Hendry has won two matches for the first time in four ranking events
Gloucester qualifier Robert Milkins hit back from 4-0 down to beat world number 34 Michael Holt 5-4 and progress to the Bahrain Championship quarter-finals.
Milkins will play former world champion Stephen Hendry in the last eight after the Scot beat Barry Pinches 5-1.
Stephen Maguire enjoyed an easy 5-0 win over Joe Perry to set up a clash with Australia's Neil Robertson.
Elsewhere, Mark Allen beat Michael Judge 5-2 and will next play Barry Hawkins who overcame Mike Dunn 5-4.
The performance of the day belonged to Milkins who said he would have preferred to have been drawn against world number one Ronnie O'Sullivan, had he not withdrawn from the event last week for health reasons, than Holt.
"That is the first time in my career that I have ever been 4-0 down and won 5-4," said world number 51 Milkins.
I have disrespected the game for a few years but now I am playing really well
"Michael has always been a bit of a bogey player for me. I would rather play Ronnie, but I have had some outrageous luck and maybe this is the turning point in my career.
"I have disrespected the game for a few years but now I am playing really well."
On Thursday, Milkins faces seven-time world champion Hendry, who has now won two matches in a row for the first time in four ranking events.
"I have now got a bit of confidence behind me," said Hendry.
"The belief that the technical side of my game is right helps. Confidence only comes from wins and playing well."
Tournament favourite Maguire rattled in breaks of 39, 41, 50, 87, 36, 42 and 79 to whitewash Perry.
The 27-year-old Scot, who was below par in his opening round win against Mark Davis on Tuesday, said: "I would still have to play better than that to win this tournament with the players that are left in it.
"But I was just a totally different player. When I played my first match I couldn't make 20 but when I got in I just felt as if I was going to pot everything that was there."