diff --git a/src/Microsoft.ComponentDetection.Orchestrator/Services/GraphTranslation/DefaultGraphTranslationService.cs b/src/Microsoft.ComponentDetection.Orchestrator/Services/GraphTranslation/DefaultGraphTranslationService.cs
index 179c9303d..e00f1b578 100644
--- a/src/Microsoft.ComponentDetection.Orchestrator/Services/GraphTranslation/DefaultGraphTranslationService.cs
+++ b/src/Microsoft.ComponentDetection.Orchestrator/Services/GraphTranslation/DefaultGraphTranslationService.cs
@@ -296,6 +296,7 @@ private HashSet<string> MakeFilePathsRelative(ILogger logger, DirectoryInfo root
                 relativePath = "/" + relativePath;
             }
 
+            relativePath = Uri.UnescapeDataString(relativePath);
             relativePathSet.Add(relativePath);
         }
 
diff --git a/test/Microsoft.ComponentDetection.Orchestrator.Tests/Services/DefaultGraphTranslationServiceTests.cs b/test/Microsoft.ComponentDetection.Orchestrator.Tests/Services/DefaultGraphTranslationServiceTests.cs
index fee4229c7..b2716196c 100644
--- a/test/Microsoft.ComponentDetection.Orchestrator.Tests/Services/DefaultGraphTranslationServiceTests.cs
+++ b/test/Microsoft.ComponentDetection.Orchestrator.Tests/Services/DefaultGraphTranslationServiceTests.cs
@@ -40,6 +40,41 @@ public DefaultGraphTranslationServiceTests()
         this.sourceDirectory.Create();
     }
 
+    [TestMethod]
+    public void UnescapeComponentLocations()
+    {
+        // Arrange
+        var projectPath = "/my project/my project.csproj";
+
+        var singleFileComponentRecorder = this.componentRecorder.CreateSingleFileComponentRecorder(Path.Join(this.sourceDirectory.FullName, projectPath));
+        var processingResult = new DetectorProcessingResult
+        {
+            ResultCode = ProcessingResultCode.Success,
+            ContainersDetailsMap = new Dictionary<int, ContainerDetails>
+            {
+                {
+                    this.sampleContainerDetails.Id, this.sampleContainerDetails
+                },
+            },
+            ComponentRecorders = [(this.componentDetectorMock.Object, this.componentRecorder)],
+        };
+
+        var detectedComponent = new DetectedComponent(new NuGetComponent("nugetComponent", "4.5.6"));
+        singleFileComponentRecorder.RegisterUsage(detectedComponent);
+
+        var settings = new ScanSettings { SourceDirectory = this.sourceDirectory };
+
+        // Act
+        var result = this.serviceUnderTest.GenerateScanResultFromProcessingResult(processingResult, settings);
+
+        // Assert
+        result.Should().NotBeNull();
+        result.ComponentsFound.Should().ContainSingle();
+
+        var resultComponent = result.ComponentsFound.Single();
+        resultComponent.LocationsFoundAt.Should().BeEquivalentTo([projectPath]);
+    }
+
     [TestMethod]
     public void GenerateScanResultFromResult_WithCustomLocations()
     {