diff --git a/lisp/org.el b/lisp/org.el
index 201dd87..4e2e2c4 100644
--- a/lisp/org.el
+++ b/lisp/org.el
@@ -9639,9 +9639,28 @@ to search for.  If LINE or SEARCH is given, the file will be
 opened in Emacs, unless an entry from org-file-apps that makes
 use of groups in a regexp matches.
 If the file does not exist, an error is thrown."
-  (let* ((file (if (equal path "")
+  (let* ((%xx-decoded-path 
+	  (let ((pos 0) (%xx-decoded-path path))
+	    (setq %xx-decoded-path path)
+	    (while (setq pos (string-match "%\\([0-9A-F]\\)\\([0-9A-F]\\)" %xx-decoded-path pos))
+	      (setq pos (1+ pos)
+		    %xx-decoded-path (replace-match 
+				      (string (let ((code 0) digit)
+						(dotimes (i 2)
+						  (setq 
+						   digit (aref (match-string (1+ i) %xx-decoded-path) 0)
+						   code (+ (if (<= digit ?9)
+							       (- digit ?0)
+							     (- digit 55))
+							   (* 16 code)))) code))
+				      t t %xx-decoded-path)))
+	    ;; remove //localhost/ prefix if any
+	    (and (string-match "\\`//localhost/" %xx-decoded-path)
+		 (setq %xx-decoded-path (substring %xx-decoded-path 12)))
+	    %xx-decoded-path))
+	 (file (if (equal path "")
 		   buffer-file-name
-		 (substitute-in-file-name (expand-file-name path))))
+		 (substitute-in-file-name (expand-file-name %xx-decoded-path))))
 	 (file-apps (append org-file-apps (org-default-apps)))
 	 (apps (org-remove-if
 		'org-file-apps-entry-match-against-dlink-p file-apps))