- Used extensively in large DTDs
- Provides the information to be included in place of an entity reference
<!ENTITY chapter1 SYSTEM "http://www.mybook/chapter1.txt">
<!ENTITY copyright "Copyright 1999 Bob Hopgood">
&chapter1;
in a text will be replaced by the
file chapter1.txt
and &copyright;
will be replaced
by Copyright 1999 Bob Hopgood