diff --git a/src/screenshot-application.c b/src/screenshot-application.c
index 95aa284..fffb0e8 100644
--- a/src/screenshot-application.c
+++ b/src/screenshot-application.c
@@ -138,7 +138,8 @@ save_pixbuf_handle_error (ScreenshotApplication *self,
           !self->priv->should_overwrite)
         {
           gchar *folder = screenshot_dialog_get_folder (dialog);
-          gchar *folder_name = g_path_get_basename (folder);
+          gchar *folder_uri = g_path_get_basename (folder);
+          gchar *folder_name = g_uri_unescape_string (folder_uri, NULL);
           gchar *file_name = screenshot_dialog_get_filename (dialog);
           gchar *detail = g_strdup_printf (_("A file named \"%s\" already exists in \"%s\""),
                                            file_name, folder_name);
@@ -151,6 +152,7 @@ save_pixbuf_handle_error (ScreenshotApplication *self,
                                              detail);
 
           g_free (folder);
+          g_free (folder_uri);
           g_free (folder_name);
           g_free (file_name);
           g_free (detail);
