diff --git a/Documents/Users/FeatureList.md b/Documents/Users/FeatureList.md
index 3c7045dd..0e59b83f 100644
--- a/Documents/Users/FeatureList.md
+++ b/Documents/Users/FeatureList.md
@@ -137,6 +137,10 @@ The layout is forced to change with Ctrl-w,s or Ctrl-w,v .
 
 Regex search is supported using the [ICU regex](https://developer.apple.com/library/ios/documentation/Foundation/Reference/NSRegularExpression_Class/Reference/Reference.html) format.
 
+Search and replace using matched string(&) in the replacement text is supported:
+
+Applying `:%s/foo/&bar/` to `foo bar` gives `foobar bar` 
+
 ## Insert mode commands
 
 C-y, C-e
diff --git a/XVim/Info.plist b/XVim/Info.plist
index b53f5ddb..09a6404b 100644
--- a/XVim/Info.plist
+++ b/XVim/Info.plist
@@ -20,6 +20,7 @@
 	<string>1</string>
 	<key>DVTPlugInCompatibilityUUIDs</key>
 	<array>
+		<string>ACA8656B-FEA8-4B6D-8E4A-93F4C95C362C</string>
 		<string>AD68E85B-441B-4301-B564-A45E4919A6AD</string>
 		<string>A2E4D43F-41F4-4FB9-BB94-7177011C9AED</string>
 		<string>37B30044-3B14-46BA-ABAA-F01000C27B63</string>
diff --git a/XVim/Test/XVimTester+Search.m b/XVim/Test/XVimTester+Search.m
index d7d9eeca..83f9e145 100644
--- a/XVim/Test/XVimTester+Search.m
+++ b/XVim/Test/XVimTester+Search.m
@@ -88,6 +88,8 @@ - (NSArray*)search_testcases{
     static NSString* replace11_result =  @"aaa ddd ccc\n"
                                          @"aaa.ddd.ccc\n\n";
     
+    static NSString* replace12_result = @"aaa bbbbb ccc\n"
+                                        @"bbbbb ccc ccc\n\n";
     return [NSArray arrayWithObjects:
             //
             // replace(:s)
@@ -107,6 +109,9 @@ - (NSArray*)search_testcases{
             XVimMakeTestCase(text6, 0,  0, @"Vj:s/$/fffff/g<CR>", replace7_result, 32, 0),
             // $, two
             XVimMakeTestCase(text7, 0,  0, @"Vj:s/$/fffff/g<CR>", replace8_result, 32, 0),
+            
+            XVimMakeTestCase(text7, 0, 0, @":%s/bbb/&bb/g<CR>", replace12_result, 19, 0),
+            XVimMakeTestCase(text7, 0, 0, @":%s/bb/&bb/g<CR>", replace12_result, 18, 0),
 
             // c, quit
             XVimMakeTestCase(text6, 0,  0, @"Vj:s/ccc/eeeee/gc<CR>q", text6, 8, 0),
@@ -205,6 +210,7 @@ - (NSArray*)search_testcases{
 
             // search followed by implicit replace. added to cover https://github.com/XVimProject/XVim/issues/730
             XVimMakeTestCase(text8, 0,  0, @":set vimregex<CR>/bbb<CR>:%s//ddd/g<CR>", replace11_result, 19, 0),
+            
             nil];
 }
 @end
diff --git a/XVim/XVimSearch.m b/XVim/XVimSearch.m
index 72e7bac9..c1f0da55 100644
--- a/XVim/XVimSearch.m
+++ b/XVim/XVimSearch.m
@@ -522,11 +522,11 @@ - (void)substitute:(NSString*)ex_command from:(NSUInteger)from to:(NSUInteger)to
     }
 }
 
-- (void)updateStartLocationInWindow:(XVimWindow*)window
+- (void)updateStartLocationInWindow:(XVimWindow*)window replacementString:(NSString*)replacementString
 {
     // global option on; consider all matches on each line
     if (self.isGlobal) {
-        self.replaceStartLocation = self.lastFoundRange.location + self.lastReplacementString.length;
+        self.replaceStartLocation = self.lastFoundRange.location + replacementString.length;
 
         // If search string contained a $, move to the next line
         if ([self.lastSearchCmd rangeOfString:@"$"].length > 0) {
@@ -539,22 +539,37 @@ - (void)updateStartLocationInWindow:(XVimWindow*)window
     }
 }
 
-- (void) updateEndLocationInWindow:(XVimWindow*)window
+- (void) updateEndLocationInWindow:(XVimWindow*)windo replacementString:(NSString*)replacementString
 {
-    self.replaceEndLocation += ([self.lastReplacementString length] - self.lastFoundRange.length);
+    self.replaceEndLocation += ([replacementString length] - self.lastFoundRange.length);
 }
 
 - (void)replaceCurrentInWindow:(XVimWindow*)window findNext:(BOOL)findNext
 {
     NSTextView* srcView = [window sourceView];
+    
+    NSString *textToReplace = [[srcView string] substringWithRange:self.lastFoundRange];
+    NSString *replacementString = self.lastReplacementString;
+    NSArray *splitsOnEscapedAmpersands = [replacementString componentsSeparatedByString:@"\\&"];
+    NSMutableArray *stringsToJoin = [[NSMutableArray alloc] init];
+    
+    for (NSString* stringWithoutEscapedAmpersands in splitsOnEscapedAmpersands) {
+        NSArray *splitsOnAmpersands = [stringWithoutEscapedAmpersands componentsSeparatedByString:@"&"];
+        NSString *springsWithMatch = [splitsOnAmpersands componentsJoinedByString:textToReplace];
+        [stringsToJoin addObject:springsWithMatch];
+    }
 
-    [srcView insertText:self.lastReplacementString replacementRange:self.lastFoundRange];
-    [srcView xvim_moveCursor:self.lastFoundRange.location + self.lastReplacementString.length preserveColumn:NO];
+    if ([stringsToJoin count] > 0) {
+        replacementString = [stringsToJoin componentsJoinedByString:@"\\&"];
+    }
+    
+    [srcView insertText:replacementString replacementRange:self.lastFoundRange];
+    [srcView xvim_moveCursor:self.lastFoundRange.location + replacementString.length preserveColumn:NO];
     self.numReplacements++;
 
     if (findNext) {
-        [self updateStartLocationInWindow:window];
-        [self updateEndLocationInWindow:window];
+        [self updateStartLocationInWindow:window replacementString:replacementString];
+        [self updateEndLocationInWindow:window replacementString:replacementString];
         [self findForwardFrom:self.replaceStartLocation to:self.replaceEndLocation inWindow:window];
     }
     else {
@@ -578,7 +593,7 @@ - (void)replaceCurrentToEndInWindow:(XVimWindow*)window
         [srcView insertText:self.lastReplacementString replacementRange:self.lastFoundRange];
         self.numReplacements++;
 
-        [self updateEndLocationInWindow:window];
+        [self updateEndLocationInWindow:window replacementString:self.lastReplacementString];
         [self findForwardFrom:self.replaceStartLocation to:self.replaceEndLocation inWindow:window];
     } while (self.lastFoundRange.location != NSNotFound);
     [self showStatusIfDoneInWindow:window];