diff --git a/CHANGELOG.asciidoc b/CHANGELOG.asciidoc
index 7cb58afbd..99fd043b9 100644
--- a/CHANGELOG.asciidoc
+++ b/CHANGELOG.asciidoc
@@ -49,6 +49,7 @@ Changed
 - `:bind <key>` without a command now shows the existing binding
 - The optional `colorlog` dependency got removed, as qutebrowser now displays
   colored logs without it.
+- URLs are now shown decoded when hovering.
 
 Fixed
 -----
diff --git a/README.asciidoc b/README.asciidoc
index c23b6c86b..99a5a1630 100644
--- a/README.asciidoc
+++ b/README.asciidoc
@@ -154,10 +154,10 @@ Contributors, sorted by the number of commits in descending order:
 * meles5
 * Tarcisio Fedrizzi
 * Philipp Hansch
+* Panagiotis Ktistakis
 * Artur Shaik
 * Nathan Isom
 * Thorsten Wißmann
-* Panagiotis Ktistakis
 * Kevin Velghe
 * Austin Anderson
 * Jimmy
diff --git a/qutebrowser/mainwindow/statusbar/url.py b/qutebrowser/mainwindow/statusbar/url.py
index e4812b384..6c01b8cfe 100644
--- a/qutebrowser/mainwindow/statusbar/url.py
+++ b/qutebrowser/mainwindow/statusbar/url.py
@@ -19,7 +19,7 @@
 
 """URL displayed in the statusbar."""
 
-from PyQt5.QtCore import pyqtSlot, pyqtProperty, Qt
+from PyQt5.QtCore import pyqtSlot, pyqtProperty, Qt, QUrl
 
 from qutebrowser.browser import webview
 from qutebrowser.mainwindow.statusbar import textbase
@@ -153,7 +153,12 @@ class UrlText(textbase.TextBase):
             _text: The text of the hovered link (string)
         """
         if link:
-            self._hover_url = link
+            # We assume that `link` is always be given in a form that generates
+            # a valid QUrl. If this proves to be wrong, we should probably
+            # check and fall back to the text version otherwise.
+            qurl = QUrl(link)
+            assert qurl.isValid(), link
+            self._hover_url = qurl.toDisplayString()
         else:
             self._hover_url = None
         self._update_url()
diff --git a/tests/unit/mainwindow/statusbar/test_url.py b/tests/unit/mainwindow/statusbar/test_url.py
index 1d5878a01..b4397f999 100644
--- a/tests/unit/mainwindow/statusbar/test_url.py
+++ b/tests/unit/mainwindow/statusbar/test_url.py
@@ -76,7 +76,6 @@ def test_set_url(url_widget, url_text):
 @pytest.mark.parametrize('url_text, title, text', [
     ('http://abc123.com/this/awesome/url.html', 'Awesome site', 'click me!'),
     ('https://supersecret.gov/nsa/files.txt', 'Secret area', None),
-    ('Th1$ i$ n0t @ n0rm@L uRL! P@n1c! <-->', 'Probably spam', 'definitely'),
     (None, None, 'did I break?!')
 ])
 def test_set_hover_url(url_widget, url_text, title, text):
@@ -90,6 +89,20 @@ def test_set_hover_url(url_widget, url_text, title, text):
         assert url_widget._urltype == url.UrlType.normal
 
 
+@pytest.mark.parametrize('url_text, expected', [
+    ('http://test.gr/%CE%B1%CE%B2%CE%B3%CE%B4.txt', 'http://test.gr/αβγδ.txt'),
+    ('http://test.ru/%D0%B0%D0%B1%D0%B2%D0%B3.txt', 'http://test.ru/абвг.txt'),
+    ('http://test.com/s%20p%20a%20c%20e.txt', 'http://test.com/s p a c e.txt'),
+    ('http://test.com/%22quotes%22.html', 'http://test.com/%22quotes%22.html'),
+    ('http://username:secret%20password@test.com', 'http://username@test.com')
+])
+def test_set_hover_url_encoded(url_widget, url_text, expected):
+    """Test text when hovering over a percent encoded link."""
+    url_widget.set_hover_url(url_text, 'title', 'text')
+    assert url_widget.text() == expected
+    assert url_widget._urltype == url.UrlType.hover
+
+
 @pytest.mark.parametrize('status, expected', [
     (webview.LoadStatus.success, url.UrlType.success),
     (webview.LoadStatus.success_https, url.UrlType.success_https),