diff --git a/src/fs.ts b/src/fs.ts
index 924900488..ad00f2e4c 100644
--- a/src/fs.ts
+++ b/src/fs.ts
@@ -78,7 +78,7 @@ export class LocalFileSystem implements FileSystem {
                 follow: true,
             })
             globber.on('match', (file: string) => {
-                subscriber.next(normalizeUri(base + file))
+                subscriber.next(file)
             })
             globber.on('error', (err: any) => {
                 subscriber.error(err)
@@ -89,6 +89,12 @@ export class LocalFileSystem implements FileSystem {
             return () => {
                 globber.abort()
             }
+        }).map(file => {
+            const encodedPath = file
+                .split('/')
+                .map(encodeURIComponent)
+                .join('/')
+            return normalizeUri(base + encodedPath)
         })
     }
 
diff --git a/src/test/memfs.test.ts b/src/test/memfs.test.ts
index c5ed629bb..4e64881a0 100644
--- a/src/test/memfs.test.ts
+++ b/src/test/memfs.test.ts
@@ -18,6 +18,14 @@ describe('memfs.ts', () => {
                 sinon.assert.calledOnce(listener)
                 sinon.assert.calledWithExactly(listener, 'file:///foo/bar.txt', undefined)
             })
+            it('should add just a URI and emit an event when URI has encoded char', () => {
+                const listener = sinon.spy()
+                const fs = new InMemoryFileSystem('/')
+                fs.on('add', listener)
+                fs.add('file:///foo/%25bar.txt')
+                sinon.assert.calledOnce(listener)
+                sinon.assert.calledWithExactly(listener, 'file:///foo/%25bar.txt', undefined)
+            })
             it('should add content for a URI and emit an event', () => {
                 const listener = sinon.spy()
                 const fs = new InMemoryFileSystem('/')