diff --git a/src/service/location.js b/src/service/location.js
index 1accb9931fc4..b02704324d57 100644
--- a/src/service/location.js
+++ b/src/service/location.js
@@ -335,7 +335,7 @@ LocationUrl.prototype = {
       if (paramValue === null) {
         delete this.$$search[search];
       } else {
-        this.$$search[search] = encodeUriQuery(paramValue);
+        this.$$search[search] = paramValue;
       }
     } else {
       this.$$search = isString(search) ? parseKeyValue(search) : search;
diff --git a/test/service/locationSpec.js b/test/service/locationSpec.js
index 646a9ca04951..049f49d7e3cb 100644
--- a/test/service/locationSpec.js
+++ b/test/service/locationSpec.js
@@ -330,6 +330,17 @@ describe('$location', function() {
         expect(url.search()).toEqual({'i j': '<>#'});
         expect(url.hash()).toBe('x <>#');
       });
+
+      it('should return decoded characters for search specified in URL', function() {
+        var locationUrl = new LocationUrl('http://host.com/?q=1%2F2%203');
+        expect(locationUrl.search()).toEqual({'q': '1/2 3'});
+      });
+
+      it('should return decoded characters for search specified with setter', function() {
+        var locationUrl = new LocationUrl('http://host.com/');
+        locationUrl.search('q', '1/2 3');
+        expect(locationUrl.search()).toEqual({'q': '1/2 3'});
+      });
     });
   });