diff --git a/independent-projects/resteasy-reactive/server/runtime/src/main/java/org/jboss/resteasy/reactive/server/core/ResteasyReactiveRequestContext.java b/independent-projects/resteasy-reactive/server/runtime/src/main/java/org/jboss/resteasy/reactive/server/core/ResteasyReactiveRequestContext.java
index dedaf7dd127cd..2248a8f7763ac 100644
--- a/independent-projects/resteasy-reactive/server/runtime/src/main/java/org/jboss/resteasy/reactive/server/core/ResteasyReactiveRequestContext.java
+++ b/independent-projects/resteasy-reactive/server/runtime/src/main/java/org/jboss/resteasy/reactive/server/core/ResteasyReactiveRequestContext.java
@@ -226,18 +226,20 @@ public void setMaxPathParams(int maxPathParams) {
         }
     }
 
-    public String getPathParam(int index) {
-        return doGetPathParam(index, pathParamValues);
+    public String getPathParam(int index, boolean encoded) {
+        return doGetPathParam(index, pathParamValues, encoded);
     }
 
-    private String doGetPathParam(int index, Object pathParamValues) {
+    private String doGetPathParam(int index, Object pathParamValues, boolean encoded) {
         if (pathParamValues instanceof String[]) {
-            return ((String[]) pathParamValues)[index];
+            String pathParam = ((String[]) pathParamValues)[index];
+            return encoded ? pathParam : Encode.decodePath(pathParam);
         }
         if (index > 1) {
             throw new IndexOutOfBoundsException();
         }
-        return (String) pathParamValues;
+        String pathParam = (String) pathParamValues;
+        return encoded ? pathParam : Encode.decodePath(pathParam);
     }
 
     public ResteasyReactiveRequestContext setPathParamValue(int index, String value) {
@@ -926,18 +928,11 @@ public String getPathParameter(String name, boolean encoded) {
         Integer index = target.getPathParameterIndexes().get(name);
         String value;
         if (index != null) {
-            value = getPathParam(index);
-        } else {
-            // Check previous resources if the path is not defined in the current target
-            value = getResourceLocatorPathParam(name);
-        }
-
-        // It's possible to inject a path param that's not defined, return null in this case
-        if (encoded && value != null) {
-            return Encode.encodeQueryParam(value);
+            return getPathParam(index, encoded);
         }
 
-        return value;
+        // Check previous resources if the path is not defined in the current target
+        return getResourceLocatorPathParam(name, encoded);
     }
 
     @Override
@@ -996,8 +991,8 @@ public ResteasyReactiveResourceInfo getResteasyReactiveResourceInfo() {
 
     public abstract Runnable registerTimer(long millis, Runnable task);
 
-    public String getResourceLocatorPathParam(String name) {
-        return getResourceLocatorPathParam(name, (PreviousResource) getProperty(PreviousResource.PROPERTY_KEY));
+    public String getResourceLocatorPathParam(String name, boolean encoded) {
+        return getResourceLocatorPathParam(name, (PreviousResource) getProperty(PreviousResource.PROPERTY_KEY), encoded);
     }
 
     public FormData getFormData() {
@@ -1009,7 +1004,7 @@ public ResteasyReactiveRequestContext setFormData(FormData formData) {
         return this;
     }
 
-    private String getResourceLocatorPathParam(String name, PreviousResource previousResource) {
+    private String getResourceLocatorPathParam(String name, PreviousResource previousResource, boolean encoded) {
         if (previousResource == null) {
             return null;
         }
@@ -1020,13 +1015,13 @@ private String getResourceLocatorPathParam(String name, PreviousResource previou
             for (URITemplate.TemplateComponent component : classPath.components) {
                 if (component.name != null) {
                     if (component.name.equals(name)) {
-                        return doGetPathParam(index, previousResource.locatorPathParamValues);
+                        return doGetPathParam(index, previousResource.locatorPathParamValues, encoded);
                     }
                     index++;
                 } else if (component.names != null) {
                     for (String nm : component.names) {
                         if (nm.equals(name)) {
-                            return doGetPathParam(index, previousResource.locatorPathParamValues);
+                            return doGetPathParam(index, previousResource.locatorPathParamValues, encoded);
                         }
                     }
                     index++;
@@ -1036,19 +1031,19 @@ private String getResourceLocatorPathParam(String name, PreviousResource previou
         for (URITemplate.TemplateComponent component : previousResource.locatorTarget.getPath().components) {
             if (component.name != null) {
                 if (component.name.equals(name)) {
-                    return doGetPathParam(index, previousResource.locatorPathParamValues);
+                    return doGetPathParam(index, previousResource.locatorPathParamValues, encoded);
                 }
                 index++;
             } else if (component.names != null) {
                 for (String nm : component.names) {
                     if (nm.equals(name)) {
-                        return doGetPathParam(index, previousResource.locatorPathParamValues);
+                        return doGetPathParam(index, previousResource.locatorPathParamValues, encoded);
                     }
                 }
                 index++;
             }
         }
-        return getResourceLocatorPathParam(name, previousResource.prev);
+        return getResourceLocatorPathParam(name, previousResource.prev, encoded);
     }
 
     public abstract boolean resumeExternalProcessing();
diff --git a/independent-projects/resteasy-reactive/server/runtime/src/main/java/org/jboss/resteasy/reactive/server/core/parameters/LocatableResourcePathParamExtractor.java b/independent-projects/resteasy-reactive/server/runtime/src/main/java/org/jboss/resteasy/reactive/server/core/parameters/LocatableResourcePathParamExtractor.java
index 835be0b515340..e478141b7c45c 100644
--- a/independent-projects/resteasy-reactive/server/runtime/src/main/java/org/jboss/resteasy/reactive/server/core/parameters/LocatableResourcePathParamExtractor.java
+++ b/independent-projects/resteasy-reactive/server/runtime/src/main/java/org/jboss/resteasy/reactive/server/core/parameters/LocatableResourcePathParamExtractor.java
@@ -12,7 +12,7 @@ public LocatableResourcePathParamExtractor(String name) {
 
     @Override
     public Object extractParameter(ResteasyReactiveRequestContext context) {
-        return context.getResourceLocatorPathParam(name);
+        return context.getResourceLocatorPathParam(name, false);
     }
 
 }
diff --git a/independent-projects/resteasy-reactive/server/runtime/src/main/java/org/jboss/resteasy/reactive/server/core/parameters/PathParamExtractor.java b/independent-projects/resteasy-reactive/server/runtime/src/main/java/org/jboss/resteasy/reactive/server/core/parameters/PathParamExtractor.java
index ccfa99edca5c3..d56f72b856bf5 100644
--- a/independent-projects/resteasy-reactive/server/runtime/src/main/java/org/jboss/resteasy/reactive/server/core/parameters/PathParamExtractor.java
+++ b/independent-projects/resteasy-reactive/server/runtime/src/main/java/org/jboss/resteasy/reactive/server/core/parameters/PathParamExtractor.java
@@ -1,6 +1,8 @@
 package org.jboss.resteasy.reactive.server.core.parameters;
 
+import java.util.Arrays;
 import java.util.List;
+import java.util.stream.Collectors;
 
 import org.jboss.resteasy.reactive.common.util.Encode;
 import org.jboss.resteasy.reactive.server.core.ResteasyReactiveRequestContext;
@@ -19,14 +21,14 @@ public PathParamExtractor(int index, boolean encoded, boolean single) {
 
     @Override
     public Object extractParameter(ResteasyReactiveRequestContext context) {
-        String pathParam = context.getPathParam(index);
-        if (encoded) {
-            pathParam = Encode.encodeQueryParam(pathParam);
-        }
+        String pathParam = context.getPathParam(index, true);
         if (single) {
-            return pathParam;
+            return encoded ? pathParam : Encode.decodePath(pathParam);
         } else {
-            return List.of(pathParam.split("/"));
+            return encoded
+                    ? List.of(pathParam.split("/"))
+                    : Arrays.stream(pathParam.split("/")).map(Encode::decodePath)
+                            .collect(Collectors.toList());
         }
     }
 }
diff --git a/independent-projects/resteasy-reactive/server/runtime/src/main/java/org/jboss/resteasy/reactive/server/jaxrs/UriInfoImpl.java b/independent-projects/resteasy-reactive/server/runtime/src/main/java/org/jboss/resteasy/reactive/server/jaxrs/UriInfoImpl.java
index 7cbd13cb272a6..987bbf2838113 100644
--- a/independent-projects/resteasy-reactive/server/runtime/src/main/java/org/jboss/resteasy/reactive/server/jaxrs/UriInfoImpl.java
+++ b/independent-projects/resteasy-reactive/server/runtime/src/main/java/org/jboss/resteasy/reactive/server/jaxrs/UriInfoImpl.java
@@ -152,7 +152,7 @@ public MultivaluedMap<String, String> getPathParameters(boolean decode) {
             RuntimeResource target = currentRequest.getTarget();
             if (target != null) { // a target can be null if this happens in a filter that runs before the target is set
                 for (Entry<String, Integer> pathParam : target.getPathParameterIndexes().entrySet()) {
-                    pathParams.add(pathParam.getKey(), currentRequest.getPathParam(pathParam.getValue()));
+                    pathParams.add(pathParam.getKey(), currentRequest.getPathParam(pathParam.getValue(), false));
                 }
             }
         }
diff --git a/independent-projects/resteasy-reactive/server/runtime/src/main/java/org/jboss/resteasy/reactive/server/mapping/RequestMapper.java b/independent-projects/resteasy-reactive/server/runtime/src/main/java/org/jboss/resteasy/reactive/server/mapping/RequestMapper.java
index 5d8d5fc931191..7fd7cb535f518 100644
--- a/independent-projects/resteasy-reactive/server/runtime/src/main/java/org/jboss/resteasy/reactive/server/mapping/RequestMapper.java
+++ b/independent-projects/resteasy-reactive/server/runtime/src/main/java/org/jboss/resteasy/reactive/server/mapping/RequestMapper.java
@@ -8,8 +8,6 @@
 import java.util.Map;
 import java.util.regex.Matcher;
 
-import org.jboss.resteasy.reactive.common.util.URIDecoder;
-
 public class RequestMapper<T> {
 
     private static final String[] EMPTY_STRING_ARRAY = new String[0];
@@ -111,7 +109,7 @@ private RequestMatch<T> mapFromPathMatcher(String path, PathMatcher.PathMatch<Ar
                     while (matchPos < pathLength && path.charAt(matchPos) != '/') {
                         matchPos++;
                     }
-                    params[paramCount++] = URIDecoder.decodeURIComponent(path.substring(start, matchPos), false);
+                    params[paramCount++] = path.substring(start, matchPos);
                 }
             }
             if (!matched) {
diff --git a/independent-projects/resteasy-reactive/server/vertx/src/test/java/org/jboss/resteasy/reactive/server/vertx/test/matching/RegexMatchTest.java b/independent-projects/resteasy-reactive/server/vertx/src/test/java/org/jboss/resteasy/reactive/server/vertx/test/matching/RegexMatchTest.java
index 8a2b6f529eff3..d3cf07d6bf142 100644
--- a/independent-projects/resteasy-reactive/server/vertx/src/test/java/org/jboss/resteasy/reactive/server/vertx/test/matching/RegexMatchTest.java
+++ b/independent-projects/resteasy-reactive/server/vertx/src/test/java/org/jboss/resteasy/reactive/server/vertx/test/matching/RegexMatchTest.java
@@ -41,6 +41,10 @@ public void testLiteralInRegex() {
                 .then()
                 .statusCode(200)
                 .body(equalTo("plain:abb/foo/alongpathtotriggerbug"));
+        RestAssured.get("/regex/first space/foo/second space")
+                .then()
+                .statusCode(200)
+                .body(equalTo("plain:first space/foo/second space"));
         RestAssured.get("/regex/abb/literal/ddc")
                 .then()
                 .statusCode(200)