diff --git a/obsidianpilot/tools/link_management.py b/obsidianpilot/tools/link_management.py
index b638710..e14c818 100644
--- a/obsidianpilot/tools/link_management.py
+++ b/obsidianpilot/tools/link_management.py
@@ -3,6 +3,7 @@
 import re
 import asyncio
 from typing import List, Optional, Dict, Set, Tuple
+from urllib.parse import unquote
 from ..utils.filesystem import get_vault
 from ..utils import is_markdown_file
 from ..utils.validation import validate_note_path
@@ -185,6 +186,9 @@ def extract_links_from_content(content: str, source_path: Optional[str] = None)
         if link_path.startswith('http://') or link_path.startswith('https://'):
             continue
         
+        # URL decode the path
+        link_path = unquote(link_path)
+        
         # Ensure .md extension
         if not link_path.endswith('.md'):
             link_path += '.md'
@@ -351,6 +355,10 @@ async def check_note_for_backlinks(note_path: str) -> List[dict]:
             # Check for markdown-style links
             for match in MARKDOWN_LINK_PATTERN.finditer(content):
                 link_path = match.group(2).strip()
+                
+                # URL decode the path
+                link_path = unquote(link_path)
+                
                 if link_path in target_names:
                     backlink_info = {
                         'source_path': note_path,
diff --git a/tests/test_link_management.py b/tests/test_link_management.py
index 409a21e..adb5fba 100644
--- a/tests/test_link_management.py
+++ b/tests/test_link_management.py
@@ -27,17 +27,17 @@ def test_extract_wiki_links(self):
         
         assert len(links) == 5
         assert links[0] == {
-            'path': 'Daily Note.md',
+            'target': 'Daily Note.md',
             'display_text': 'Daily Note',
             'type': 'wiki'
         }
         assert links[1] == {
-            'path': 'Projects/AI Research.md',
+            'target': 'Projects/AI Research.md',
             'display_text': 'Projects/AI Research',
             'type': 'wiki'
         }
         assert links[2] == {
-            'path': 'Long Note Name.md',
+            'target': 'Long Note Name.md',
             'display_text': 'Short Name',
             'type': 'wiki'
         }
@@ -60,12 +60,12 @@ def test_extract_markdown_links(self):
         
         assert len(links) == 2
         assert links[0] == {
-            'path': 'note.md',
+            'target': 'note.md',
             'display_text': 'markdown link',
             'type': 'markdown'
         }
         assert links[1] == {
-            'path': 'folder/note.md',
+            'target': 'folder/note.md',
             'display_text': 'another one',
             'type': 'markdown'
         }
@@ -144,17 +144,26 @@ def test_normalize_paths(self):
         """Test that paths are normalized correctly."""
         content = "[[Note]] and [[Note.md]] should be treated the same"
         links = extract_links_from_content(content)
-        
+
         assert len(links) == 2
-        assert links[0]['path'] == 'Note.md'
-        assert links[1]['path'] == 'Note.md'
+        assert links[0]['target'] == 'Note.md'
+        assert links[1]['target'] == 'Note.md'
     
     def test_preserve_folder_structure(self):
         """Test that folder paths are preserved."""
         content = "[[Projects/Subfolder/Deep Note]]"
         links = extract_links_from_content(content)
-        
-        assert links[0]['path'] == 'Projects/Subfolder/Deep Note.md'
+
+        assert links[0]['target'] == 'Projects/Subfolder/Deep Note.md'
+    
+    def test_handle_url_encoded_paths(self):
+        """Test that URL-encoded paths are decoded correctly."""
+        content = "[Markdown Note](Markdown%20Note.md)"
+        links = extract_links_from_content(content)
+
+        assert len(links) == 1
+        assert links[0]['target'] == 'Markdown Note.md'
+        assert links[0]['display_text'] == 'Markdown Note'
 
 
 if __name__ == "__main__":