diff --git a/src/backend/utils/adt/xml.c b/src/backend/utils/adt/xml.c
index 0953ad2becb..624851e83e6 100644
--- a/src/backend/utils/adt/xml.c
+++ b/src/backend/utils/adt/xml.c
@@ -1773,7 +1773,7 @@ xml_doctype_in_content(const xmlChar *str)
  * xmloption_arg, but a DOCTYPE node in the input can force DOCUMENT mode).
  *
  * If parsed_nodes isn't NULL and we parse in CONTENT mode, the list
- * of parsed nodes from the xmlParseBalancedChunkMemory call will be returned
+ * of parsed nodes from the xmlParseInNodeContext call will be returned
  * to *parsed_nodes.  (It is caller's responsibility to free that.)
  *
  * Errors normally result in ereport(ERROR), but if escontext is an
@@ -1799,7 +1799,6 @@ xml_parse(text *data, XmlOptionType xmloption_arg,
 	PgXmlErrorContext *xmlerrcxt;
 	volatile xmlParserCtxtPtr ctxt = NULL;
 	volatile xmlDocPtr doc = NULL;
-	volatile int save_keep_blanks = -1;
 
 	/*
 	 * This step looks annoyingly redundant, but we must do it to have a
@@ -1827,10 +1826,10 @@ xml_parse(text *data, XmlOptionType xmloption_arg,
 	PG_TRY();
 	{
 		bool		parse_as_document = false;
-		int			res_code;
 		size_t		count = 0;
 		xmlChar    *version = NULL;
 		int			standalone = 0;
+		int			options;
 
 		/* Any errors here are reported as hard ereport's */
 		xmlInitParser();
@@ -1841,6 +1840,8 @@ xml_parse(text *data, XmlOptionType xmloption_arg,
 		else
 		{
 			/* Parse and skip over the XML declaration, if any */
+			int			res_code;
+
 			res_code = parse_xml_decl(utf8string,
 									  &count, &version, NULL, &standalone);
 			if (res_code != 0)
@@ -1857,6 +1858,18 @@ xml_parse(text *data, XmlOptionType xmloption_arg,
 				parse_as_document = true;
 		}
 
+		/*
+		 * Select parse options.
+		 *
+		 * Note that here we try to apply DTD defaults (XML_PARSE_DTDATTR)
+		 * according to SQL/XML:2008 GR 10.16.7.d: 'Default values defined by
+		 * internal DTD are applied'.  As for external DTDs, we try to support
+		 * them too (see SQL/XML:2008 GR 10.16.7.e), but that doesn't really
+		 * happen because xmlPgEntityLoader prevents it.
+		 */
+		options = XML_PARSE_NOENT | XML_PARSE_DTDATTR
+			| (preserve_whitespace ? 0 : XML_PARSE_NOBLANKS);
+
 		/* initialize output parameters */
 		if (parsed_xmloptiontype != NULL)
 			*parsed_xmloptiontype = parse_as_document ? XMLOPTION_DOCUMENT :
@@ -1866,26 +1879,12 @@ xml_parse(text *data, XmlOptionType xmloption_arg,
 
 		if (parse_as_document)
 		{
-			int			options;
-
 			/* set up parser context used by xmlCtxtReadDoc */
 			ctxt = xmlNewParserCtxt();
 			if (ctxt == NULL || xmlerrcxt->err_occurred)
 				xml_ereport(xmlerrcxt, ERROR, ERRCODE_OUT_OF_MEMORY,
 							"could not allocate parser context");
 
-			/*
-			 * Select parse options.
-			 *
-			 * Note that here we try to apply DTD defaults (XML_PARSE_DTDATTR)
-			 * according to SQL/XML:2008 GR 10.16.7.d: 'Default values defined
-			 * by internal DTD are applied'.  As for external DTDs, we try to
-			 * support them too (see SQL/XML:2008 GR 10.16.7.e), but that
-			 * doesn't really happen because xmlPgEntityLoader prevents it.
-			 */
-			options = XML_PARSE_NOENT | XML_PARSE_DTDATTR
-				| (preserve_whitespace ? 0 : XML_PARSE_NOBLANKS);
-
 			doc = xmlCtxtReadDoc(ctxt, utf8string,
 								 NULL,	/* no URL */
 								 "UTF-8",
@@ -1907,7 +1906,9 @@ xml_parse(text *data, XmlOptionType xmloption_arg,
 		}
 		else
 		{
-			/* set up document that xmlParseBalancedChunkMemory will add to */
+			xmlNodePtr	root;
+
+			/* set up document that xmlParseInNodeContext will add to */
 			doc = xmlNewDoc(version);
 			if (doc == NULL || xmlerrcxt->err_occurred)
 				xml_ereport(xmlerrcxt, ERROR, ERRCODE_OUT_OF_MEMORY,
@@ -1920,16 +1921,35 @@ xml_parse(text *data, XmlOptionType xmloption_arg,
 							"could not allocate XML document");
 			doc->standalone = standalone;
 
-			/* set parse options --- have to do this the ugly way */
-			save_keep_blanks = xmlKeepBlanksDefault(preserve_whitespace ? 1 : 0);
+			root = xmlNewNode(NULL, (const xmlChar *) "content-root");
+			if (root == NULL || xmlerrcxt->err_occurred)
+				xml_ereport(xmlerrcxt, ERROR, ERRCODE_OUT_OF_MEMORY,
+							"could not allocate xml node");
+			xmlDocSetRootElement(doc, root);
 
 			/* allow empty content */
 			if (*(utf8string + count))
 			{
-				res_code = xmlParseBalancedChunkMemory(doc, NULL, NULL, 0,
-													   utf8string + count,
-													   parsed_nodes);
-				if (res_code != 0 || xmlerrcxt->err_occurred)
+				/* for some reason we need "char *" not "xmlChar *" here */
+				const char *data = (const char *) (utf8string + count);
+				xmlNodePtr *nodelist;
+				xmlNodePtr	locallist = NULL;
+				xmlParserErrors res_code;
+
+				/* xmlParseInNodeContext requires a non-null nodelist ptr */
+				nodelist = parsed_nodes ? parsed_nodes : &locallist;
+
+				res_code = xmlParseInNodeContext(root,
+												 data,
+												 strlen(data),
+												 options,
+												 nodelist);
+
+				/* drop the nodelist if caller didn't want it */
+				if (!parsed_nodes)
+					xmlFreeNodeList(locallist);
+
+				if (res_code != XML_ERR_OK || xmlerrcxt->err_occurred)
 				{
 					xml_errsave(escontext, xmlerrcxt,
 								ERRCODE_INVALID_XML_CONTENT,
@@ -1944,8 +1964,6 @@ fail:
 	}
 	PG_CATCH();
 	{
-		if (save_keep_blanks != -1)
-			xmlKeepBlanksDefault(save_keep_blanks);
 		if (doc != NULL)
 			xmlFreeDoc(doc);
 		if (ctxt != NULL)
@@ -1957,9 +1975,6 @@ fail:
 	}
 	PG_END_TRY();
 
-	if (save_keep_blanks != -1)
-		xmlKeepBlanksDefault(save_keep_blanks);
-
 	if (ctxt != NULL)
 		xmlFreeParserCtxt(ctxt);