diff --git a/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/VmwareServerDiscoverer.java b/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/VmwareServerDiscoverer.java
index e0c19319a2a..0916813bb8c 100755
--- a/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/VmwareServerDiscoverer.java
+++ b/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/VmwareServerDiscoverer.java
@@ -68,6 +68,7 @@ import org.apache.log4j.Logger;
 import javax.ejb.Local;
 import javax.inject.Inject;
 import javax.naming.ConfigurationException;
+import java.io.UnsupportedEncodingException;
 import java.net.URI;
 import java.net.URLDecoder;
 import java.util.HashMap;
@@ -150,10 +151,14 @@ public class VmwareServerDiscoverer extends DiscovererBase implements Discoverer
                 _clusterDetailsDao.persist(clusterId, clusterDetails);
             }
             String updatedInventoryPath = validateCluster(url, vmwareDc);
-            if (!url.getPath().equals(updatedInventoryPath)) {
-                // If url from API doesn't specify DC then update url in database with DC associated with this zone.
-                clusterDetails.put("url", url.getScheme() + "://" + url.getHost() + updatedInventoryPath);
-                _clusterDetailsDao.persist(clusterId, clusterDetails);
+            try {
+                if (!URLDecoder.decode(url.getPath(), "UTF-8").equals(updatedInventoryPath)) {
+                    // If url from API doesn't specify DC then update url in database with DC associated with this zone.
+                    clusterDetails.put("url", url.getScheme() + "://" + url.getHost() + updatedInventoryPath);
+                    _clusterDetailsDao.persist(clusterId, clusterDetails);
+                }
+            } catch(UnsupportedEncodingException e) {
+                throw new DiscoveredWithErrorException("Unable to decode URL path, URL path : " + url.getPath(), e);
             }
         } else {
             // For legacy zones insist on the old model of asking for credentials for each cluster being added.
@@ -455,12 +460,17 @@ public class VmwareServerDiscoverer extends DiscovererBase implements Discoverer
         String vmwareDcNameFromDb;
         String vmwareDcNameFromApi;
         String vCenterHost;
-        String updatedInventoryPath = url.getPath();
+        String updatedInventoryPath;
         String clusterName = null;
+        String inventoryPath;
 
         vmwareDcNameFromApi = vmwareDcNameFromDb = vmwareDc.getVmwareDatacenterName();
         vCenterHost = vmwareDc.getVcenterHost();
-        String inventoryPath = url.getPath();
+        try {
+            inventoryPath = updatedInventoryPath = URLDecoder.decode(url.getPath(), "UTF-8");
+        } catch(UnsupportedEncodingException e) {
+            throw new DiscoveredWithErrorException("Unable to decode URL path, URL path : " + url.getPath(), e);
+        }
 
         assert (inventoryPath != null);