diff --git a/src/com/googlecode/utterlyidle/UriTemplate.java b/src/com/googlecode/utterlyidle/UriTemplate.java
index ddfd9829..8b7bed17 100644
--- a/src/com/googlecode/utterlyidle/UriTemplate.java
+++ b/src/com/googlecode/utterlyidle/UriTemplate.java
@@ -10,6 +10,7 @@
 import java.util.List;
 import java.util.regex.MatchResult;
 import java.util.regex.Pattern;
+import java.util.stream.Collectors;
 
 import static com.googlecode.totallylazy.regex.Regex.regex;
 import static com.googlecode.utterlyidle.PathParameters.pathParameters;
@@ -44,7 +45,10 @@ public boolean matches(final String uri) {
     }
 
     public PathParameters extract(String uri) {
-        List<String> values = groupValues(templateRegex.findMatches(UrlEncodedMessage.decode(trimSlashes(uri))).head());
+        List<String> values = groupValues(templateRegex.findMatches(trimSlashes(uri)).head())
+                .stream()
+                .map(UrlEncodedMessage::decode)
+                .collect(Collectors.toList());
         return pathParameters(names.zip(values));
     }
 
diff --git a/test/com/googlecode/utterlyidle/UriTemplateTest.java b/test/com/googlecode/utterlyidle/UriTemplateTest.java
index 82f6f55b..23998a1c 100644
--- a/test/com/googlecode/utterlyidle/UriTemplateTest.java
+++ b/test/com/googlecode/utterlyidle/UriTemplateTest.java
@@ -134,6 +134,14 @@ public void canExtractFromUriWithEncodedSpace() {
         assertThat(template.extract("path/foo+bar").getValue("id1"), is("foo bar"));
     }
 
+    @Test
+    public void canExtractFromUriWithEncodedSlash() {
+        UriTemplate template = uriTemplate("path/{id1}");
+        PathParameters pathParameters = template.extract("path/foo%2Fbar");
+        String id1 = pathParameters.getValue("id1");
+        assertThat(id1, is("foo/bar"));
+    }
+
     @Test
     public void canGenerateUri() {
         UriTemplate template = uriTemplate("path/{id}");