diff --git a/src/DocNet/Config.cs b/src/DocNet/Config.cs
index be71b36..f67046f 100644
--- a/src/DocNet/Config.cs
+++ b/src/DocNet/Config.cs
@@ -307,6 +307,25 @@ namespace Docnet
 	        }
         }
 
+	    public UrlFormatting UrlFormatting
+	    {
+	        get
+	        {
+	            var urlFormatting = UrlFormatting.None;
+
+	            var urlFormattingAsString = (string)_configData.UrlFormatting;
+	            if (!string.IsNullOrWhiteSpace(urlFormattingAsString))
+	            {
+	                if (!Enum.TryParse(urlFormattingAsString, true, out urlFormatting))
+	                {
+	                    urlFormatting = UrlFormatting.None;
+	                }
+	            }
+
+	            return urlFormatting;
+            }
+	    }
+
 		public NavigationLevel Pages
 		{
 			get
diff --git a/src/DocNet/Docnet.csproj b/src/DocNet/Docnet.csproj
index b2d7f24..b47e767 100644
--- a/src/DocNet/Docnet.csproj
+++ b/src/DocNet/Docnet.csproj
@@ -68,6 +68,8 @@
     <Compile Include="SearchIndexEntry.cs" />
     <Compile Include="SimpleNavigationElement.cs" />
     <Compile Include="INavigationElementExtensions.cs" />
+    <Compile Include="StringExtensions.cs" />
+    <Compile Include="UrlFormatting.cs" />
     <Compile Include="Utils.cs" />
   </ItemGroup>
   <ItemGroup>
diff --git a/src/DocNet/Engine.cs b/src/DocNet/Engine.cs
index 6cffe93..1dff26a 100644
--- a/src/DocNet/Engine.cs
+++ b/src/DocNet/Engine.cs
@@ -45,12 +45,8 @@ namespace Docnet
 				return 1;
 			}
 
-			var navigationContext = new NavigationContext
-			{
-				MaxLevel = _loadedConfig.MaxLevelInToC,
-				PathSpecification = _loadedConfig.PathSpecification,
-				StripIndexHtm = _loadedConfig.StripIndexHtm
-			};
+			var navigationContext = new NavigationContext(_loadedConfig.PathSpecification, _loadedConfig.UrlFormatting,
+				_loadedConfig.MaxLevelInToC, _loadedConfig.StripIndexHtm);
 
 			GeneratePages(navigationContext);
 			return 0;
@@ -79,7 +75,8 @@ namespace Docnet
 				return null;
 			}
 
-			var navigationContext = new NavigationContext(config.PathSpecification, config.MaxLevelInToC, config.StripIndexHtm);
+			var navigationContext = new NavigationContext(config.PathSpecification, config.UrlFormatting, 
+                config.MaxLevelInToC, config.StripIndexHtm);
 
 			var indexElement = config.Pages.GetIndexElement(navigationContext);
 			if(indexElement == null)
diff --git a/src/DocNet/NavigationContext.cs b/src/DocNet/NavigationContext.cs
index b2e4dfb..33c891f 100644
--- a/src/DocNet/NavigationContext.cs
+++ b/src/DocNet/NavigationContext.cs
@@ -7,17 +7,20 @@
 			MaxLevel = 2;
 		}
 
-		public NavigationContext(PathSpecification pathSpecification, int maxLevel, bool stripIndexHtm)
+		public NavigationContext(PathSpecification pathSpecification, UrlFormatting urlFormatting, int maxLevel, bool stripIndexHtm)
 			: this()
 		{
 			PathSpecification = pathSpecification;
-			MaxLevel = maxLevel;
+		    UrlFormatting = urlFormatting;
+            MaxLevel = maxLevel;
 			StripIndexHtm = stripIndexHtm;
 		}
 
 		public PathSpecification PathSpecification { get; set; }
 
-		public int MaxLevel { get; set; }
+        public UrlFormatting UrlFormatting { get; set; }
+
+        public int MaxLevel { get; set; }
 
 		public bool StripIndexHtm { get; set; }
 	}
diff --git a/src/DocNet/NavigationLevel.cs b/src/DocNet/NavigationLevel.cs
index 9b30cff..73f2021 100644
--- a/src/DocNet/NavigationLevel.cs
+++ b/src/DocNet/NavigationLevel.cs
@@ -305,7 +305,20 @@ namespace Docnet
 					}
 				}
 
-				var nameToUse = this.Name.Replace(".", "").Replace('/', '_').Replace("\\", "_").Replace(":", "").Replace(" ", "");
+				var nameToUse = string.Empty;
+
+				switch (navigationContext.UrlFormatting)
+				{
+					case UrlFormatting.None:
+						// Backwards compatibility mode
+						nameToUse = this.Name.Replace(".", "").Replace('/', '_').Replace("\\", "_").Replace(":", "").Replace(" ", "");
+						break;
+
+					default:
+						nameToUse = this.Name.ApplyUrlFormatting(navigationContext.UrlFormatting);
+						break;
+				}
+
 				if (string.IsNullOrWhiteSpace(nameToUse))
 				{
 					return null;
diff --git a/src/DocNet/SimpleNavigationElement.cs b/src/DocNet/SimpleNavigationElement.cs
index 55ad6df..e8722db 100644
--- a/src/DocNet/SimpleNavigationElement.cs
+++ b/src/DocNet/SimpleNavigationElement.cs
@@ -226,14 +226,18 @@ namespace Docnet
 		{
 			if (_targetURLForHTML == null)
 			{
-				_targetURLForHTML = (this.Value ?? string.Empty);
-
-				var toReplace = ".md";
+				var toReplace = "mdext";
 				var replacement = ".htm";
 
+				var value = (this.Value ?? string.Empty);
+
+				// Replace with custom extension because url formatting might optimize the extension
+				value = value.Replace(".md", toReplace);
+				_targetURLForHTML = value.ApplyUrlFormatting(navigationContext.UrlFormatting);
+
 				if (navigationContext.PathSpecification == PathSpecification.RelativeAsFolder)
 				{
-					if (!IsIndexElement && !_targetURLForHTML.EndsWith("index.md", StringComparison.InvariantCultureIgnoreCase))
+					if (!IsIndexElement && !_targetURLForHTML.EndsWith($"index{toReplace}", StringComparison.InvariantCultureIgnoreCase))
 					{
 						replacement = "/index.htm";
 					}
diff --git a/src/DocNet/StringExtensions.cs b/src/DocNet/StringExtensions.cs
new file mode 100644
index 0000000..ebf2c41
--- /dev/null
+++ b/src/DocNet/StringExtensions.cs
@@ -0,0 +1,61 @@
+using System;
+using System.Text.RegularExpressions;
+
+namespace Docnet
+{
+	internal static class StringExtensions
+	{
+		public static string ApplyUrlFormatting(this string value, UrlFormatting urlFormatting)
+		{
+			var finalValue = string.Empty;
+			string replacementValue = null;
+
+			switch (urlFormatting)
+			{
+				case UrlFormatting.None:
+					finalValue = value;
+					break;
+
+				case UrlFormatting.Strip:
+					replacementValue = string.Empty;
+					break;
+
+				case UrlFormatting.Dashes:
+					replacementValue = "-";
+					break;
+
+				default:
+					throw new ArgumentOutOfRangeException(nameof(urlFormatting), urlFormatting, null);
+			}
+
+			var splitted = value.Split(new[] { "/", "\\" }, StringSplitOptions.RemoveEmptyEntries);
+
+			if (replacementValue != null)
+			{
+				var doubleReplacementValue = replacementValue + replacementValue;
+				var regEx = new Regex("[^a-zA-Z0-9 -]");
+
+				for (var i = 0; i < splitted.Length; i++)
+				{
+					var splittedValue = splitted[i];
+
+					splittedValue = regEx.Replace(splittedValue, replacementValue).Replace(" ", replacementValue);
+
+					if (!string.IsNullOrEmpty(replacementValue))
+					{
+						while (splittedValue.Contains(doubleReplacementValue))
+						{
+							splittedValue = splittedValue.Replace(doubleReplacementValue, replacementValue);
+						}
+					}
+
+					splitted[i] = splittedValue.ToLower();
+				}
+
+				finalValue = string.Join("/", splitted);
+			}
+
+			return finalValue;
+		}
+	}
+}
\ No newline at end of file
diff --git a/src/DocNet/UrlFormatting.cs b/src/DocNet/UrlFormatting.cs
new file mode 100644
index 0000000..7937bb1
--- /dev/null
+++ b/src/DocNet/UrlFormatting.cs
@@ -0,0 +1,11 @@
+namespace Docnet
+{
+    public enum UrlFormatting
+    {
+		None,
+
+        Strip,
+
+        Dashes
+    }
+}
\ No newline at end of file