diff --git a/packages/markitdown/src/markitdown/_uri_utils.py b/packages/markitdown/src/markitdown/_uri_utils.py
index 9deb8ecab..0014e01cf 100644
--- a/packages/markitdown/src/markitdown/_uri_utils.py
+++ b/packages/markitdown/src/markitdown/_uri_utils.py
@@ -3,7 +3,7 @@
 import os
 from typing import Tuple, Dict
 from urllib.request import url2pathname
-from urllib.parse import urlparse, unquote_to_bytes
+from urllib.parse import unquote, urlparse, unquote_to_bytes
 
 
 def _is_unc_or_device_path(path: str) -> bool:
@@ -66,7 +66,7 @@ def parse_data_uri(uri: str) -> Tuple[str | None, Dict[str, str], bytes]:
         # Handle key=value pairs in the middle
         if "=" in part:
             key, value = part.split("=", 1)
-            attributes[key.lower()] = value
+            attributes[key.lower()] = unquote(value)
         elif len(part) > 0:
             attributes[part.lower()] = ""
 
diff --git a/packages/markitdown/tests/test_module_misc.py b/packages/markitdown/tests/test_module_misc.py
index 434cd3c5b..5527e30ee 100644
--- a/packages/markitdown/tests/test_module_misc.py
+++ b/packages/markitdown/tests/test_module_misc.py
@@ -268,6 +268,12 @@ def test_data_uris() -> None:
     assert attributes["charset"] == "utf-8"
     assert data == b"Hello, World!"
 
+    data_uri = "data:text/plain;charset=utf%2D8,Hello%2C%20World%21"
+    mime_type, attributes, data = parse_data_uri(data_uri)
+    assert mime_type == "text/plain"
+    assert attributes["charset"] == "utf-8"
+    assert data == b"Hello, World!"
+
     data_uri = "data:text/plain;CHARSET=utf-8;BASE64,SGVsbG8sIFdvcmxkIQ=="
     mime_type, attributes, data = parse_data_uri(data_uri)
     assert mime_type == "text/plain"