diff --git a/dvc/state.py b/dvc/state.py
index 136f99a44f..9803e40c24 100644
--- a/dvc/state.py
+++ b/dvc/state.py
@@ -496,8 +496,14 @@ def _connect_sqlite(filename, options):
 
 
 def _build_sqlite_uri(filename, options):
+    # In the doc mentioned below we only need to replace ? -> %3f and
+    # # -> %23, but, if present, we also need to replace % -> %25 first
+    # (happens when we are on a weird FS that shows urlencoded filenames
+    # instead of proper ones) to not confuse sqlite.
+    uri_path = filename.replace("%", "%25")
+
     # Convert filename to uri according to https://www.sqlite.org/uri.html, 3.1
-    uri_path = filename.replace("?", "%3f").replace("#", "%23")
+    uri_path = uri_path.replace("?", "%3f").replace("#", "%23")
     if os.name == "nt":
         uri_path = uri_path.replace("\\", "/")
         uri_path = re.sub(r"^([a-z]:)", "/\\1", uri_path, flags=re.I)
diff --git a/tests/unit/test_state.py b/tests/unit/test_state.py
new file mode 100644
index 0000000000..27f55b8528
--- /dev/null
+++ b/tests/unit/test_state.py
@@ -0,0 +1,22 @@
+import pytest
+from dvc.state import _build_sqlite_uri
+
+
+@pytest.mark.parametrize(
+    "path, osname, result",
+    [
+        ("/abs/path", "posix", "file:///abs/path"),
+        ("C:\\abs\\path", "nt", "file:///C:/abs/path"),
+        ("/abs/p?ath", "posix", "file:///abs/p%3fath"),
+        ("C:\\abs\\p?ath", "nt", "file:///C:/abs/p%3fath"),
+        ("/abs/p#ath", "posix", "file:///abs/p%23ath"),
+        ("C:\\abs\\p#ath", "nt", "file:///C:/abs/p%23ath"),
+        ("/abs/path space", "posix", "file:///abs/path space"),
+        ("C:\\abs\\path space", "nt", "file:///C:/abs/path space"),
+        ("/abs/path%20encoded", "posix", "file:///abs/path%2520encoded"),
+        ("C:\\abs\\path%20encoded", "nt", "file:///C:/abs/path%2520encoded"),
+    ],
+)
+def test_build_uri(path, osname, result, mocker):
+    mocker.patch("os.name", osname)
+    assert _build_sqlite_uri(path, {}) == result