diff --git a/extensions/markdown/src/documentLinkProvider.ts b/extensions/markdown/src/documentLinkProvider.ts
index bab89479a3d..a8442519adf 100644
--- a/extensions/markdown/src/documentLinkProvider.ts
+++ b/extensions/markdown/src/documentLinkProvider.ts
@@ -8,15 +8,22 @@
 import * as vscode from 'vscode';
 import * as path from 'path';
 
+import { MarkdownEngine } from './markdownEngine';
+import { TableOfContentProvider } from './tableOfContentsProvider';
+
 export default class MarkdownDocumentLinkProvider implements vscode.DocumentLinkProvider {
 
 	private _linkPattern = /(\[[^\]]*\]\(\s*?)(\S+?)(\s+[^\)]*)?\)/g;
 
+	constructor(private engine: MarkdownEngine) { }
+
 	public provideDocumentLinks(document: vscode.TextDocument, token: vscode.CancellationToken): vscode.DocumentLink[] {
 		const results: vscode.DocumentLink[] = [];
 		const base = path.dirname(document.uri.fsPath);
 		const text = document.getText();
 
+		const toc = new TableOfContentProvider(this.engine, document);
+
 		this._linkPattern.lastIndex = 0;
 		let match: RegExpMatchArray | null;
 		while ((match = this._linkPattern.exec(text))) {
@@ -26,20 +33,9 @@ export default class MarkdownDocumentLinkProvider implements vscode.DocumentLink
 			const linkStart = document.positionAt(offset);
 			const linkEnd = document.positionAt(offset + link.length);
 			try {
-				let uri = vscode.Uri.parse(link);
-				if (!uri.scheme) {
-					// assume it must be a file
-					let file;
-					if (uri.path[0] === '/') {
-						file = path.join(vscode.workspace.rootPath, uri.path);
-					} else {
-						file = path.join(base, uri.path);
-					}
-					uri = vscode.Uri.file(file);
-				}
 				results.push(new vscode.DocumentLink(
 					new vscode.Range(linkStart, linkEnd),
-					uri));
+					this.normalizeLink(link, base, toc)));
 			} catch (e) {
 				// noop
 			}
@@ -47,4 +43,27 @@ export default class MarkdownDocumentLinkProvider implements vscode.DocumentLink
 
 		return results;
 	}
-};
+
+	private normalizeLink(link: string, base: string, toc: TableOfContentProvider): vscode.Uri {
+		let uri = vscode.Uri.parse(link);
+		if (!uri.scheme) {
+			if (uri.fragment && !uri.path) {
+				// local link
+				const line = toc.lookup(uri.fragment);
+				if (!isNaN(line)) {
+					return vscode.Uri.parse(`command:revealLine?${encodeURIComponent(JSON.stringify({ lineNumber: line, at: 'top' }))}`);
+				}
+			}
+
+			// assume it must be a file
+			let file;
+			if (uri.path[0] === '/') {
+				file = path.join(vscode.workspace.rootPath, uri.path);
+			} else {
+				file = path.join(base, uri.path);
+			}
+			uri = vscode.Uri.file(file);
+		}
+		return uri;
+	}
+}
diff --git a/extensions/markdown/src/documentSymbolProvider.ts b/extensions/markdown/src/documentSymbolProvider.ts
index 01b69324637..c3af584ba1f 100644
--- a/extensions/markdown/src/documentSymbolProvider.ts
+++ b/extensions/markdown/src/documentSymbolProvider.ts
@@ -8,28 +8,16 @@
 import * as vscode from 'vscode';
 
 import { MarkdownEngine } from './markdownEngine';
+import { TableOfContentProvider } from './tableOfContentsProvider';
 
 export default class MDDocumentSymbolProvider implements vscode.DocumentSymbolProvider {
 
 	constructor(private engine: MarkdownEngine) { }
 
 	provideDocumentSymbols(document: vscode.TextDocument): vscode.ProviderResult<vscode.SymbolInformation[]> {
-		const tokens = this.engine.parse(document.getText());
-		const headings = tokens.filter(token => token.type === 'heading_open');
-
-		return headings.map(heading => {
-			const lineNumber = heading.map[0];
-			const line = document.lineAt(lineNumber);
-			const location = new vscode.Location(document.uri, line.range);
-
-			// # Header        => 'Header'
-			// ## Header ##    => 'Header'
-			// ## Header ####  => 'Header'
-			// Header ##       => 'Header ##'
-			// =========
-			const text = line.text.replace(/^\s*(#)+\s*(.*?)\s*\1*$/, '$2');
-
-			return new vscode.SymbolInformation(text, vscode.SymbolKind.Module, '', location);
+		const toc = new TableOfContentProvider(this.engine, document);
+		return toc.getToc().map(entry => {
+			return new vscode.SymbolInformation(entry.text, vscode.SymbolKind.Module, '', entry.location);
 		});
 	}
 }
\ No newline at end of file
diff --git a/extensions/markdown/src/extension.ts b/extensions/markdown/src/extension.ts
index edd43ca85cb..0d4b54aa999 100644
--- a/extensions/markdown/src/extension.ts
+++ b/extensions/markdown/src/extension.ts
@@ -33,7 +33,7 @@ export function activate(context: vscode.ExtensionContext) {
 	const symbolsProviderRegistration = vscode.languages.registerDocumentSymbolProvider({ language: 'markdown' }, symbolsProvider);
 	context.subscriptions.push(contentProviderRegistration, symbolsProviderRegistration);
 
-	context.subscriptions.push(vscode.languages.registerDocumentLinkProvider('markdown', new DocumentLinkProvider()));
+	context.subscriptions.push(vscode.languages.registerDocumentLinkProvider('markdown', new DocumentLinkProvider(engine)));
 
 	context.subscriptions.push(vscode.commands.registerCommand('markdown.showPreview', showPreview));
 	context.subscriptions.push(vscode.commands.registerCommand('markdown.showPreviewToSide', uri => showPreview(uri, true)));
diff --git a/extensions/markdown/src/tableOfContentsProvider.ts b/extensions/markdown/src/tableOfContentsProvider.ts
new file mode 100644
index 00000000000..d2864ba66df
--- /dev/null
+++ b/extensions/markdown/src/tableOfContentsProvider.ts
@@ -0,0 +1,77 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+'use strict';
+
+import * as vscode from 'vscode';
+
+import { MarkdownEngine, IToken } from './markdownEngine';
+
+export interface TocEntry {
+	slug: string;
+	text: string;
+	line: number;
+	location: vscode.Location;
+}
+
+export class TableOfContentProvider {
+	private toc: TocEntry[];
+
+	public constructor(
+		private engine: MarkdownEngine,
+		private document: vscode.TextDocument) { }
+
+	public getToc(): TocEntry[] {
+		if (!this.toc) {
+			try {
+				this.toc = this.buildToc(this.document);
+			} catch (e) {
+				this.toc = [];
+			}
+		}
+		return this.toc;
+	}
+
+	public lookup(fragment: string): number {
+		const slug = TableOfContentProvider.slugify(fragment);
+		for (const entry of this.getToc()) {
+			if (entry.slug === slug) {
+				return entry.line;
+			}
+		}
+		return NaN;
+	}
+
+	private buildToc(document: vscode.TextDocument): any {
+		const toc: TocEntry[] = [];
+		const tokens: IToken[] = this.engine.parse(this.document.getText());
+
+		for (const heading of tokens.filter(token => token.type === 'heading_open')) {
+			const lineNumber = heading.map[0];
+			const line = document.lineAt(lineNumber);
+			const href = TableOfContentProvider.slugify(line.text);
+			if (href) {
+				toc.push({
+					slug: href,
+					text: TableOfContentProvider.getHeaderText(line.text),
+					line: lineNumber,
+					location: new vscode.Location(document.uri, line.range)
+				});
+			}
+		}
+		return toc;
+	}
+
+	private static getHeaderText(header: string): string {
+		return header.replace(/^\s*(#)+\s*(.*?)\s*\1*$/, '$2').trim();
+	}
+
+	public static slugify(header: string): string {
+		return encodeURI(TableOfContentProvider.getHeaderText(header)
+			.toLowerCase()
+			.replace(/\s/g, '-'));
+	}
+}
+