diff --git a/CHANGELOG.md b/CHANGELOG.md
index 129d5370c..775b5df11 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -12,6 +12,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Fixed
 - Prevented browser performance instrumentation from breaking code views when `performance.measure()` returns no value. [#1665](https://github.com/sourcebot-dev/sourcebot/pull/1665)
+- Decoded percent-encoded characters in repo names derived from direct generic git URLs. [#1666](https://github.com/sourcebot-dev/sourcebot/pull/1666)
 
 ## [5.1.13] - 2026-09-12
 
diff --git a/packages/backend/src/repoCompileUtils.test.ts b/packages/backend/src/repoCompileUtils.test.ts
index df0d90f82..76c0d273b 100644
--- a/packages/backend/src/repoCompileUtils.test.ts
+++ b/packages/backend/src/repoCompileUtils.test.ts
@@ -334,4 +334,24 @@ describe('compileGenericGitHostConfig_url', () => {
         const metadata = result[0].metadata as { gitConfig?: Record<string, string> };
         expect(metadata.gitConfig!['zoekt.name']).toBe('github.com/test/repo');
     });
+
+    test('should decode percent-encoded characters in the repo name', async () => {
+        mockedIsUrlAValidGitRepo.mockResolvedValue(true);
+
+        const config = {
+            type: 'git' as const,
+            url: 'https://github.com/test/Project%20Name%20With%20Spaces.git',
+        };
+
+        const result = await compileGenericGitHostConfig_url(config, 1);
+
+        expect(result).toHaveLength(1);
+        // The repo name should have decoded spaces, not %20
+        expect(result[0].name).toBe('github.com/test/Project Name With Spaces');
+        expect(result[0].displayName).toBe('github.com/test/Project Name With Spaces');
+
+        const metadata = result[0].metadata as { gitConfig?: Record<string, string> };
+        expect(metadata.gitConfig!['zoekt.name']).toBe('github.com/test/Project Name With Spaces');
+        expect(metadata.gitConfig!['zoekt.display-name']).toBe('github.com/test/Project Name With Spaces');
+    });
 });
diff --git a/packages/backend/src/repoCompileUtils.ts b/packages/backend/src/repoCompileUtils.ts
index cdc78d8e0..24483c974 100644
--- a/packages/backend/src/repoCompileUtils.ts
+++ b/packages/backend/src/repoCompileUtils.ts
@@ -725,7 +725,28 @@ export const compileGenericGitHostConfig_url = async (
 
     // @note: matches the naming here:
     // https://github.com/sourcebot-dev/zoekt/blob/main/gitindex/index.go#L293
-    const repoName = path.join(remoteUrl.host, remoteUrl.pathname.replace(/\.git$/, ''));
+    // Decode URL-encoded characters (e.g., %20 -> space) to ensure consistent repo names
+    let decodedPathname: string;
+    try {
+        decodedPathname = decodeURIComponent(remoteUrl.pathname);
+    } catch (e) {
+        if (e instanceof URIError) {
+            const warning = `Skipping ${remoteUrl.toString()} - malformed URL encoding.`;
+            logger.warn(warning);
+            reportRepositoryDiscoveryIssue({
+                code: "INVALID_REPOSITORY_SOURCE",
+                effect: "TARGET_SKIPPED",
+                subject: {
+                    kind: "url",
+                    value: remoteUrl.toString(),
+                },
+                message: warning,
+            });
+            return [];
+        }
+        throw e;
+    }
+    const repoName = path.join(remoteUrl.host, decodedPathname.replace(/\.git$/, ''));
 
     const repo: RepoData = {
         external_codeHostType: 'genericGitHost',