diff --git a/doc-src/content/CHANGELOG.markdown b/doc-src/content/CHANGELOG.markdown
index 24e7c9cc..d4c5dafc 100644
--- a/doc-src/content/CHANGELOG.markdown
+++ b/doc-src/content/CHANGELOG.markdown
@@ -20,6 +20,10 @@ The Documentation for the [latest preview release](http://beta.compass-style.org
 ### Stylesheet Changes
 
 * Improved hide-text mixin for better performance and accessibility.
+  If you use `em` units on margins for elements that have hidden text,
+  you should use the `move-text-out-of-view` mixin instead or set
+  `$default-hide-text-method` to `move` to keep using the old method of
+  hiding text.
 
 
 0.12.rc.0 (UNRELEASED)
diff --git a/frameworks/compass/stylesheets/compass/typography/text/_replacement.scss b/frameworks/compass/stylesheets/compass/typography/text/_replacement.scss
index 0d184eb2..bcce661b 100644
--- a/frameworks/compass/stylesheets/compass/typography/text/_replacement.scss
+++ b/frameworks/compass/stylesheets/compass/typography/text/_replacement.scss
@@ -1,3 +1,11 @@
+// Controls how text is hidden, can be one of:
+//
+// * squish - This method is more performant and robust but will cause issues if you
+//            use `em` units for margins on elements where the text is hidden.
+// * move - The compass legacy method. Preferred if you use
+//          margins with `em` units on elements where text-hiding occurs.
+$default-hide-text-method: squish;
+
 // Hides html text and replaces it with an image.
 // If you use this on an inline element, you will need to change the display to block or inline-block.
 // Also, if the size of the image differs significantly from the font size, you'll need to set the width and/or height.
@@ -7,8 +15,8 @@
 // * `img` -- the relative path from the project image directory to the image.
 // * `x` -- the x position of the background image.
 // * `y` -- the y position of the background image.
-@mixin replace-text($img, $x: 50%, $y: 50%) {
-  @include hide-text;
+@mixin replace-text($img, $x: 50%, $y: 50%, $hide-method: $default-hide-text-method) {
+  @include hide-text($hide-method);
   background: {
     image: image-url($img);
     repeat: no-repeat;
@@ -18,15 +26,58 @@
 
 // Like the `replace-text` mixin, but also sets the width
 // and height of the element according the dimensions of the image.
-@mixin replace-text-with-dimensions($img, $x: 50%, $y: 50%) {
-  @include replace-text($img, $x, $y);
+@mixin replace-text-with-dimensions($img, $x: 50%, $y: 50%, $hide-method: $default-hide-text-method) {
+  @include replace-text($img, $x, $y, $hide-method);
   width: image-width($img);
   height: image-height($img);
 }
 
 // Hides text in an element so you can see the background.
-@mixin hide-text {
+// This mixin selects the `squish-text` mixin when the
+// `$default-hide-text-method` is set to `squish` and 
+// selects the `move-text-out-of-view` mixin when set to `move`.
+@mixin hide-text($method: $default-hide-text-method) {
+  @if $method == squish {
+    @include squish-text;
+  } @else if $method == move {
+    @include move-text-out-of-view;
+  } @else {
+    @warn "Unkown method: #{$default-hide-text-method}. Using move instead.";
+    @include move-text-out-of-view;
+  }
+}
+
+// Hides text visually by squishing into nothingness and making it transparent
+// in those browsers where it can't be squished. Almost all screen readers will
+// still read the hidden text.
+//
+// This works on both block and inline elements and will hide child elements as long
+// as they do not override `font`, `text-shadow`, or `color` with a higher specificity.
+//
+// This method may cause problems if you are using `em`-based margins. See
+// [this blog post](http://nicolasgallagher.com/another-css-image-replacement-technique/)
+// for more information.
+//
+// When `$default-hide-text-method` is set to `squish`, the `hide-text` mixin
+// will default to this method.
+@mixin squish-text {
   font: 0/0 serif;
   text-shadow: none;
   color: transparent;
 }
+
+// Hides text visually by moving it off the screen and hiding the scrollbars.
+// Screen readers will still read the hidden text.
+//
+// This method will not work inline elements and may cause performance
+// issues when used with css animations.
+//
+// When `$default-hide-text-method` is set to `move`, the `hide-text` mixin
+// will default to this method.
+@mixin move-text-out-of-view {
+  $approximate_em_value: 12px / 1em;
+  $wider_than_any_screen: -9999em;
+  text-indent: $wider_than_any_screen * $approximate_em_value;
+  overflow: hidden;
+  text-align: left;
+}
diff --git a/test/fixtures/stylesheets/compass/css/replacement.css b/test/fixtures/stylesheets/compass/css/replacement.css
new file mode 100644
index 00000000..de66702c
--- /dev/null
+++ b/test/fixtures/stylesheets/compass/css/replacement.css
@@ -0,0 +1,19 @@
+.squished-by-default {
+  font: 0/0 serif;
+  text-shadow: none;
+  color: transparent; }
+
+.moved-by-default {
+  text-indent: -119988px;
+  overflow: hidden;
+  text-align: left; }
+
+.squished {
+  font: 0/0 serif;
+  text-shadow: none;
+  color: transparent; }
+
+.moved {
+  text-indent: -119988px;
+  overflow: hidden;
+  text-align: left; }
diff --git a/test/fixtures/stylesheets/compass/sass/replacement.scss b/test/fixtures/stylesheets/compass/sass/replacement.scss
new file mode 100644
index 00000000..abc59f54
--- /dev/null
+++ b/test/fixtures/stylesheets/compass/sass/replacement.scss
@@ -0,0 +1,15 @@
+@import "compass/typography/text/replacement";
+
+.squished-by-default {
+  @include hide-text;
+}
+$default-hide-text-method: move;
+.moved-by-default {
+  @include hide-text;
+}
+.squished {
+  @include squish-text;
+}
+.moved {
+  @include move-text-out-of-view;
+}