diff --git a/com.microsoft.java.debug.core/src/main/java/com/microsoft/java/debug/core/adapter/AdapterUtils.java b/com.microsoft.java.debug.core/src/main/java/com/microsoft/java/debug/core/adapter/AdapterUtils.java
index 339b0d17b..96cec919d 100644
--- a/com.microsoft.java.debug.core/src/main/java/com/microsoft/java/debug/core/adapter/AdapterUtils.java
+++ b/com.microsoft.java.debug.core/src/main/java/com/microsoft/java/debug/core/adapter/AdapterUtils.java
@@ -11,8 +11,10 @@
 
 package com.microsoft.java.debug.core.adapter;
 
+import java.io.UnsupportedEncodingException;
 import java.net.URI;
 import java.net.URISyntaxException;
+import java.net.URLDecoder;
 import java.nio.charset.StandardCharsets;
 import java.nio.file.FileSystemNotFoundException;
 import java.nio.file.Files;
@@ -220,4 +222,18 @@ public static String getSHA256HexDigest(String content) {
         }
         return buf.toString();
     }
+
+    /**
+     * Decode the uri string.
+     * @param uri
+     *          the uri string
+     * @return the decoded uri
+     */
+    public static String decodeURIComponent(String uri) {
+        try {
+            return URLDecoder.decode(uri, StandardCharsets.UTF_8.name());
+        } catch (UnsupportedEncodingException e) {
+            return uri;
+        }
+    }
 }
diff --git a/com.microsoft.java.debug.core/src/main/java/com/microsoft/java/debug/core/adapter/handler/SetBreakpointsRequestHandler.java b/com.microsoft.java.debug.core/src/main/java/com/microsoft/java/debug/core/adapter/handler/SetBreakpointsRequestHandler.java
index facd4ad5a..bf7194954 100644
--- a/com.microsoft.java.debug.core/src/main/java/com/microsoft/java/debug/core/adapter/handler/SetBreakpointsRequestHandler.java
+++ b/com.microsoft.java.debug.core/src/main/java/com/microsoft/java/debug/core/adapter/handler/SetBreakpointsRequestHandler.java
@@ -81,7 +81,9 @@ public void handle(Command command, Arguments arguments, Response response, IDeb
         try {
             List<Types.Breakpoint> res = new ArrayList<>();
             IBreakpoint[] toAdds = this.convertClientBreakpointsToDebugger(sourcePath, bpArguments.breakpoints, context);
-            IBreakpoint[] added = manager.setBreakpoints(sourcePath, toAdds, bpArguments.sourceModified);
+            // See the VSCode bug https://github.com/Microsoft/vscode/issues/36471.
+            // The source uri sometimes is encoded by VSCode, the debugger will decode it to keep the uri consistent.
+            IBreakpoint[] added = manager.setBreakpoints(AdapterUtils.decodeURIComponent(sourcePath), toAdds, bpArguments.sourceModified);
             for (int i = 0; i < bpArguments.breakpoints.length; i++) {
                 // For newly added breakpoint, should install it to debuggee first.
                 if (toAdds[i] == added[i] && added[i].className() != null) {