlToDOM(html, domParserOptions), options);
+  options = options || {};
+  return domToReact(
+    htmlToDOM(html, options.htmlparser2 || domParserOptions),
+    options
+  );
 }
 
 HTMLReactParser.domToReact = domToReact;
diff --git a/package.json b/package.json
index aa28ec36..2b6a1d3e 100644
--- a/package.json
+++ b/package.json
@@ -32,7 +32,7 @@
     "dom"
   ],
   "dependencies": {
-    "@types/domhandler": "2.4.1",
+    "@types/htmlparser2": "3.10.1",
     "html-dom-parser": "0.3.0",
     "react-property": "1.0.1",
     "style-to-object": "0.3.0"
diff --git a/test/html-to-react.js b/test/html-to-react.js
index 31e59410..15bf7085 100644
--- a/test/html-to-react.js
+++ b/test/html-to-react.js
@@ -127,5 +127,30 @@ describe('HTML to React', () => {
         );
       });
     });
+
+    describe('library', () => {
+      it('converts with Preact instead of React', () => {
+        const Preact = require('preact');
+        const html = data.html.single;
+        const options = { library: Preact };
+        const preactElement = parse(html, options);
+        assert.deepEqual(preactElement, Preact.createElement('p', {}, 'foo'));
+      });
+    });
+
+    describe('htmlparser2', () => {
+      it('parses XHTML with xmlMode enabled', () => {
+        // using self-closing syntax (`/>`) for non-void elements is invalid
+        // which causes elements to nest instead of being rendered correctly
+        // enabling htmlparser2 option xmlMode resolves this issue
+        const html = '<ul><li/><li/></ul>';
+        const options = { htmlparser2: { xmlMode: true } };
+        const reactElements = parse(html, options);
+        assert.strictEqual(
+          render(reactElements),
+          '<ul><li></li><li></li></ul>'
+        );
+      });
+    });
   });
 });
diff --git a/test/types/index.test.tsx b/test/types/index.test.tsx
index 30314694..9fbef9b4 100644
--- a/test/types/index.test.tsx
+++ b/test/types/index.test.tsx
@@ -60,6 +60,18 @@ parse('<hr>', {
   }
 });
 
+// $ExpectType Element | Element[]
+parse('<p/><p/>', {
+  htmlparser2: {
+    xmlMode: true,
+    decodeEntities: true,
+    lowerCaseTags: false,
+    lowerCaseAttributeNames: false,
+    recognizeCDATA: true,
+    recognizeSelfClosing: true
+  }
+});
+
 // $ExpectType DomElement[]
 const domNodes = htmlToDOM('<div>text</div>');