diff --git a/usr.bin/sed/compile.c b/usr.bin/sed/compile.c
index e03103420559..99fa2b17a92f 100644
--- a/usr.bin/sed/compile.c
+++ b/usr.bin/sed/compile.c
@@ -49,6 +49,7 @@ static const char sccsid[] = "@(#)compile.c	8.1 (Berkeley) 6/6/93";
 #include <fcntl.h>
 #include <limits.h>
 #include <regex.h>
+#include <stdbool.h>
 #include <stdio.h>
 #include <stdlib.h>
 #include <string.h>
@@ -365,6 +366,51 @@ semicolon:	EATSPACE();
 	}
 }
 
+static int
+hex2char(const char *in, char *out, int len)
+{
+	long ord;
+	char *endptr, hexbuf[3];
+
+	hexbuf[0] = in[0];
+	hexbuf[1] = len > 1 ? in[1] : '\0';
+	hexbuf[2] = '\0';
+
+	errno = 0;
+	ord = strtol(hexbuf, &endptr, 16);
+	if (*endptr != '\0' || errno != 0)
+		return (ERANGE);
+	*out = (char)ord;
+	return (0);
+}
+
+static bool
+hexdigit(char c)
+{
+	int lc;
+
+	lc = tolower(c);
+	return isdigit(lc) || (lc >= 'a' && lc <= 'f');
+}
+
+static bool
+dohex(const char *in, char *out, int *len)
+{
+	int tmplen;
+
+	if (!hexdigit(in[0]))
+		return (false);
+	tmplen = 1;
+	if (hexdigit(in[1]))
+		++tmplen;
+	if (hex2char(in, out, tmplen) == 0) {
+		*len = tmplen;
+		return (true);
+	}
+
+	return (false);
+}
+
 /*
  * Get a delimited string.  P points to the delimiter of the string; d points
  * to a buffer area.  Newline and delimiter escapes are processed; other
@@ -377,6 +423,7 @@ semicolon:	EATSPACE();
 static char *
 compile_delimited(char *p, char *d, int is_tr)
 {
+	int hexlen;
 	char c;
 
 	c = *p++;
@@ -412,6 +459,12 @@ compile_delimited(char *p, char *d, int is_tr)
 			}
 			p += 2;
 			continue;
+		} else if (*p == '\\' && p[1] == 'x') {
+			if (dohex(&p[2], d, &hexlen)) {
+				++d;
+				p += hexlen + 2;
+				continue;
+			}
 		} else if (*p == '\\' && p[1] == '\\') {
 			if (is_tr)
 				p++;
@@ -431,7 +484,7 @@ compile_delimited(char *p, char *d, int is_tr)
 static char *
 compile_ccl(char **sp, char *t)
 {
-	int c, d;
+	int c, d, hexlen;
 	char *s = *sp;
 
 	*t++ = *s++;
@@ -459,6 +512,10 @@ compile_ccl(char **sp, char *t)
 				*t = '\t';
 				s++;
 				break;
+			case 'x':
+				if (dohex(&s[2], t, &hexlen))
+					s += hexlen + 1;
+				break;
 			}
 		}
 	}
@@ -499,7 +556,7 @@ static char *
 compile_subst(char *p, struct s_subst *s)
 {
 	static char lbuf[_POSIX2_LINE_MAX + 1];
-	int asize, size;
+	int asize, hexlen, size;
 	u_char ref;
 	char c, *text, *op, *sp;
 	int more = 1, sawesc = 0;
@@ -563,6 +620,21 @@ compile_subst(char *p, struct s_subst *s)
 					case 't':
 						*p = '\t';
 						break;
+					case 'x':
+#define	ADVANCE_N(s, n)					\
+	do {						\
+		char *adv = (s);			\
+		while (*(adv + (n) - 1) != '\0') {	\
+			*adv = *(adv + (n));		\
+			++adv;				\
+		}					\
+		*adv = '\0';				\
+	} while (0);
+						if (dohex(&p[1], p, &hexlen)) {
+							ADVANCE_N(p + 1,
+							    hexlen);
+						}
+						break;
 					}
 				}
 			} else if (*p == c) {
diff --git a/usr.bin/sed/tests/sed2_test.sh b/usr.bin/sed/tests/sed2_test.sh
index 48e1c2b216f6..c7f4b29a8f88 100755
--- a/usr.bin/sed/tests/sed2_test.sh
+++ b/usr.bin/sed/tests/sed2_test.sh
@@ -88,10 +88,39 @@ escape_subst_body()
 	atf_check -o 'inline:abcx\n' sed 's/[ \r\t]//g' c
 }
 
+atf_test_case hex_subst
+hex_subst_head()
+{
+	atf_set "descr" "Verify proper conversion of hex escapes"
+}
+hex_subst_body()
+{
+	printf "test='foo'" > a
+	printf "test='27foo'" > b
+	printf "\rn" > c
+	printf "xx" > d
+
+	atf_check -o 'inline:test="foo"' sed 's/\x27/"/g' a
+	atf_check -o "inline:'test'='foo'" sed 's/test/\x27test\x27/g' a
+
+	# Make sure we take trailing digits literally.
+	atf_check -o "inline:test=\"foo'" sed 's/\x2727/"/g' b
+
+	# Single digit \x should work as well.
+	atf_check -o "inline:xn" sed 's/\xd/x/' c
+
+	# Invalid digit should cause us to ignore the sequence.  This test
+	# invokes UB, escapes of an ordinary character.  A future change will
+	# make regex(3) on longer tolerate this and we'll need to adjust what
+	# we're doing, but for now this will suffice.
+	atf_check -o "inline:" sed 's/\xx//' d
+}
+
 atf_init_test_cases()
 {
 	atf_add_test_case inplace_command_q
 	atf_add_test_case inplace_hardlink_src
 	atf_add_test_case inplace_symlink_src
 	atf_add_test_case escape_subst
+	atf_add_test_case hex_subst
 }