diff --git a/pkgs/racket-test/tests/xml/pr2440.rkt b/pkgs/racket-test/tests/xml/pr2440.rkt
new file mode 100644
index 0000000000..b81e456076
--- /dev/null
+++ b/pkgs/racket-test/tests/xml/pr2440.rkt
@@ -0,0 +1,23 @@
+#lang racket/base
+(require xml
+         xml/plist)
+
+(module+ test
+  (require rackunit)
+
+  (define example
+    #<<END
+<?xml version="1.0" encoding="UTF-8"?>
+<!DOCTYPE plist SYSTEM "file://localhost/System/Library/DTDs/PropertyList.dtd">
+<plist version="0.9">
+ <dict>
+  <key>Genre</key>
+  <string>Gospel &#38; Religious</string>
+ </dict>
+</plist>
+END
+    )  
+
+  (check-equal?
+   (read-plist (open-input-string example))
+   '(dict (assoc-pair "Genre" "Gospel & Religious"))))
diff --git a/racket/collects/xml/plist.rkt b/racket/collects/xml/plist.rkt
index afc1ff5c6c..a1798a6a24 100644
--- a/racket/collects/xml/plist.rkt
+++ b/racket/collects/xml/plist.rkt
@@ -164,10 +164,20 @@
         (cons `(assoc-pair ,(cadr key) ,(collapse-value value))
               (collapse-assoc-pairs rest)))))
 
+(define (convert-string-value x)
+  (cond [(string? x)
+         x]
+        [(integer? x)
+         (string (integer->char x))]
+        [else
+         (error 'read-plist "Illegal string value: ~e" x)]))
+
 ; collapse-value : xexpr -> value
 (define (collapse-value value)
   (case (car value)
-    [(string) (cadr value)]
+    [(string) (apply string-append
+                     (map convert-string-value
+                          (cdr value)))]
     [(true false) value]
     [(integer real) (list (car value) (string->number (cadr value)))]
     [(dict) (collapse-dict value)]