What potential issues can arise when using HTML named entities in PHP variables?

Using HTML named entities in PHP variables can lead to issues with rendering special characters correctly, as PHP does not automatically decode these entities. To solve this problem, you can use the `html_entity_decode()` function in PHP to convert HTML named entities back to their corresponding characters before using the variables in your code.

$variable_with_entities = "<Hello, world!>";
$decoded_variable = html_entity_decode($variable_with_entities);
echo $decoded_variable;