diff --git a/src/tasks/OneDriveLargeFileUploadTask.ts b/src/tasks/OneDriveLargeFileUploadTask.ts
index 2716f4a22..7f069ee28 100644
--- a/src/tasks/OneDriveLargeFileUploadTask.ts
+++ b/src/tasks/OneDriveLargeFileUploadTask.ts
@@ -59,7 +59,9 @@ export class OneDriveLargeFileUploadTask extends LargeFileUploadTask {
 		if (path[path.length - 1] !== "/") {
 			path = `${path}/`;
 		}
-		return encodeURI(`/me/drive/root:${path}${fileName}:/createUploadSession`);
+		// we choose to encode each component of the file path separately because when encoding full URI
+		// with encodeURI, special characters like # or % in the file name doesn't get encoded as desired
+		return `/me/drive/root:${path.split('/').map(p => encodeURIComponent(p)).join('/')}${encodeURIComponent(fileName)}:/createUploadSession`;
 	}
 
 	/**