diff --git a/extensions/markdown-language-features/src/languageFeatures/dropIntoEditor.ts b/extensions/markdown-language-features/src/languageFeatures/dropIntoEditor.ts
index 7e909f874de..5413e53fdc7 100644
--- a/extensions/markdown-language-features/src/languageFeatures/dropIntoEditor.ts
+++ b/extensions/markdown-language-features/src/languageFeatures/dropIntoEditor.ts
@@ -52,7 +52,7 @@ export function registerDropIntoEditor(selector: vscode.DocumentSelector) {
 			const snippet = new vscode.SnippetString();
 			uris.forEach((uri, i) => {
 				const mdPath = document.uri.scheme === uri.scheme
-					? encodeURIComponent(path.relative(URI.Utils.dirname(document.uri).fsPath, uri.fsPath))
+					? encodeURI(path.relative(URI.Utils.dirname(document.uri).fsPath, uri.fsPath))
 					: uri.toString(false);
 
 				const ext = URI.Utils.extname(uri).toLowerCase();