diff --git a/packages/react-router/tests/router.test.tsx b/packages/react-router/tests/router.test.tsx
index 585c641297a..052dafa3774 100644
--- a/packages/react-router/tests/router.test.tsx
+++ b/packages/react-router/tests/router.test.tsx
@@ -706,12 +706,6 @@ describe('encoding/decoding: wildcard routes/params', () => {
 
     await router.load()
 
-    expect(
-      router.state.location.href.endsWith(
-        '/framework/react/guide/file-based-routing%20tanstack',
-      ),
-    ).toBe(true)
-
     expect(router.state.location.href).toBe(
       '/framework/react/guide/file-based-routing%20tanstack',
     )
diff --git a/packages/router-core/src/router.ts b/packages/router-core/src/router.ts
index e783bb7f0a2..9fbb6744bb8 100644
--- a/packages/router-core/src/router.ts
+++ b/packages/router-core/src/router.ts
@@ -1252,9 +1252,34 @@ export class RouterCore<
     previousLocation,
   ) => {
     const parse = ({
+      pathname,
+      search,
+      hash,
       href,
       state,
     }: HistoryLocation): ParsedLocation<FullSearchSchema<TRouteTree>> => {
+      // Fast path: no rewrite configured and pathname doesn't need encoding
+      // Characters that need encoding: space, high unicode, control chars
+      // eslint-disable-next-line no-control-regex
+      if (!this.rewrite && !/[ \x00-\x1f\x7f\u0080-\uffff]/.test(pathname)) {
+        const parsedSearch = this.options.parseSearch(search)
+        const searchStr = this.options.stringifySearch(parsedSearch)
+
+        return {
+          href: pathname + searchStr + hash,
+          publicHref: href,
+          pathname: decodePath(pathname),
+          external: false,
+          searchStr,
+          search: replaceEqualDeep(
+            previousLocation?.search,
+            parsedSearch,
+          ) as any,
+          hash: decodePath(hash.slice(1)),
+          state: replaceEqualDeep(previousLocation?.state, state),
+        }
+      }
+
       // Before we do any processing, we need to allow rewrites to modify the URL
       // build up the full URL by combining the href from history with the router's origin
       const fullUrl = new URL(href, this.origin)
@@ -1276,7 +1301,7 @@ export class RouterCore<
         external: !!this.rewrite && url.origin !== this.origin,
         searchStr,
         search: replaceEqualDeep(previousLocation?.search, parsedSearch) as any,
-        hash: decodePath(url.hash.split('#').reverse()[0] ?? ''),
+        hash: decodePath(url.hash.slice(1)),
         state: replaceEqualDeep(previousLocation?.state, state),
       }
     }