diff --git a/homeassistant/components/rest/manifest.json b/homeassistant/components/rest/manifest.json
index 8c8b7f39609..d03dce3017b 100644
--- a/homeassistant/components/rest/manifest.json
+++ b/homeassistant/components/rest/manifest.json
@@ -2,7 +2,7 @@
   "domain": "rest",
   "name": "RESTful",
   "documentation": "https://www.home-assistant.io/integrations/rest",
-  "requirements": [],
+  "requirements": ["xmltodict==0.12.0"],
   "dependencies": [],
   "codeowners": []
 }
diff --git a/homeassistant/components/rest/sensor.py b/homeassistant/components/rest/sensor.py
index 51120cb350c..bdff22d5a3b 100644
--- a/homeassistant/components/rest/sensor.py
+++ b/homeassistant/components/rest/sensor.py
@@ -1,10 +1,13 @@
 """Support for RESTful API sensors."""
+import ast
 import json
 import logging
+from xml.parsers.expat import ExpatError
 
 import requests
 from requests.auth import HTTPBasicAuth, HTTPDigestAuth
 import voluptuous as vol
+import xmltodict
 
 from homeassistant.components.sensor import DEVICE_CLASSES_SCHEMA, PLATFORM_SCHEMA
 from homeassistant.const import (
@@ -38,7 +41,11 @@ DEFAULT_VERIFY_SSL = True
 DEFAULT_FORCE_UPDATE = False
 DEFAULT_TIMEOUT = 10
 
+CONF_CONVERT_XML = "convert_xml"
+DEFAULT_CONVERT_XML = False
+
 CONF_JSON_ATTRS = "json_attributes"
+CONF_JSON_ATTRS_TEMPLATE = "json_attributes_template"
 METHODS = ["POST", "GET"]
 
 PLATFORM_SCHEMA = PLATFORM_SCHEMA.extend(
@@ -50,6 +57,7 @@ PLATFORM_SCHEMA = PLATFORM_SCHEMA.extend(
         ),
         vol.Optional(CONF_HEADERS): vol.Schema({cv.string: cv.string}),
         vol.Optional(CONF_JSON_ATTRS, default=[]): cv.ensure_list_csv,
+        vol.Optional(CONF_CONVERT_XML, default=DEFAULT_CONVERT_XML): cv.boolean,
         vol.Optional(CONF_METHOD, default=DEFAULT_METHOD): vol.In(METHODS),
         vol.Optional(CONF_NAME, default=DEFAULT_NAME): cv.string,
         vol.Optional(CONF_PASSWORD): cv.string,
@@ -57,6 +65,7 @@ PLATFORM_SCHEMA = PLATFORM_SCHEMA.extend(
         vol.Optional(CONF_UNIT_OF_MEASUREMENT): cv.string,
         vol.Optional(CONF_DEVICE_CLASS): DEVICE_CLASSES_SCHEMA,
         vol.Optional(CONF_USERNAME): cv.string,
+        vol.Optional(CONF_JSON_ATTRS_TEMPLATE): cv.template,
         vol.Optional(CONF_VALUE_TEMPLATE): cv.template,
         vol.Optional(CONF_VERIFY_SSL, default=DEFAULT_VERIFY_SSL): cv.boolean,
         vol.Optional(CONF_FORCE_UPDATE, default=DEFAULT_FORCE_UPDATE): cv.boolean,
@@ -84,9 +93,14 @@ def setup_platform(hass, config, add_entities, discovery_info=None):
     device_class = config.get(CONF_DEVICE_CLASS)
     value_template = config.get(CONF_VALUE_TEMPLATE)
     json_attrs = config.get(CONF_JSON_ATTRS)
+    convert_xml = config.get(CONF_CONVERT_XML)
+    json_attrs_template = config.get(CONF_JSON_ATTRS_TEMPLATE)
     force_update = config.get(CONF_FORCE_UPDATE)
     timeout = config.get(CONF_TIMEOUT)
 
+    if json_attrs_template is not None:
+        json_attrs_template.hass = hass
+
     if value_template is not None:
         value_template.hass = hass
 
@@ -120,6 +134,8 @@ def setup_platform(hass, config, add_entities, discovery_info=None):
                 json_attrs,
                 force_update,
                 resource_template,
+                convert_xml,
+                json_attrs_template,
             )
         ],
         True,
@@ -140,6 +156,8 @@ class RestSensor(Entity):
         json_attrs,
         force_update,
         resource_template,
+        convert_xml,
+        json_attrs_template,
     ):
         """Initialize the REST sensor."""
         self._hass = hass
@@ -153,6 +171,8 @@ class RestSensor(Entity):
         self._attributes = None
         self._force_update = force_update
         self._resource_template = resource_template
+        self._convert_xml = convert_xml
+        self._json_attrs_template = json_attrs_template
 
     @property
     def name(self):
@@ -191,12 +211,30 @@ class RestSensor(Entity):
 
         self.rest.update()
         value = self.rest.data
+        json_dict = None
+
+        if self._convert_xml:
+            try:
+                value = json.dumps(xmltodict.parse(value))
+            except ExpatError:
+                _LOGGER.warning(
+                    "REST xml result could not be parsed and converted to JSON."
+                )
+                _LOGGER.debug("Erroneous XML: %s", value)
 
         if self._json_attrs:
             self._attributes = {}
             if value:
                 try:
                     json_dict = json.loads(value)
+                    if self._json_attrs_template is not None:
+                        # render_with_possible_json_value returns single quoted
+                        # strings so we cannot use json.loads to read it back here
+                        json_dict = ast.literal_eval(
+                            self._json_attrs_template.render_with_possible_json_value(
+                                value, None
+                            )
+                        )
                     if isinstance(json_dict, list):
                         json_dict = json_dict[0]
                     if isinstance(json_dict, dict):
diff --git a/requirements_all.txt b/requirements_all.txt
index ac811f0889f..f30de81f153 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -2094,6 +2094,7 @@ xfinity-gateway==0.0.4
 xknx==0.11.2
 
 # homeassistant.components.bluesound
+# homeassistant.components.rest
 # homeassistant.components.startca
 # homeassistant.components.ted5000
 # homeassistant.components.yr
diff --git a/requirements_test_all.txt b/requirements_test_all.txt
index 130f9c4530d..5c6282cf4dc 100644
--- a/requirements_test_all.txt
+++ b/requirements_test_all.txt
@@ -711,6 +711,7 @@ withings-api==2.1.3
 wled==0.2.1
 
 # homeassistant.components.bluesound
+# homeassistant.components.rest
 # homeassistant.components.startca
 # homeassistant.components.ted5000
 # homeassistant.components.yr
diff --git a/tests/components/rest/test_sensor.py b/tests/components/rest/test_sensor.py
index 7e03eb0fd41..d2ce631b4db 100644
--- a/tests/components/rest/test_sensor.py
+++ b/tests/components/rest/test_sensor.py
@@ -166,6 +166,34 @@ class TestRestSensorSetup(unittest.TestCase):
             )
         assert 2 == mock_req.call_count
 
+    @requests_mock.Mocker()
+    def test_setup_get_xml(self, mock_req):
+        """Test setup with valid configuration."""
+        mock_req.get("http://localhost", status_code=200)
+        with assert_setup_component(1, "sensor"):
+            assert setup_component(
+                self.hass,
+                "sensor",
+                {
+                    "sensor": {
+                        "platform": "rest",
+                        "resource": "http://localhost",
+                        "method": "GET",
+                        "value_template": "{{ value_json.key }}",
+                        "name": "foo",
+                        "unit_of_measurement": DATA_MEGABYTES,
+                        "verify_ssl": "true",
+                        "timeout": 30,
+                        "convert_xml": True,
+                        "authentication": "basic",
+                        "username": "my username",
+                        "password": "my password",
+                        "headers": {"Accept": "text/xml"},
+                    }
+                },
+            )
+        assert 2 == mock_req.call_count
+
 
 class TestRestSensor(unittest.TestCase):
     """Tests for REST sensor platform."""
@@ -185,9 +213,12 @@ class TestRestSensor(unittest.TestCase):
         self.unit_of_measurement = DATA_MEGABYTES
         self.device_class = None
         self.value_template = template("{{ value_json.key }}")
+        self.json_attrs_template = template("{{ value_json }}")
         self.value_template.hass = self.hass
+        self.json_attrs_template.hass = self.hass
         self.force_update = False
         self.resource_template = None
+        self.convert_xml = False
 
         self.sensor = rest.RestSensor(
             self.hass,
@@ -199,6 +230,8 @@ class TestRestSensor(unittest.TestCase):
             [],
             self.force_update,
             self.resource_template,
+            self.convert_xml,
+            self.json_attrs_template,
         )
 
     def tearDown(self):
@@ -260,6 +293,8 @@ class TestRestSensor(unittest.TestCase):
             [],
             self.force_update,
             self.resource_template,
+            self.convert_xml,
+            self.json_attrs_template,
         )
         self.sensor.update()
         assert "plain_state" == self.sensor.state
@@ -281,6 +316,8 @@ class TestRestSensor(unittest.TestCase):
             ["key"],
             self.force_update,
             self.resource_template,
+            self.convert_xml,
+            self.json_attrs_template,
         )
         self.sensor.update()
         assert "some_json_value" == self.sensor.device_state_attributes["key"]
@@ -301,6 +338,8 @@ class TestRestSensor(unittest.TestCase):
             ["key"],
             self.force_update,
             self.resource_template,
+            self.convert_xml,
+            self.json_attrs_template,
         )
         self.sensor.update()
         assert "another_value" == self.sensor.device_state_attributes["key"]
@@ -321,6 +360,8 @@ class TestRestSensor(unittest.TestCase):
             ["key"],
             self.force_update,
             self.resource_template,
+            self.convert_xml,
+            self.json_attrs_template,
         )
         self.sensor.update()
         assert {} == self.sensor.device_state_attributes
@@ -343,6 +384,8 @@ class TestRestSensor(unittest.TestCase):
             ["key"],
             self.force_update,
             self.resource_template,
+            self.convert_xml,
+            self.json_attrs_template,
         )
         self.sensor.update()
         assert {} == self.sensor.device_state_attributes
@@ -365,6 +408,8 @@ class TestRestSensor(unittest.TestCase):
             ["key"],
             self.force_update,
             self.resource_template,
+            self.convert_xml,
+            self.json_attrs_template,
         )
         self.sensor.update()
         assert {} == self.sensor.device_state_attributes
@@ -389,6 +434,8 @@ class TestRestSensor(unittest.TestCase):
             ["key"],
             self.force_update,
             self.resource_template,
+            self.convert_xml,
+            self.json_attrs_template,
         )
         self.sensor.update()
 
@@ -397,6 +444,141 @@ class TestRestSensor(unittest.TestCase):
             "json_state_updated_value" == self.sensor.device_state_attributes["key"]
         ), self.force_update
 
+    def test_update_with_json_attrs_with_json_attrs_template(self):
+        """Test attributes get extracted from a JSON result with a template for the attributes."""
+        json_attrs_template = template("{{ value_json.toplevel.second_level }}")
+        json_attrs_template.hass = self.hass
+        value_template = template("{{ value_json.toplevel.master_value }}")
+        value_template.hass = self.hass
+
+        self.rest.update = Mock(
+            "rest.RestData.update",
+            side_effect=self.update_side_effect(
+                '{ "toplevel": {"master_value": "master", "second_level": {"some_json_key": "some_json_value", "some_json_key2": "some_json_value2" } } }'
+            ),
+        )
+        self.sensor = rest.RestSensor(
+            self.hass,
+            self.rest,
+            self.name,
+            self.unit_of_measurement,
+            self.device_class,
+            value_template,
+            ["some_json_key", "some_json_key2"],
+            self.force_update,
+            self.resource_template,
+            self.convert_xml,
+            json_attrs_template,
+        )
+
+        self.sensor.update()
+        assert "some_json_value" == self.sensor.device_state_attributes["some_json_key"]
+        assert (
+            "some_json_value2" == self.sensor.device_state_attributes["some_json_key2"]
+        )
+        assert "master" == self.sensor.state
+
+    def test_update_with_xml_convert_json_attrs_with_json_attrs_template(self):
+        """Test attributes get extracted from a JSON result that was converted from XML with a template for the attributes."""
+        json_attrs_template = template("{{ value_json.toplevel.second_level }}")
+        json_attrs_template.hass = self.hass
+        value_template = template("{{ value_json.toplevel.master_value }}")
+        value_template.hass = self.hass
+        convert_xml = True
+
+        self.rest.update = Mock(
+            "rest.RestData.update",
+            side_effect=self.update_side_effect(
+                "<toplevel><master_value>master</master_value><second_level><some_json_key>some_json_value</some_json_key><some_json_key2>some_json_value2</some_json_key2></second_level></toplevel>"
+            ),
+        )
+        self.sensor = rest.RestSensor(
+            self.hass,
+            self.rest,
+            self.name,
+            self.unit_of_measurement,
+            self.device_class,
+            value_template,
+            ["some_json_key", "some_json_key2"],
+            self.force_update,
+            self.resource_template,
+            convert_xml,
+            json_attrs_template,
+        )
+
+        self.sensor.update()
+        assert "some_json_value" == self.sensor.device_state_attributes["some_json_key"]
+        assert (
+            "some_json_value2" == self.sensor.device_state_attributes["some_json_key2"]
+        )
+        assert "master" == self.sensor.state
+
+    def test_update_with_xml_convert_json_attrs_with_jsonattr_template(self):
+        """Test attributes get extracted from a JSON result that was converted from XML."""
+        json_attrs_template = template("{{ value_json.response }}")
+        json_attrs_template.hass = self.hass
+        value_template = template("{{ value_json.response.bss.wlan }}")
+        value_template.hass = self.hass
+        convert_xml = True
+
+        self.rest.update = Mock(
+            "rest.RestData.update",
+            side_effect=self.update_side_effect(
+                '<?xml version="1.0" encoding="utf-8"?><response><scan>0</scan><ver>12556</ver><count>48</count><ssid>alexander</ssid><bss><valid>0</valid><name>0</name><privacy>0</privacy><wlan>bogus</wlan><strength>0</strength></bss><led0>0</led0><led1>0</led1><led2>0</led2><led3>0</led3><led4>0</led4><led5>0</led5><led6>0</led6><led7>0</led7><btn0>up</btn0><btn1>up</btn1><btn2>up</btn2><btn3>up</btn3><pot0>0</pot0><usr0>0</usr0><temp0>0x0XF0x0XF</temp0><time0> 0</time0></response>'
+            ),
+        )
+        self.sensor = rest.RestSensor(
+            self.hass,
+            self.rest,
+            self.name,
+            self.unit_of_measurement,
+            self.device_class,
+            value_template,
+            ["led0", "led1", "temp0", "time0", "ver"],
+            self.force_update,
+            self.resource_template,
+            convert_xml,
+            json_attrs_template,
+        )
+
+        self.sensor.update()
+        assert "0" == self.sensor.device_state_attributes["led0"]
+        assert "0" == self.sensor.device_state_attributes["led1"]
+        assert "0x0XF0x0XF" == self.sensor.device_state_attributes["temp0"]
+        assert "0" == self.sensor.device_state_attributes["time0"]
+        assert "12556" == self.sensor.device_state_attributes["ver"]
+        assert "bogus" == self.sensor.state
+
+    @patch("homeassistant.components.rest.sensor._LOGGER")
+    def test_update_with_xml_convert_bad_xml(self, mock_logger):
+        """Test attributes get extracted from a XML result with bad xml."""
+        value_template = template("{{ value_json.toplevel.master_value }}")
+        value_template.hass = self.hass
+        convert_xml = True
+
+        self.rest.update = Mock(
+            "rest.RestData.update",
+            side_effect=self.update_side_effect("this is not xml"),
+        )
+        self.sensor = rest.RestSensor(
+            self.hass,
+            self.rest,
+            self.name,
+            self.unit_of_measurement,
+            self.device_class,
+            value_template,
+            ["key"],
+            self.force_update,
+            self.resource_template,
+            convert_xml,
+            self.json_attrs_template,
+        )
+
+        self.sensor.update()
+        assert {} == self.sensor.device_state_attributes
+        assert mock_logger.warning.called
+        assert mock_logger.debug.called
+
 
 class TestRestData(unittest.TestCase):
     """Tests for RestData."""