diff --git a/pyls/workspace.py b/pyls/workspace.py
index 3837b037..87473991 100644
--- a/pyls/workspace.py
+++ b/pyls/workspace.py
@@ -4,7 +4,7 @@
 import os
 import re
 import sys
-from urllib.parse import urlparse, urlunparse
+from urllib.parse import urlparse, urlunparse, unquote
 
 import jedi
 
@@ -24,7 +24,7 @@ class Workspace(object):
     M_SHOW_MESSAGE = 'window/showMessage'
 
     def __init__(self, root, lang_server=None):
-        self._url_parsed = urlparse(root)
+        self._url_parsed = urlparse(unquote(root))
         self.root = self._url_parsed.path
         self._docs = {}
         self._lang_server = lang_server
@@ -36,7 +36,7 @@ def get_document(self, doc_uri):
         return self._docs[doc_uri]
 
     def put_document(self, doc_uri, content, version=None):
-        path = urlparse(doc_uri).path
+        path = unquote(urlparse(doc_uri).path)
         self._docs[doc_uri] = Document(
             doc_uri, content, sys_path=self.syspath_for_path(path), version=version
         )
@@ -80,7 +80,7 @@ class Document(object):
     def __init__(self, uri, source=None, version=None, local=True, sys_path=None):
         self.uri = uri
         self.version = version
-        self.path = urlparse(uri).path
+        self.path = unquote(urlparse(uri).path)
         self.filename = os.path.basename(self.path)
 
         self._local = local
diff --git a/test/test_workspace.py b/test/test_workspace.py
index f30afa72..f2ad3065 100644
--- a/test/test_workspace.py
+++ b/test/test_workspace.py
@@ -51,3 +51,13 @@ def test_non_root_project(pyls):
     pyls.workspace.put_document(test_uri, 'assert True')
     test_doc = pyls.workspace.get_document(test_uri)
     assert project_root in pyls.workspace.syspath_for_path(test_doc.path)
+
+
+def test_urlencoded_paths():
+    root_uri = "file:///Encoded%20Space/"
+    file_uri = root_uri + "test.py"
+    ws = workspace.Workspace(root_uri)
+    assert ws.root == "/Encoded Space/"
+    ws.put_document(file_uri, "")
+    doc = ws.get_document(file_uri)
+    assert doc.path == '/Encoded Space/test.py'