diff --git a/org.eclipse.lemminx/src/main/java/org/eclipse/lemminx/extensions/dtd/contentmodel/CMDTDDocument.java b/org.eclipse.lemminx/src/main/java/org/eclipse/lemminx/extensions/dtd/contentmodel/CMDTDDocument.java
index 87d1174ef0..1528255656 100644
--- a/org.eclipse.lemminx/src/main/java/org/eclipse/lemminx/extensions/dtd/contentmodel/CMDTDDocument.java
+++ b/org.eclipse.lemminx/src/main/java/org/eclipse/lemminx/extensions/dtd/contentmodel/CMDTDDocument.java
@@ -22,9 +22,9 @@
 import java.util.Map;
 import java.util.Set;
 
+import org.apache.xerces.impl.XMLEntityManager.ScannedEntity;
 import org.apache.xerces.impl.dtd.DTDGrammar;
 import org.apache.xerces.impl.dtd.XMLDTDLoader;
-import org.apache.xerces.impl.dtd.XMLEntityDecl;
 import org.apache.xerces.xni.Augmentations;
 import org.apache.xerces.xni.XMLString;
 import org.apache.xerces.xni.XNIException;
@@ -90,6 +90,63 @@ public String getComment(String attrName) {
 		}
 	}
 
+	public static class ScannedDTDEntityDecl extends DTDEntityDecl {
+
+		private final String entityName;
+		private final String systemId;
+
+		private final String value;
+
+		private final int startNameLineNumber;
+		
+		private final int startNameColumnNumber;
+		
+		public ScannedDTDEntityDecl(String name, String value, ScannedEntity scannedEntity) {
+			super(-1, -1);
+			this.entityName = name;
+			this.systemId = scannedEntity.entityLocation.getExpandedSystemId();
+			this.value = value;
+			this.startNameLineNumber = scannedEntity.lineNumber - 1;
+			this.startNameColumnNumber = getEntityNameStartColumnNumber(entityName, scannedEntity);
+		}
+
+		@Override
+		public String getNodeName() {
+			return entityName;
+		}
+
+		@Override
+		public String getNotationName() {
+			return value;
+		}
+
+		@Override
+		public String getSystemId() {
+			return systemId;
+		}
+		
+		public int getStartNameColumnNumber() {
+			return startNameColumnNumber;
+		}
+
+		public int getStartNameLineNumber() {
+			return startNameLineNumber;
+		}
+		
+		private static int getEntityNameStartColumnNumber(String name, ScannedEntity scannedEntity) {
+			int endEntityIndex = scannedEntity.position;
+			int startLineIndex = endEntityIndex - scannedEntity.columnNumber + 1;
+			char[] ch = scannedEntity.ch;
+			for (int i = startLineIndex; i < endEntityIndex; i++) {
+				char c = ch[i];
+				if (c == name.charAt(0)) {
+					return i - startLineIndex;
+				}
+			}
+			return scannedEntity.columnNumber;
+		}
+	}
+
 	private final String uri;
 
 	private Map<String, DTDElementInfo> hierarchiesMap;
@@ -102,7 +159,7 @@ public String getComment(String attrName) {
 	private Map<String, DTDNodeInfo> attributes;
 	private DTDNodeInfo nodeInfo;
 
-	private List<Entity> entities;
+	private final List<Entity> entities;
 
 	public CMDTDDocument() {
 		this(null);
@@ -110,6 +167,7 @@ public CMDTDDocument() {
 
 	public CMDTDDocument(String uri) {
 		this.uri = uri;
+		this.entities = new ArrayList<>();
 	}
 
 	@Override
@@ -175,6 +233,13 @@ private CMElementDeclaration findElementDeclaration(String tag, String namespace
 		return null;
 	}
 
+	@Override
+	public void internalEntityDecl(String name, XMLString text, XMLString nonNormalizedText, Augmentations augs)
+			throws XNIException {
+		super.internalEntityDecl(name, text, nonNormalizedText, augs);
+		entities.add(new ScannedDTDEntityDecl(name, text.toString(), fEntityManager.getCurrentEntity()));
+	}
+
 	@Override
 	public void startContentModel(String elementName, Augmentations augs) throws XNIException {
 		if (hierarchiesMap == null) {
@@ -304,54 +369,6 @@ public boolean isDirty() {
 
 	@Override
 	public List<Entity> getEntities() {
-		if (entities == null) {
-			entities = computeEntities();
-		}
-		return entities;
-	}
-
-	private synchronized List<Entity> computeEntities() {
-		if (entities != null) {
-			return entities;
-		}
-		List<Entity> entities = new ArrayList<>();
-		fillEntities(fDTDGrammar, entities);
 		return entities;
 	}
-
-	/**
-	 * Collect entities declared in the DTD grammar.
-	 * 
-	 * @param grammar  the DTD grammar.
-	 * @param entities list to fill.
-	 */
-	private static void fillEntities(DTDGrammar grammar, List<Entity> entities) {
-		int index = 0;
-		XMLEntityDecl entityDecl = new XMLEntityDecl() {
-
-			@Override
-			public void setValues(String name, String publicId, String systemId, String baseSystemId, String notation,
-					String value, boolean isPE, boolean inExternal) {
-				if (inExternal && !isPE) {
-					// Only external entities (entities declared in the DTD) and not entity with %
-					// must be collected.
-					Entity entity = new DTDEntityDecl(0, 0) {
-						@Override
-						public String getNodeName() {
-							return name;
-						}
-
-						@Override
-						public String getNotationName() {
-							return value;
-						}
-					};
-					entities.add(entity);
-				}
-			};
-		};
-		while (grammar.getEntityDecl(index, entityDecl)) {
-			index++;
-		}
-	}
 }
diff --git a/org.eclipse.lemminx/src/main/java/org/eclipse/lemminx/extensions/entities/participants/EntitiesDefinitionParticipant.java b/org.eclipse.lemminx/src/main/java/org/eclipse/lemminx/extensions/entities/participants/EntitiesDefinitionParticipant.java
index 538ee3d4dc..d23d20f687 100644
--- a/org.eclipse.lemminx/src/main/java/org/eclipse/lemminx/extensions/entities/participants/EntitiesDefinitionParticipant.java
+++ b/org.eclipse.lemminx/src/main/java/org/eclipse/lemminx/extensions/entities/participants/EntitiesDefinitionParticipant.java
@@ -25,10 +25,12 @@
 import org.eclipse.lemminx.dom.DTDEntityDecl;
 import org.eclipse.lemminx.extensions.contentmodel.model.CMDocument;
 import org.eclipse.lemminx.extensions.contentmodel.model.ContentModelManager;
+import org.eclipse.lemminx.extensions.dtd.contentmodel.CMDTDDocument.ScannedDTDEntityDecl;
 import org.eclipse.lemminx.services.extensions.AbstractDefinitionParticipant;
 import org.eclipse.lemminx.services.extensions.IDefinitionRequest;
 import org.eclipse.lemminx.utils.XMLPositionUtility;
 import org.eclipse.lsp4j.LocationLink;
+import org.eclipse.lsp4j.Position;
 import org.eclipse.lsp4j.Range;
 import org.eclipse.lsp4j.jsonrpc.CancelChecker;
 import org.w3c.dom.Entity;
@@ -117,9 +119,19 @@ private static void searchInExternalEntities(String entityName, Range entityRang
 			List<Entity> entities = cmDocument.getEntities();
 			for (Entity entity : entities) {
 				if (entityName.equals(entity.getNodeName())) {
-					// TODO : retrieve location from the external entity?
+					ScannedDTDEntityDecl entityDecl = (ScannedDTDEntityDecl) entity;
+					locations.add(createLocationLink(entityRange, entityDecl));
 				}
 			}
 		}
 	}
+
+	public static LocationLink createLocationLink(Range originSelectionRange, ScannedDTDEntityDecl entityDecl) {
+		Range targetRange = new Range(
+				new Position(entityDecl.getStartNameLineNumber(), entityDecl.getStartNameColumnNumber()),
+				new Position(entityDecl.getStartNameLineNumber(),
+						entityDecl.getStartNameColumnNumber() + entityDecl.getNodeName().length()));
+		Range targetSelectionRange = targetRange;
+		return new LocationLink(entityDecl.getSystemId(), targetRange, targetSelectionRange, originSelectionRange);
+	}
 }