diff --git a/benchmarks/performance/unescape.bench.ts b/benchmarks/performance/unescape.bench.ts
index 55d3b55a0..17a4ddcea 100644
--- a/benchmarks/performance/unescape.bench.ts
+++ b/benchmarks/performance/unescape.bench.ts
@@ -1,8 +1,10 @@
 import { bench, describe } from 'vitest';
 import { unescape as unescapeToolkit_ } from 'es-toolkit';
+import { unescape as unescapeCompatToolkit_ } from 'es-toolkit/compat';
 import { unescape as unescapeLodash_ } from 'lodash';
 
 const unescapeToolkit = unescapeToolkit_;
+const unescapeCompatToolkit = unescapeCompatToolkit_;
 const unescapeLodash = unescapeLodash_;
 
 const longString = 'fred, barney, & pebbles'.repeat(50);
@@ -12,6 +14,10 @@ describe('unescape', () => {
     unescapeToolkit('fred, barney, & pebbles');
   });
 
+  bench('es-toolkit/compat/unescape', () => {
+    unescapeCompatToolkit('fred, barney, & pebbles');
+  });
+
   bench('lodash/unescape', () => {
     unescapeLodash('fred, barney, & pebbles');
   });
@@ -22,6 +28,10 @@ describe('unescape/long', () => {
     unescapeToolkit(longString);
   });
 
+  bench('es-toolkit/compat/unescape - long string', () => {
+    unescapeCompatToolkit(longString);
+  });
+
   bench('lodash/unescape long string', () => {
     unescapeLodash(longString);
   });
diff --git a/src/compat/index.ts b/src/compat/index.ts
index 7537cd837..62ad8c21e 100644
--- a/src/compat/index.ts
+++ b/src/compat/index.ts
@@ -183,6 +183,7 @@ export { toUpper } from './string/toUpper.ts';
 export { trim } from './string/trim.ts';
 export { trimEnd } from './string/trimEnd.ts';
 export { trimStart } from './string/trimStart.ts';
+export { unescape } from './string/unescape.ts';
 export { upperCase } from './string/upperCase.ts';
 export { upperFirst } from './string/upperFirst.ts';
 export { words } from './string/words.ts';
diff --git a/src/compat/string/unescape.spec.ts b/src/compat/string/unescape.spec.ts
new file mode 100644
index 000000000..95c95defd
--- /dev/null
+++ b/src/compat/string/unescape.spec.ts
@@ -0,0 +1,51 @@
+import { describe, expect, it } from 'vitest';
+import { escape } from './escape';
+import { unescape } from './unescape';
+import { map } from '../array/map';
+import { stubString } from '../util/stubString';
+
+describe('unescape', () => {
+  let escaped = '&<>"'/';
+  let unescaped = '&<>"\'/';
+
+  escaped += escaped;
+  unescaped += unescaped;
+
+  it('should unescape entities in order', () => {
+    expect(unescape('&amp;lt;')).toBe('&lt;');
+  });
+
+  it('should unescape the proper entities', () => {
+    expect(unescape(escaped)).toBe(unescaped);
+  });
+
+  it('should handle strings with nothing to unescape', () => {
+    expect(unescape('abc')).toBe('abc');
+  });
+
+  it('should unescape the same characters escaped by `_.escape`', () => {
+    expect(unescape(escape(unescaped))).toBe(unescaped);
+  });
+
+  it('should handle leading zeros in html entities', () => {
+    expect(unescape('&#39;')).toBe("'");
+    expect(unescape('&#039;')).toBe("'");
+    expect(unescape('&#000039;')).toBe("'");
+  });
+
+  ['&#96;', '&#x2F;'].forEach(entity => {
+    it(`should not unescape the "${entity}" entity`, () => {
+      expect(unescape(entity)).toBe(entity);
+    });
+  });
+
+  it('should return an empty string for empty values', () => {
+    // eslint-disable-next-line no-sparse-arrays
+    const values = [, null, undefined, ''];
+    const expected = map(values, stubString);
+
+    const actual = map(values, (value, index) => (index ? unescape(value as any) : unescape()));
+
+    expect(actual).toEqual(expected);
+  });
+});
diff --git a/src/compat/string/unescape.ts b/src/compat/string/unescape.ts
new file mode 100644
index 000000000..be7c68430
--- /dev/null
+++ b/src/compat/string/unescape.ts
@@ -0,0 +1,19 @@
+import { unescape as unescapeToolkit } from '../../string/unescape.ts';
+import { toString } from '../util/toString.ts';
+
+/**
+ * Converts the HTML entities `&amp;`, `&lt;`, `&gt;`, `&quot;`, and `&#39;` in `str` to their corresponding characters.
+ * It is the inverse of `escape`.
+ *
+ * @param {string} str The string to unescape.
+ * @returns {string} Returns the unescaped string.
+ *
+ * @example
+ * unescape('This is a &lt;div&gt; element.'); // returns 'This is a <div> element.'
+ * unescape('This is a &quot;quote&quot;'); // returns 'This is a "quote"'
+ * unescape('This is a &#39;quote&#39;'); // returns 'This is a 'quote''
+ * unescape('This is a &amp; symbol'); // returns 'This is a & symbol'
+ */
+export function unescape(str?: string): string {
+  return unescapeToolkit(toString(str));
+}