diff --git a/src/SLCore.UnitTests/Common/Models/FileUriTests.cs b/src/SLCore.UnitTests/Common/Models/FileUriTests.cs
index bde788b15..1c410da28 100644
--- a/src/SLCore.UnitTests/Common/Models/FileUriTests.cs
+++ b/src/SLCore.UnitTests/Common/Models/FileUriTests.cs
@@ -134,6 +134,47 @@ public void LocalPath_ReturnsCorrectPath()
         new FileUri(filePath).LocalPath.Should().Be(filePath);
     }
 
+    [TestMethod]
+    [DataRow("[", "%5B")]
+    [DataRow("]", "%5D")]
+    [DataRow("#", "%2523")]
+    [DataRow("@", "%40")]
+    [DataRow(" ", "%20")]
+    [DataRow("`", "%60")]
+    public void LocalPath_UnescapesEncodesCharacters(string reservedChar, string expectedEncoding)
+    {
+        var expectedFilePath = @$"C:\filewithRfc3986ReservedChar{reservedChar}.cs";
+        var encodedFilePath = @$"file:///C:/filewithRfc3986ReservedChar{expectedEncoding}.cs";
+
+        new FileUri(encodedFilePath).LocalPath.Should().Be(expectedFilePath);
+    }
+
+    [TestMethod]
+    [DataRow("[")]
+    [DataRow("]")]
+    [DataRow("@")]
+    [DataRow(" ")]
+    [DataRow("`")]
+    public void LocalPath_PathDoesNotHaveEncodedChars_ReturnsCorrectLocalPath(string reservedChar)
+    {
+        var notEncodedFilePath = @$"file:///C:/filewithRfc3986ReservedChar{reservedChar}.cs";
+        var expectedFilePath = @$"C:\filewithRfc3986ReservedChar{reservedChar}.cs";
+
+        new FileUri(notEncodedFilePath).LocalPath.Should().Be(expectedFilePath);
+    }
+
+    /// <summary>
+    ///  The # character as the beginning of a fragment, so <see cref="Uri.LocalPath"/> will return the path without the fragment.
+    /// </summary>
+    [TestMethod]
+    public void LocalPath_PathWithHashCharacter_ReturnsLocalPathWithoutHash()
+    {
+        var notEncodedFilePath = @$"file:///C:/filewithRfc3986ReservedChar#.cs";
+        var expectedFilePath = @$"C:\filewithRfc3986ReservedChar";
+
+        new FileUri(notEncodedFilePath).LocalPath.Should().Be(expectedFilePath);
+    }
+
     [TestMethod]
     public void SerializeDeserializeToEqualObject()
     {
diff --git a/src/SLCore/Common/Models/FileUri.cs b/src/SLCore/Common/Models/FileUri.cs
index 775de8ab4..ede896602 100644
--- a/src/SLCore/Common/Models/FileUri.cs
+++ b/src/SLCore/Common/Models/FileUri.cs
@@ -20,8 +20,7 @@
 
 using System.ComponentModel;
 using System.Diagnostics.CodeAnalysis;
-using System.IO;
-using System.Linq;
+using System.Text;
 using SonarLint.VisualStudio.SLCore.Protocol;
 
 namespace SonarLint.VisualStudio.SLCore.Common.Models;
@@ -30,7 +29,7 @@ namespace SonarLint.VisualStudio.SLCore.Common.Models;
 public sealed class FileUri
 {
     private readonly Uri uri;
-    private static readonly char[] Rfc3986ReservedCharsToEncoding = ['?', '#', '[', ']', '@'];
+    private static readonly char[] Rfc3986ReservedCharsToEncode = ['#', '[', ']', '@'];
 
     public FileUri(string uriString)
     {
@@ -56,11 +55,11 @@ public override string ToString()
     /// <returns></returns>
     private static string EscapeRfc3986ReservedCharacters(string stringToEscape)
     {
-        var charsToEscape = Rfc3986ReservedCharsToEncoding.Where(stringToEscape.Contains).ToList();
-
-        return !charsToEscape.Any()
-            ? stringToEscape
-            : charsToEscape.Aggregate(stringToEscape, (current, charToEscape) => current.Replace(charToEscape.ToString(), Uri.HexEscape(charToEscape)));
+        var stringBuilderToEscape = new StringBuilder(stringToEscape);
+        
+        return Rfc3986ReservedCharsToEncode.Aggregate(stringBuilderToEscape,
+                (current, charToEscape) => current.Replace(charToEscape.ToString(), Uri.HexEscape(charToEscape)))
+                .ToString();
     }
 
     [ExcludeFromCodeCoverage]