diff --git a/README.md b/README.md
index 0a54ff4f..1e9921d3 100644
--- a/README.md
+++ b/README.md
@@ -54,9 +54,9 @@ does not do this automatically.
 ## Features & Roadmap
 * Matrix → Telegram
   * [x] Plaintext messages
-  * [ ] Formatted messages
+  * [x] Formatted messages
     * [ ] Bot commands (!command -> /command)
-    * [ ] Mentions
+    * [x] Mentions
   * [ ] Locations
   * [ ] Images
   * [ ] Files
diff --git a/mautrix_telegram/__main__.py b/mautrix_telegram/__main__.py
index 1111725a..8909a818 100644
--- a/mautrix_telegram/__main__.py
+++ b/mautrix_telegram/__main__.py
@@ -30,6 +30,7 @@ from .db import init as init_db
 from .user import init as init_user
 from .portal import init as init_portal
 from .puppet import init as init_puppet
+from .formatter import init as init_formatter
 
 log = logging.getLogger("mau")
 time_formatter = logging.Formatter("[%(asctime)s] [%(levelname)s@%(name)s] %(message)s")
@@ -75,6 +76,7 @@ context = (appserv, db, log, config)
 
 with appserv.run(config["appservice.hostname"], config["appservice.port"]) as start:
     init_db(db_factory)
+    init_formatter(context)
     init_portal(context)
     init_puppet(context)
     init_user(context)
diff --git a/mautrix_telegram/formatter.py b/mautrix_telegram/formatter.py
index c17f61fc..879ac111 100644
--- a/mautrix_telegram/formatter.py
+++ b/mautrix_telegram/formatter.py
@@ -15,11 +15,160 @@
 # along with this program.  If not, see <http://www.gnu.org/licenses/>.
 import re
 from html import escape, unescape
+from html.parser import HTMLParser
+from collections import deque
 from telethon.tl.types import *
 from . import user as u, puppet as p
 
+log = None
+
+
+class MatrixParser(HTMLParser):
+    matrix_to_regex = re.compile("https://matrix.to/#/(@.+)")
+
+    def __init__(self):
+        super().__init__()
+        self.text = ""
+        self.entities = []
+        self._building_entities = {}
+        self._list_counter = 0
+        self._open_tags = deque()
+        self._open_tags_meta = deque()
+        self._previous_ended_line = True
+
+    def handle_starttag(self, tag, attrs):
+        self._open_tags.appendleft(tag)
+        self._open_tags_meta.appendleft(0)
+        attrs = dict(attrs)
+        EntityType = None
+        args = {}
+        if tag == "strong" or tag == "b":
+            EntityType = MessageEntityBold
+        elif tag == "em" or tag == "i":
+            EntityType = MessageEntityItalic
+        elif tag == "code":
+            try:
+                pre = self._building_entities["pre"]
+                try:
+                    pre.language = attrs["class"][len("language-"):]
+                except KeyError:
+                    pass
+            except KeyError:
+                EntityType = MessageEntityCode
+        elif tag == "pre":
+            EntityType = MessageEntityPre
+            args["language"] = ""
+        elif tag == "a":
+            try:
+                url = attrs["href"]
+            except KeyError:
+                return
+            mention = self.matrix_to_regex.search(url)
+            if mention:
+                mxid = mention.group(1)
+                puppet_match = p.Puppet.mxid_regex.search(mxid)
+                if puppet_match:
+                    user = p.Puppet.get(puppet_match.group(1), create=False)
+                else:
+                    user = u.User.get_by_mxid(mxid, create=False)
+                if not user:
+                    return
+                if user.username:
+                    EntityType = MessageEntityMention
+                    url = f"@{user.username}"
+                else:
+                    EntityType = MessageEntityMentionName
+                    args["user_id"] = user.tgid
+            elif url.startswith("mailto:"):
+                url = url[len("mailto:"):]
+                EntityType = MessageEntityEmail
+            else:
+                if self.get_starttag_text() == url:
+                    EntityType = MessageEntityUrl
+                else:
+                    EntityType = MessageEntityTextUrl
+                    args["url"] = url
+                    url = None
+            self._open_tags_meta.popleft()
+            self._open_tags_meta.appendleft(url)
+
+        if EntityType and tag not in self._building_entities:
+            self._building_entities[tag] = EntityType(offset=len(self.text), length=0, **args)
+
+    def _list_depth(self):
+        depth = 0
+        for tag in self._open_tags:
+            if tag == "ol" or tag == "ul":
+                depth += 1
+        return depth
+
+    def handle_data(self, text):
+        text = unescape(text)
+        previous_tag = self._open_tags[0] if len(self._open_tags) > 0 else ""
+        list_format_offset = 0
+        if previous_tag == "a":
+            url = self._open_tags_meta[0]
+            if url:
+                text = url
+        elif len(self._open_tags) > 1 and self._previous_ended_line and previous_tag == "li":
+            list_type = self._open_tags[1]
+            indent = (self._list_depth() - 1) * 4 * " "
+            text = text.strip("\n")
+            if len(text) == 0:
+                return
+            elif list_type == "ul":
+                text = f"{indent}* {text}"
+                list_format_offset = len(indent) + 2
+            elif list_type == "ol":
+                n = self._open_tags_meta[1]
+                n += 1
+                self._open_tags_meta[1] = n
+                text = f"{indent}{n}. {text}"
+                list_format_offset = len(indent) + 3
+        for tag, entity in self._building_entities.items():
+            entity.length += len(text.strip("\n"))
+            entity.offset += list_format_offset
+
+        if text.endswith("\n"):
+            self._previous_ended_line = True
+        else:
+            self._previous_ended_line = False
+
+        self.text += text
+
+    def handle_endtag(self, tag):
+        try:
+            self._open_tags.popleft()
+            self._open_tags_meta.popleft()
+        except IndexError:
+            pass
+        if (tag == "ul" or tag == "ol") and self.text.endswith("\n"):
+            self.text = self.text[:-1]
+        entity = self._building_entities.pop(tag, None)
+        if entity:
+            self.entities.append(entity)
+
+
+def matrix_to_telegram(html):
+    try:
+        parser = MatrixParser()
+        parser.feed(html)
+        return parser.text, parser.entities
+    except:
+        log.exception("Failed to convert Matrix format:\nhtml=%s", html)
+
 
 def telegram_to_matrix(text, entities):
+    try:
+        return _telegram_to_matrix(text, entities)
+    except:
+        log.exception("Failed to convert Telegram format:\n"
+                      "message=%s\n"
+                      "entities=%s",
+                      text, entities)
+
+
+def _telegram_to_matrix(text, entities):
     if not entities:
         return text
     html = []
@@ -86,3 +235,9 @@ def telegram_to_matrix(text, entities):
         last_offset = entity.offset + (0 if skip_entity else entity.length)
     html.append(text[last_offset:])
     return "".join(html)
+
+
+def init(context):
+    global log
+    _, _, parent_log, _ = context
+    log = parent_log.getChild("formatter")
diff --git a/mautrix_telegram/portal.py b/mautrix_telegram/portal.py
index 0b3d129b..e37ebd1b 100644
--- a/mautrix_telegram/portal.py
+++ b/mautrix_telegram/portal.py
@@ -79,7 +79,11 @@ class Portal:
     def handle_matrix_message(self, sender, message):
         type = message["msgtype"]
         if type == "m.text":
-            sender.client.send_message(self.peer, message["body"])
+            if "format" in message and message["format"] == "org.matrix.custom.html":
+                message, entities = formatter.matrix_to_telegram(message["formatted_body"])
+                sender.send_message(self.peer, message, entities=entities)
+            else:
+                sender.send_message(self.peer, message["body"])
 
     def handle_telegram_message(self, sender, evt):
         self.log.debug("Sending %s to %s by %d", evt.message, self.mxid, sender.id)
diff --git a/mautrix_telegram/puppet.py b/mautrix_telegram/puppet.py
index ce7e4c77..734c26f9 100644
--- a/mautrix_telegram/puppet.py
+++ b/mautrix_telegram/puppet.py
@@ -13,10 +13,8 @@
 #
 # You should have received a copy of the GNU General Public License
 # along with this program.  If not, see <http://www.gnu.org/licenses/>.
-from telethon import TelegramClient
-from telethon.tl.types import User as UserEntity, Chat as ChatEntity, Channel as ChannelEntity
+import re
 from .db import Puppet as DBPuppet
-from . import portal as p
 
 config = None
 
@@ -36,6 +34,10 @@ class Puppet:
 
         self.cache[id] = self
 
+    @property
+    def tgid(self):
+        return self.id
+
     def to_db(self):
         return self.db.merge(
             DBPuppet(id=self.id, username=self.username, displayname=self.displayname))
@@ -109,3 +111,6 @@ def init(context):
     global config
     Puppet.az, Puppet.db, log, config = context
     Puppet.log = log.getChild("puppet")
+    localpart = config.get("bridge.alias_template", "telegram_{}").format("(.+)")
+    hs = config["homeserver"]["domain"]
+    Puppet.mxid_regex = re.compile(f"@{localpart}:{hs}")
diff --git a/mautrix_telegram/user.py b/mautrix_telegram/user.py
index dde58eaf..7c799cea 100644
--- a/mautrix_telegram/user.py
+++ b/mautrix_telegram/user.py
@@ -16,7 +16,8 @@
 import traceback
 from telethon import TelegramClient
 from telethon.tl.types import User as UserEntity, Chat as ChatEntity, Channel as ChannelEntity, \
-    UpdateShortMessage, UpdateShortChatMessage
+    UpdateShortMessage, UpdateShortChatMessage, Message, UpdateShortSentMessage
+from telethon.tl.functions.messages import SendMessageRequest
 from .db import User as DBUser
 from . import portal as po, puppet as pu
 
@@ -89,6 +90,30 @@ class User:
         self.client = None
         self.connected = False
 
+    def send_message(self, entity, message, reply_to=None, entities=None, link_preview=True):
+        entity = self.client.get_input_entity(entity)
+
+        request = SendMessageRequest(
+            peer=entity,
+            message=message,
+            entities=entities,
+            no_webpage=not link_preview,
+            reply_to_msg_id=self.client._get_reply_to(reply_to)
+        )
+        result = self.client(request)
+        if isinstance(result, UpdateShortSentMessage):
+            return Message(
+                id=result.id,
+                to_id=entity,
+                message=message,
+                date=result.date,
+                out=result.out,
+                media=result.media,
+                entities=result.entities
+            )
+
+        return self.client._get_response_message(request, result)
+
     def sync_dialogs(self):
         dialogs = self.client.get_dialogs(limit=30)
         for dialog in dialogs: