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Roger Federer was pushed to three sets before beating Philipp Kohlschreiber 6-4, 4-6, 6-4 in the Swiss Indoors second round on Thursday.
The match swung on a single break of serve in each set, and top-seeded Federer took two of only three break-point chances he had.
Federer broke for a 5-4 lead in the deciding set when the 32nd-ranked German sent a crosscourt forehand wide.
On his first match point, Federer clinched with a deft volley winner at the net.
Federer, seeking a seventh title at his hometown event, will play David Goffin of Belgium in Friday's quarterfinals.
Donald Young beat fourth-seeded Kevin Anderson of South Africa 6-2, 7-6 (6) to set up an all-American quarterfinal in Federer's half of the draw.
Young next faces Jack Sock, who beat another compatriot, sixth-seeded John Isner, 7-6 (5), 6-3.
Croatia also had a good day with Marin Cilic and Ivo Karlovic advancing to the last eight.
Seventh-seeded Cilic will face Rafael Nadal next after beating Teymuraz Gabashvili of Russia, 6-3, 6-1.
Karlovic typically dominated with his serve and fired 25 aces in a 7-6 (4), 7-5 win over Dusan Lajovic of Serbia.
On Friday, Karlovic plays Richard Gasquet , the fifth-seeded Frenchman who beat Dominic Thiem of Austria, 7-6 (1), 6-4.
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