diff --git a/changelog.md b/changelog.md
--- a/changelog.md
+++ b/changelog.md
@@ -1,3 +1,6 @@
+0.1.8
+* Fix bug where uri-encoded paths would not decode when parsed.
+
 0.1.7
 * Add bytestring serialization functions. This is a common use case
   and exporting these prevents the user from directly depending on
diff --git a/src/URI/ByteString/Internal.hs b/src/URI/ByteString/Internal.hs
--- a/src/URI/ByteString/Internal.hs
+++ b/src/URI/ByteString/Internal.hs
@@ -378,7 +378,7 @@
 -- | Parses the path section of a url. Note that while this can take
 -- percent-encoded characters, it does not itself decode them while parsing.
 pathParser' :: (Parser ByteString -> Parser [ByteString]) -> URIParser ByteString
-pathParser' repeatParser = (mconcat <$> repeatParser segmentParser) `orFailWith` MalformedPath
+pathParser' repeatParser = (urlDecodeQuery . mconcat <$> repeatParser segmentParser) `orFailWith` MalformedPath
   where
     segmentParser = mconcat <$> sequence [string "/", A.takeWhile (inClass pchar)]
 
diff --git a/test/URI/ByteStringTests.hs b/test/URI/ByteStringTests.hs
--- a/test/URI/ByteStringTests.hs
+++ b/test/URI/ByteStringTests.hs
@@ -102,7 +102,12 @@
           ""
           (Query [])
           (Just "only-fragment")
-
+  ,  testParses "https://www.example.org/weird%20path" $
+       URI (Scheme "https")
+           (Just (Authority Nothing (Host "www.example.org") Nothing))
+           "/weird path"
+           (Query [])
+           Nothing
 
   , parseTestURI strictURIParserOptions "http://www.example.org/." $
       Right $ URI
@@ -310,4 +315,12 @@
                  (Just "somefragment")
        let res = BB.toLazyByteString (serializeURI uri)
        res @?= "http://user:pass@www.example.org/?foo=bar#somefragment"
+  , testCase "encodes decoded paths" $ do
+       let uri = URI (Scheme "http")
+                 (Just (Authority Nothing (Host "www.example.org") Nothing))
+                 "/weird path"
+                 (Query [])
+                 Nothing
+       let res = BB.toLazyByteString (serializeURI uri)
+       res @?= "http://www.example.org/weird%20path"
   ]
diff --git a/uri-bytestring.cabal b/uri-bytestring.cabal
--- a/uri-bytestring.cabal
+++ b/uri-bytestring.cabal
@@ -1,5 +1,5 @@
 name:                uri-bytestring
-version:             0.1.7
+version:             0.1.8
 synopsis:            Haskell URI parsing as ByteStrings
 description: uri-bytestring aims to be an RFC3986 compliant URI parser that uses efficient ByteStrings for parsing and representing the URI data.
 license:             BSD3
@@ -13,6 +13,9 @@
 cabal-version:       >=1.16
 homepage:            https://github.com/Soostone/uri-bytestring
 bug-reports:         https://github.com/Soostone/uri-bytestring/issues
+Tested-With:         GHC == 7.6.3
+                   , GHC == 7.8.4
+                   , GHC == 7.10.1
 extra-source-files:
   README.md
   CONTRIBUTING.md