diff --git a/src/vs/editor/contrib/snippet/snippet.md b/src/vs/editor/contrib/snippet/snippet.md
index 403cda7743839..6b29d44c16e0c 100644
--- a/src/vs/editor/contrib/snippet/snippet.md
+++ b/src/vs/editor/contrib/snippet/snippet.md
@@ -53,6 +53,26 @@ ${TM_FILENAME/(.*)\..+$/$1/}
   |-> resolves to the filename
 ```
 
+Placeholder-Transform
+--
+
+Like a Variable-Transform, a transformation of a placeholder allows changing the inserted text for the placeholder when moving to the next tab stop.
+The inserted text is matched with the regular expression and the match or matches - depending on the options - are replaced with the specified replacement format text.
+Every occurrence of a placeholder can define its own transformation independently using the value of the first placeholder.
+The format for Placeholder-Transforms is the same as for Variable-Transforms.
+
+The following sample removes an underscore at the beginning of the text. `_transform` becomes `transform`.
+
+```
+${1/^_(.*)/$1/}
+  |   |    |  |-> No options
+  |   |    |
+  |   |    |-> Replace it with the first capture group
+  |   |
+  |   |-> Regular expression to capture everything after the underscore
+  |
+  |-> Placeholder Index
+```
 
 Grammar
 --
@@ -61,12 +81,17 @@ Below is the EBNF for snippets. With `\` (backslash) you can escape `$`, `}` and
 
 ```
 any         ::= tabstop | placeholder | choice | variable | text
-tabstop     ::= '$' int | '${' int '}'
+tabstop     ::= '$' int
+                | '${' int '}'
+                | '${' int  transform '}'
 placeholder ::= '${' int ':' any '}'
+                | '${' int ':' any transform '}'
 choice      ::= '${' int '|' text (',' text)* '|}'
+                | '${' int '|' text (',' text)* '|' transform '}'
 variable    ::= '$' var | '${' var }'
                 | '${' var ':' any '}'
-                | '${' var '/' regex '/' (format | text)+ '/' options '}'
+                | '${' var transform '}'
+transform   ::= '/' regex '/' (format | text)+ '/' options
 format      ::= '$' int | '${' int '}'
                 | '${' int ':' '/upcase' | '/downcase' | '/capitalize' '}'
                 | '${' int ':+' if '}'
@@ -78,3 +103,5 @@ var         ::= [_a-zA-Z] [_a-zA-Z0-9]*
 int         ::= [0-9]+
 text        ::= .*
 ```
+
+Transformations for placeholders and choices are an extension to the TextMate snippet grammar and only support by Visual Studio Code.
\ No newline at end of file
diff --git a/src/vs/editor/contrib/snippet/snippetParser.ts b/src/vs/editor/contrib/snippet/snippetParser.ts
index 2ee46939849ad..7ab0d57eafeeb 100644
--- a/src/vs/editor/contrib/snippet/snippetParser.ts
+++ b/src/vs/editor/contrib/snippet/snippetParser.ts
@@ -214,8 +214,11 @@ export class Text extends Marker {
 	}
 }
 
-export class Placeholder extends Marker {
+export abstract class TransformableMarker extends Marker {
+	public transform: Transform;
+}
 
+export class Placeholder extends TransformableMarker {
 	static compareByIndex(a: Placeholder, b: Placeholder): number {
 		if (a.index === b.index) {
 			return 0;
@@ -247,17 +250,26 @@ export class Placeholder extends Marker {
 	}
 
 	toTextmateString(): string {
-		if (this.children.length === 0) {
+		let transformString = '';
+		if (this.transform) {
+			transformString = this.transform.toTextmateString();
+		}
+		if (this.children.length === 0 && !this.transform) {
 			return `\$${this.index}`;
+		} else if (this.children.length === 0) {
+			return `\${${this.index}${transformString}}`;
 		} else if (this.choice) {
-			return `\${${this.index}|${this.choice.toTextmateString()}|}`;
+			return `\${${this.index}|${this.choice.toTextmateString()}|${transformString}}`;
 		} else {
-			return `\${${this.index}:${this.children.map(child => child.toTextmateString()).join('')}}`;
+			return `\${${this.index}:${this.children.map(child => child.toTextmateString()).join('')}${transformString}}`;
 		}
 	}
 
 	clone(): Placeholder {
 		let ret = new Placeholder(this.index);
+		if (this.transform) {
+			ret.transform = this.transform.clone();
+		}
 		ret._children = this.children.map(child => child.clone());
 		return ret;
 	}
@@ -384,7 +396,7 @@ export class FormatString extends Marker {
 	}
 }
 
-export class Variable extends Marker {
+export class Variable extends TransformableMarker {
 
 	constructor(public name: string) {
 		super();
@@ -392,9 +404,8 @@ export class Variable extends Marker {
 
 	resolve(resolver: VariableResolver): boolean {
 		let value = resolver.resolve(this);
-		let [firstChild] = this._children;
-		if (firstChild instanceof Transform && this._children.length === 1) {
-			value = firstChild.resolve(value || '');
+		if (this.transform) {
+			value = this.transform.resolve(value || '');
 		}
 		if (value !== undefined) {
 			this._children = [new Text(value)];
@@ -404,15 +415,22 @@ export class Variable extends Marker {
 	}
 
 	toTextmateString(): string {
+		let transformString = '';
+		if (this.transform) {
+			transformString = this.transform.toTextmateString();
+		}
 		if (this.children.length === 0) {
-			return `\${${this.name}}`;
+			return `\${${this.name}${transformString}}`;
 		} else {
-			return `\${${this.name}:${this.children.map(child => child.toTextmateString()).join('')}}`;
+			return `\${${this.name}:${this.children.map(child => child.toTextmateString()).join('')}${transformString}}`;
 		}
 	}
 
 	clone(): Variable {
 		const ret = new Variable(this.name);
+		if (this.transform) {
+			ret.transform = this.transform.clone();
+		}
 		ret._children = this.children.map(child => child.clone());
 		return ret;
 	}
@@ -580,6 +598,7 @@ export class SnippetParser {
 		for (const placeholder of incompletePlaceholders) {
 			if (placeholderDefaultValues.has(placeholder.index)) {
 				const clone = new Placeholder(placeholder.index);
+				clone.transform = placeholder.transform;
 				for (const child of placeholderDefaultValues.get(placeholder.index)) {
 					clone.appendChild(child.clone());
 				}
@@ -696,6 +715,17 @@ export class SnippetParser {
 					return true;
 				}
 
+				//../<regex>/<format>/<options>} -> transform
+				if (this._accept(TokenType.Forwardslash)) {
+					if (this._parseTransform(placeholder)) {
+						parent.appendChild(placeholder);
+						return true;
+					}
+
+					this._backTo(token);
+					return false;
+				}
+
 				if (this._parse(placeholder)) {
 					continue;
 				}
@@ -717,11 +747,20 @@ export class SnippetParser {
 						continue;
 					}
 
-					if (this._accept(TokenType.Pipe) && this._accept(TokenType.CurlyClose)) {
-						// ..|} -> done
+					if (this._accept(TokenType.Pipe)) {
 						placeholder.appendChild(choice);
-						parent.appendChild(placeholder);
-						return true;
+						if (this._accept(TokenType.CurlyClose)) {
+							// ..|} -> done
+							parent.appendChild(placeholder);
+							return true;
+						}
+						if (this._accept(TokenType.Forwardslash)) {
+							// ...|/<regex>/<format>/<options>} -> transform
+							if (this._parseTransform(placeholder)) {
+								parent.appendChild(placeholder);
+								return true;
+							}
+						}
 					}
 				}
 
@@ -729,6 +768,16 @@ export class SnippetParser {
 				return false;
 			}
 
+		} else if (this._accept(TokenType.Forwardslash)) {
+			// ${1/<regex>/<format>/<options>}
+			if (this._parseTransform(placeholder)) {
+				parent.appendChild(placeholder);
+				return true;
+			}
+
+			this._backTo(token);
+			return false;
+
 		} else if (this._accept(TokenType.CurlyClose)) {
 			// ${1}
 			parent.appendChild(placeholder);
@@ -829,7 +878,7 @@ export class SnippetParser {
 		}
 	}
 
-	private _parseTransform(parent: Variable): boolean {
+	private _parseTransform(parent: TransformableMarker): boolean {
 		// ...<regex>/<format>/<options>}
 
 		let transform = new Transform();
@@ -894,7 +943,7 @@ export class SnippetParser {
 			return false;
 		}
 
-		parent.appendChild(transform);
+		parent.transform = transform;
 		return true;
 	}
 
diff --git a/src/vs/editor/contrib/snippet/snippetSession.ts b/src/vs/editor/contrib/snippet/snippetSession.ts
index 31be6b2ba1662..9d9f336c9290e 100644
--- a/src/vs/editor/contrib/snippet/snippetSession.ts
+++ b/src/vs/editor/contrib/snippet/snippetSession.ts
@@ -87,6 +87,23 @@ export class OneSnippet {
 
 		this._initDecorations();
 
+		// Transform placeholder text if necessary
+		if (this._placeholderGroupsIdx >= 0) {
+			let operations: IIdentifiedSingleEditOperation[] = [];
+
+			for (const placeholder of this._placeholderGroups[this._placeholderGroupsIdx]) {
+				// Check if the placeholder has a transformation
+				if (placeholder.transform) {
+					const id = this._placeholderDecorations.get(placeholder);
+					const range = this._editor.getModel().getDecorationRange(id);
+					const currentValue = this._editor.getModel().getValueInRange(range);
+
+					operations.push({ range: range, text: placeholder.transform.resolve(currentValue) });
+				}
+			}
+			this._editor.getModel().applyEdits(operations);
+		}
+
 		if (fwd === true && this._placeholderGroupsIdx < this._placeholderGroups.length - 1) {
 			this._placeholderGroupsIdx += 1;
 
diff --git a/src/vs/editor/contrib/snippet/test/snippetParser.test.ts b/src/vs/editor/contrib/snippet/test/snippetParser.test.ts
index 20d5d3c96af12..5cae847a72615 100644
--- a/src/vs/editor/contrib/snippet/test/snippetParser.test.ts
+++ b/src/vs/editor/contrib/snippet/test/snippetParser.test.ts
@@ -240,6 +240,35 @@ suite('SnippetParser', () => {
 
 	});
 
+	test('Parser, placeholder transforms', function () {
+		assertTextAndMarker('${1///}', '', Placeholder);
+		assertTextAndMarker('${1/regex/format/gmi}', '', Placeholder);
+		assertTextAndMarker('${1/([A-Z][a-z])/format/}', '', Placeholder);
+
+		// tricky regex
+		assertTextAndMarker('${1/m\\/atch/$1/i}', '', Placeholder);
+		assertMarker('${1/regex\/format/options}', Text);
+
+		// incomplete
+		assertTextAndMarker('${1///', '${1///', Text);
+		assertTextAndMarker('${1/regex/format/options', '${1/regex/format/options', Text);
+	});
+
+	test('Parser, placeholder with defaults and transformation', () => {
+		assertTextAndMarker('${1:value/foo/bar/}', 'value', Placeholder);
+		assertTextAndMarker('${1:bar${2:foo}bar/foo/bar/}', 'barfoobar', Placeholder);
+
+		// incomplete
+		assertTextAndMarker('${1:bar${2:foobar}/foo/bar/', '${1:barfoobar/foo/bar/', Text, Placeholder, Text);
+	});
+
+	test('Parser, placeholder with choice and transformation', () => {
+		assertTextAndMarker('${1|one,two,three|/foo/bar/}', 'one', Placeholder);
+		assertTextAndMarker('${1|one|/foo/bar/}', 'one', Placeholder);
+		assertTextAndMarker('${1|one,two,three,|/foo/bar/}', '${1|one,two,three,|/foo/bar/}', Text);
+		assertTextAndMarker('${1|one,/foo/bar/', '${1|one,/foo/bar/', Text);
+	});
+
 	test('No way to escape forward slash in snippet regex #36715', function () {
 		assertMarker('${TM_DIRECTORY/src\\//$1/}', Variable);
 	});
@@ -378,6 +407,36 @@ suite('SnippetParser', () => {
 		assert.ok(marker[0] instanceof Variable);
 	});
 
+	test('Parser, transform example', () => {
+		let marker = new SnippetParser().parse('${1:name} : ${2:type}${3: :=/\\s:=(.*)/${1:+ :=}${1}/};\n$0');
+		let childs = marker.children;
+
+		assert.ok(childs[0] instanceof Placeholder);
+		assert.equal(childs[0].children.length, 1);
+		assert.equal(childs[0].children[0].toString(), 'name');
+		assert.equal((<Placeholder>childs[0]).transform, undefined);
+		assert.ok(childs[1] instanceof Text);
+		assert.equal(childs[1].toString(), ' : ');
+		assert.ok(childs[2] instanceof Placeholder);
+		assert.equal(childs[2].children.length, 1);
+		assert.equal(childs[2].children[0].toString(), 'type');
+		assert.ok(childs[3] instanceof Placeholder);
+		assert.equal(childs[3].children.length, 1);
+		assert.equal(childs[3].children[0].toString(), ' :=');
+		assert.notEqual((<Placeholder>childs[3]).transform, undefined);
+		let t = (<Placeholder>childs[3]).transform;
+		assert.equal(t.regexp, '/\\s:=(.*)/');
+		assert.equal(t.children.length, 2);
+		assert.ok(t.children[0] instanceof FormatString);
+		assert.equal((<FormatString>t.children[0]).index, 1);
+		assert.equal((<FormatString>t.children[0]).ifValue, ' :=');
+		assert.ok(t.children[1] instanceof FormatString);
+		assert.equal((<FormatString>t.children[1]).index, 1);
+		assert.ok(childs[4] instanceof Text);
+		assert.equal(childs[4].toString(), ';\n');
+
+	});
+
 	test('Parser, default placeholder values', () => {
 
 		assertMarker('errorContext: `${1:err}`, error: $1', Text, Placeholder, Text, Placeholder);
@@ -393,6 +452,37 @@ suite('SnippetParser', () => {
 		assert.equal((<Text>(<Placeholder>p2).children[0]), 'err');
 	});
 
+	test('Parser, default placeholder values and one transform', () => {
+
+		assertMarker('errorContext: `${1:err/err/ok/}`, error: $1', Text, Placeholder, Text, Placeholder);
+
+		const [, p1, , p2] = new SnippetParser().parse('errorContext: `${1:err/err/ok/}`, error:$1').children;
+
+		assert.equal((<Placeholder>p1).index, '1');
+		assert.equal((<Placeholder>p1).children.length, '1');
+		assert.equal((<Text>(<Placeholder>p1).children[0]), 'err');
+		assert.notEqual((<Placeholder>p1).transform, undefined);
+
+		assert.equal((<Placeholder>p2).index, '1');
+		assert.equal((<Placeholder>p2).children.length, '1');
+		assert.equal((<Text>(<Placeholder>p2).children[0]), 'err');
+		assert.equal((<Placeholder>p2).transform, undefined);
+
+		assertMarker('errorContext: `${1:err}`, error: ${1/err/ok/}', Text, Placeholder, Text, Placeholder);
+
+		const [, p3, , p4] = new SnippetParser().parse('errorContext: `${1:err}`, error:${1/err/ok/}').children;
+
+		assert.equal((<Placeholder>p3).index, '1');
+		assert.equal((<Placeholder>p3).children.length, '1');
+		assert.equal((<Text>(<Placeholder>p3).children[0]), 'err');
+		assert.equal((<Placeholder>p3).transform, undefined);
+
+		assert.equal((<Placeholder>p4).index, '1');
+		assert.equal((<Placeholder>p4).children.length, '1');
+		assert.equal((<Text>(<Placeholder>p4).children[0]), 'err');
+		assert.notEqual((<Placeholder>p4).transform, undefined);
+	});
+
 	test('Repeated snippet placeholder should always inherit, #31040', function () {
 		assertText('${1:foo}-abc-$1', 'foo-abc-foo');
 		assertText('${1:foo}-abc-${1}', 'foo-abc-foo');
diff --git a/src/vs/editor/contrib/snippet/test/snippetSession.test.ts b/src/vs/editor/contrib/snippet/test/snippetSession.test.ts
index 6c9ea6728db92..8093aa82221b0 100644
--- a/src/vs/editor/contrib/snippet/test/snippetSession.test.ts
+++ b/src/vs/editor/contrib/snippet/test/snippetSession.test.ts
@@ -434,6 +434,121 @@ suite('SnippetSession', function () {
 		assertSelections(editor, new Selection(1, 6, 1, 25));
 	});
 
+	test('snippets, transform', function () {
+		editor.getModel().setValue('');
+		editor.setSelection(new Selection(1, 1, 1, 1));
+		const session = new SnippetSession(editor, '${1/foo/bar/}$0');
+		session.insert();
+		assertSelections(editor, new Selection(1, 1, 1, 1));
+
+		editor.trigger('test', 'type', { text: 'foo' });
+		session.next();
+
+		assert.equal(model.getValue(), 'bar');
+		assert.equal(session.isAtLastPlaceholder, true);
+		assertSelections(editor, new Selection(1, 4, 1, 4));
+	});
+
+	test('snippets, multi placeholder same index one transform', function () {
+		editor.getModel().setValue('');
+		editor.setSelection(new Selection(1, 1, 1, 1));
+		const session = new SnippetSession(editor, '$1 baz ${1/foo/bar/}$0');
+		session.insert();
+		assertSelections(editor, new Selection(1, 1, 1, 1), new Selection(1, 6, 1, 6));
+
+		editor.trigger('test', 'type', { text: 'foo' });
+		session.next();
+
+		assert.equal(model.getValue(), 'foo baz bar');
+		assert.equal(session.isAtLastPlaceholder, true);
+		assertSelections(editor, new Selection(1, 12, 1, 12));
+	});
+
+	test('snippets, transform example', function () {
+		editor.getModel().setValue('');
+		editor.setSelection(new Selection(1, 1, 1, 1));
+		const session = new SnippetSession(editor, '${1:name} : ${2:type}${3: :=/\\s:=(.*)/${1:+ :=}${1}/};\n$0');
+		session.insert();
+
+		assertSelections(editor, new Selection(1, 1, 1, 5));
+		editor.trigger('test', 'type', { text: 'clk' });
+		session.next();
+
+		assertSelections(editor, new Selection(1, 7, 1, 11));
+		editor.trigger('test', 'type', { text: 'std_logic' });
+		session.next();
+
+		assertSelections(editor, new Selection(1, 16, 1, 19));
+		session.next();
+
+		assert.equal(model.getValue(), 'clk : std_logic;\n');
+		assert.equal(session.isAtLastPlaceholder, true);
+		assertSelections(editor, new Selection(2, 1, 2, 1));
+	});
+
+	test('snippets, transform with indent', function () {
+		const snippet = [
+			'private readonly ${1} = new Emitter<$2>();',
+			'readonly ${1/^_(.*)/$1/}: Event<$2> = this.$1.event;',
+			'$0'
+		].join('\n');
+		const expected = [
+			'{',
+			'\tprivate readonly _prop = new Emitter<string>();',
+			'\treadonly prop: Event<string> = this._prop.event;',
+			'\t',
+			'}'
+		].join('\n');
+		const base = [
+			'{',
+			'\t',
+			'}'
+		].join('\n');
+
+		editor.getModel().setValue(base);
+		editor.getModel().updateOptions({ insertSpaces: false });
+		editor.setSelection(new Selection(2, 2, 2, 2));
+
+		const session = new SnippetSession(editor, snippet);
+		session.insert();
+
+		assertSelections(editor, new Selection(2, 19, 2, 19), new Selection(3, 11, 3, 11), new Selection(3, 28, 3, 28));
+		editor.trigger('test', 'type', { text: '_prop' });
+		session.next();
+
+		assertSelections(editor, new Selection(2, 39, 2, 39), new Selection(3, 23, 3, 23));
+		editor.trigger('test', 'type', { text: 'string' });
+		session.next();
+
+		assert.equal(model.getValue(), expected);
+		assert.equal(session.isAtLastPlaceholder, true);
+		assertSelections(editor, new Selection(4, 2, 4, 2));
+
+	});
+
+	test('snippets, transform example hit if', function () {
+		editor.getModel().setValue('');
+		editor.setSelection(new Selection(1, 1, 1, 1));
+		const session = new SnippetSession(editor, '${1:name} : ${2:type}${3: :=/\\s:=(.*)/${1:+ :=}${1}/};\n$0');
+		session.insert();
+
+		assertSelections(editor, new Selection(1, 1, 1, 5));
+		editor.trigger('test', 'type', { text: 'clk' });
+		session.next();
+
+		assertSelections(editor, new Selection(1, 7, 1, 11));
+		editor.trigger('test', 'type', { text: 'std_logic' });
+		session.next();
+
+		assertSelections(editor, new Selection(1, 16, 1, 19));
+		editor.trigger('test', 'type', { text: ' := \'1\'' });
+		session.next();
+
+		assert.equal(model.getValue(), 'clk : std_logic := \'1\';\n');
+		assert.equal(session.isAtLastPlaceholder, true);
+		assertSelections(editor, new Selection(2, 1, 2, 1));
+	});
+
 	test('Snippet placeholder index incorrect after using 2+ snippets in a row that each end with a placeholder, #30769', function () {
 		editor.getModel().setValue('');
 		editor.setSelection(new Selection(1, 1, 1, 1));