diff --git a/extensions/markdown-language-features/src/languageFeatures/copyFiles/shared.ts b/extensions/markdown-language-features/src/languageFeatures/copyFiles/shared.ts
index 082f569b0b1..895dd6a3538 100644
--- a/extensions/markdown-language-features/src/languageFeatures/copyFiles/shared.ts
+++ b/extensions/markdown-language-features/src/languageFeatures/copyFiles/shared.ts
@@ -214,9 +214,9 @@ export function appendToLinkSnippet(
 	if (pasteAsMarkdownLink) {
 		snippet.appendText('[');
 		snippet.appendPlaceholder(escapeBrackets(title) || 'Title', placeholderValue);
-		snippet.appendText(isExternalLink ? `](${uriString})` : `](${escapeMarkdownLinkPath(mdPath)})`);
+		snippet.appendText(`](${escapeMarkdownLinkPath(isExternalLink ? uriString : mdPath, isExternalLink)})`);
 	} else {
-		snippet.appendText(isExternalLink ? uriString : escapeMarkdownLinkPath(mdPath));
+		snippet.appendText((escapeMarkdownLinkPath(isExternalLink ? uriString : mdPath, isExternalLink)));
 	}
 	return snippet;
 }
@@ -268,9 +268,9 @@ export function createUriListSnippet(
 					const placeholderText = escapeBrackets(title) || options?.placeholderText || 'Alt text';
 					const placeholderIndex = typeof options?.placeholderStartIndex !== 'undefined' ? options?.placeholderStartIndex + i : (placeholderValue === 0 ? undefined : placeholderValue);
 					snippet.appendPlaceholder(placeholderText, placeholderIndex);
-					snippet.appendText(`](${escapeMarkdownLinkPath(mdPath)})`);
+					snippet.appendText(`](${escapeMarkdownLinkPath(mdPath, isExternalLink)})`);
 				} else {
-					snippet.appendText(escapeMarkdownLinkPath(mdPath));
+					snippet.appendText(escapeMarkdownLinkPath(mdPath, isExternalLink));
 				}
 			}
 		} else {
@@ -397,12 +397,12 @@ function escapeHtmlAttribute(attr: string): string {
 	return encodeURI(attr).replaceAll('"', '"');
 }
 
-function escapeMarkdownLinkPath(mdPath: string): string {
+function escapeMarkdownLinkPath(mdPath: string, isExternalLink: boolean): string {
 	if (needsBracketLink(mdPath)) {
 		return '<' + mdPath.replaceAll('<', '\\<').replaceAll('>', '\\>') + '>';
 	}
 
-	return encodeURI(mdPath);
+	return isExternalLink ? mdPath : encodeURI(mdPath);
 }
 
 function escapeBrackets(value: string): string {
diff --git a/extensions/markdown-language-features/src/test/markdownLink.test.ts b/extensions/markdown-language-features/src/test/markdownLink.test.ts
index ea39cba1bdb..13d56fc5306 100644
--- a/extensions/markdown-language-features/src/test/markdownLink.test.ts
+++ b/extensions/markdown-language-features/src/test/markdownLink.test.ts
@@ -102,6 +102,18 @@ suite('createEditAddingLinksForUriList', () => {
 	});
 
 	suite('appendToLinkSnippet', () => {
+		test('Should create auto link when pasted link has an mismatched parentheses', () => {
+			const uriString = 'https://www.mic(rosoft.com';
+			const snippet = appendToLinkSnippet(new vscode.SnippetString(''), false, 'https:/www.microsoft.com', '', uriString, 0, true);
+			assert.strictEqual(snippet?.value, '<https://www.mic(rosoft.com>');
+		});
+
+		test('Should create snippet with < > when pasted link has an mismatched parentheses', () => {
+			const uriString = 'https://www.mic(rosoft.com';
+			const snippet = appendToLinkSnippet(new vscode.SnippetString(''), true, 'https:/www.microsoft.com', 'abc', uriString, 0, true);
+			assert.strictEqual(snippet?.value, '[${0:abc}](<https://www.mic(rosoft.com>)');
+		});
+
 		test('Should not create Markdown link snippet when pasteAsMarkdownLink is false', () => {
 			const uriString = 'https://www.microsoft.com';
 			const snippet = appendToLinkSnippet(new vscode.SnippetString(''), false, 'https:/www.microsoft.com', '', uriString, 0, true);