diff --git a/lib/hls/hls_parser.js b/lib/hls/hls_parser.js
index 9953513b37..0180762dab 100644
--- a/lib/hls/hls_parser.js
+++ b/lib/hls/hls_parser.js
@@ -732,7 +732,8 @@ shaka.hls.HlsParser = class {
     // Create variants for each variant tag.
     const variantsPromises = tags.map(async (tag) => {
       const frameRate = tag.getAttributeValue('FRAME-RATE');
-      const bandwidth = Number(tag.getRequiredAttrValue('BANDWIDTH'));
+      const bandwidth = Number(tag.getAttributeValue('AVERAGE-BANDWIDTH')) ||
+        Number(tag.getRequiredAttrValue('BANDWIDTH'));
 
       const resolution = tag.getAttributeValue('RESOLUTION');
       const [width, height] = resolution ? resolution.split('x') : [null, null];
diff --git a/test/hls/hls_parser_unit.js b/test/hls/hls_parser_unit.js
index 1bed59417b..a693134891 100644
--- a/test/hls/hls_parser_unit.js
+++ b/test/hls/hls_parser_unit.js
@@ -209,6 +209,46 @@ describe('HlsParser', () => {
     expect(actual).toEqual(manifest);
   });
 
+  it('prioritize AVERAGE-BANDWIDTH to BANDWIDTH', async () => {
+    const master = [
+      '#EXTM3U\n',
+      '#EXT-X-STREAM-INF:BANDWIDTH=200,CODECS="avc1",',
+      'RESOLUTION=960x540,FRAME-RATE=60,',
+      'AVERAGE-BANDWIDTH=100\n',
+      'video\n',
+    ].join('');
+
+    const media = [
+      '#EXTM3U\n',
+      '#EXT-X-PLAYLIST-TYPE:VOD\n',
+      '#EXT-X-MAP:URI="init.mp4",BYTERANGE="616@0"\n',
+      '#EXTINF:5,\n',
+      '#EXT-X-BYTERANGE:121090@616\n',
+      'main.mp4',
+    ].join('');
+
+    const manifest = shaka.test.ManifestGenerator.generate((manifest) => {
+      manifest.anyTimeline();
+      manifest.addPartialVariant((variant) => {
+        variant.bandwidth = 100;
+        variant.addPartialStream(ContentType.VIDEO, (stream) => {
+          stream.frameRate = 60;
+          stream.mime('video/mp4', 'avc1');
+          stream.size(960, 540);
+        });
+      });
+    });
+
+    fakeNetEngine
+        .setResponseText('test:/master', master)
+        .setResponseText('test:/video', media)
+        .setResponseValue('test:/init.mp4', initSegmentData)
+        .setResponseValue('test:/main.mp4', segmentData);
+
+    const actual = await parser.start('test:/master', playerInterface);
+    expect(actual).toEqual(manifest);
+  });
+
   it('ignores duplicate CODECS', async () => {
     const master = [
       '#EXTM3U\n',