diff --git a/modules/mono/editor/GodotTools/GodotTools.Core/StringExtensions.cs b/modules/mono/editor/GodotTools/GodotTools.Core/StringExtensions.cs
index e6b0e8f1df9..ae2dbbf58d5 100644
--- a/modules/mono/editor/GodotTools/GodotTools.Core/StringExtensions.cs
+++ b/modules/mono/editor/GodotTools/GodotTools.Core/StringExtensions.cs
@@ -14,10 +14,11 @@ namespace GodotTools.Core
             if (Path.DirectorySeparatorChar == '\\')
                 dir = dir.Replace("/", "\\") + "\\";
 
-            Uri fullPath = new Uri(Path.GetFullPath(path), UriKind.Absolute);
-            Uri relRoot = new Uri(Path.GetFullPath(dir), UriKind.Absolute);
+            var fullPath = new Uri(Path.GetFullPath(path), UriKind.Absolute);
+            var relRoot = new Uri(Path.GetFullPath(dir), UriKind.Absolute);
 
-            return relRoot.MakeRelativeUri(fullPath).ToString();
+            // MakeRelativeUri converts spaces to %20, hence why we need UnescapeDataString
+            return Uri.UnescapeDataString(relRoot.MakeRelativeUri(fullPath).ToString());
         }
 
         public static string NormalizePath(this string path)