diff --git a/NEWS b/NEWS
index 25ec4b80c80..18c93b5627e 100644
--- a/NEWS
+++ b/NEWS
@@ -46,6 +46,8 @@ PHP                                                                        NEWS
 
 - XML:
   . Move away from to-be-deprecated libxml fields. (nielsdos)
+  . Fixed bug GH-14834 (Error installing PHP when --with-pear is used).
+    (nielsdos)
 
 20 Jun 2024, PHP 8.3.9
 
diff --git a/ext/xml/compat.c b/ext/xml/compat.c
index 242cc4ba7c4..5f55dc62b36 100644
--- a/ext/xml/compat.c
+++ b/ext/xml/compat.c
@@ -375,7 +375,7 @@ _get_entity(void *user, const xmlChar *name)
 		if (ret == NULL)
 			ret = xmlGetDocEntity(parser->parser->myDoc, name);
 
-		if (ret == NULL || (parser->parser->instate != XML_PARSER_ENTITY_VALUE && parser->parser->instate != XML_PARSER_ATTRIBUTE_VALUE)) {
+		if (ret == NULL || parser->parser->instate == XML_PARSER_CONTENT) {
 			if (ret == NULL || ret->etype == XML_INTERNAL_GENERAL_ENTITY || ret->etype == XML_INTERNAL_PARAMETER_ENTITY || ret->etype == XML_INTERNAL_PREDEFINED_ENTITY) {
 				/* Predefined entities will expand unless no cdata handler is present */
 				if (parser->h_default && ! (ret && ret->etype == XML_INTERNAL_PREDEFINED_ENTITY && parser->h_cdata)) {
diff --git a/ext/xml/tests/gh14834.phpt b/ext/xml/tests/gh14834.phpt
new file mode 100644
index 00000000000..2781ba2ed09
--- /dev/null
+++ b/ext/xml/tests/gh14834.phpt
@@ -0,0 +1,29 @@
+--TEST--
+GH-14834 (Error installing PHP when --with-pear is used)
+--EXTENSIONS--
+xml
+--FILE--
+<?php
+$xml = <<<XML
+<?xml version="1.0" encoding="UTF-8"?>
+<!DOCTYPE root [
+    <!ENTITY foo "ent">
+]>
+<root>
+  <element hint="hello&apos;world">&foo;<![CDATA[ &amp; ]]><?x &amp; ?></element>
+</root>
+XML;
+
+$parser = xml_parser_create();
+xml_set_character_data_handler($parser, function($_, $data) {
+    var_dump($data);
+});
+xml_parse($parser, $xml, true);
+?>
+--EXPECT--
+string(3) "
+  "
+string(3) "ent"
+string(7) " &amp; "
+string(1) "
+"