diff --git a/package/libs/mbedtls/Makefile b/package/libs/mbedtls/Makefile
index caa2405ce9..80ec17b4e2 100644
--- a/package/libs/mbedtls/Makefile
+++ b/package/libs/mbedtls/Makefile
@@ -8,13 +8,13 @@
 include $(TOPDIR)/rules.mk
 
 PKG_NAME:=mbedtls
-PKG_VERSION:=2.7.2
-PKG_RELEASE:=2
+PKG_VERSION:=2.7.3
+PKG_RELEASE:=1
 PKG_USE_MIPS16:=0
 
 PKG_SOURCE:=$(PKG_NAME)-$(PKG_VERSION)-gpl.tgz
 PKG_SOURCE_URL:=https://tls.mbed.org/download/
-PKG_HASH:=638a21d6a148bdb55d86e6de313d3e6aef1326a0f9d541aa6ac31617f2f96d91
+PKG_HASH:=f1cd52824d1d5b4205c4255501764c5a02a77f029193683b3063bef584e97947
 
 PKG_BUILD_PARALLEL:=1
 PKG_LICENSE:=GPL-2.0+
diff --git a/package/libs/mbedtls/patches/300-soversion-compatibility.patch b/package/libs/mbedtls/patches/300-soversion-compatibility.patch
index 4d33be2686..320482c7cd 100644
--- a/package/libs/mbedtls/patches/300-soversion-compatibility.patch
+++ b/package/libs/mbedtls/patches/300-soversion-compatibility.patch
@@ -8,8 +8,8 @@ the new library with binaries compiled against the old library.
  
  if(USE_SHARED_MBEDTLS_LIBRARY)
      add_library(mbedcrypto SHARED ${src_crypto})
--    set_target_properties(mbedcrypto PROPERTIES VERSION 2.7.2 SOVERSION 2)
-+    set_target_properties(mbedcrypto PROPERTIES VERSION 2.7.2 SOVERSION 0)
+-    set_target_properties(mbedcrypto PROPERTIES VERSION 2.7.3 SOVERSION 2)
++    set_target_properties(mbedcrypto PROPERTIES VERSION 2.7.3 SOVERSION 0)
      target_link_libraries(mbedcrypto ${libs})
  
      add_library(mbedx509 SHARED ${src_x509})
@@ -22,5 +22,5 @@ the new library with binaries compiled against the old library.
 -SOEXT_CRYPTO=so.2
 +SOEXT_CRYPTO=so.0
  
- DLEXT=so
- # OSX shared library extension:
+ # Set DLEXT=dylib to compile as a shared library for Mac OS X
+ DLEXT ?= so