diff --git a/s3compatapi/src/main/java/com/snowflake/s3compatapitestsuite/compatapi/S3CompatStorageClient.java b/s3compatapi/src/main/java/com/snowflake/s3compatapitestsuite/compatapi/S3CompatStorageClient.java
index 183897c..4ab86a0 100644
--- a/s3compatapi/src/main/java/com/snowflake/s3compatapitestsuite/compatapi/S3CompatStorageClient.java
+++ b/s3compatapi/src/main/java/com/snowflake/s3compatapitestsuite/compatapi/S3CompatStorageClient.java
@@ -315,6 +315,9 @@ public List<S3VersionSummary> listVersions(String bucketName, String key, boolea
             for (S3VersionSummary version : s3Summaries) {
                 version.setKey(URLDecoder.decode(version.getKey(), ENCODING));
             }
+            if (prefix != null) {
+                vl.setPrefix(URLDecoder.decode(prefix, ENCODING));
+            }
             String urlEncodedNextKeyMarker = vl.getNextKeyMarker();
             if (null != urlEncodedNextKeyMarker) {
                 String decodedMarker = URLDecoder.decode(urlEncodedNextKeyMarker, ENCODING);
diff --git a/s3compatapi/src/test/java/com/snowflake/s3compatapitestsuite/compatapi/S3CompatApiTest.java b/s3compatapi/src/test/java/com/snowflake/s3compatapitestsuite/compatapi/S3CompatApiTest.java
index 6d97551..0f14161 100644
--- a/s3compatapi/src/test/java/com/snowflake/s3compatapitestsuite/compatapi/S3CompatApiTest.java
+++ b/s3compatapi/src/test/java/com/snowflake/s3compatapitestsuite/compatapi/S3CompatApiTest.java
@@ -295,7 +295,8 @@ void listNextBatchOfVersions() throws IOException {
         updatePrefixForTestCase(TestUtils.OPERATIONS.LIST_VERSIONS);
         // upload same file multiple times, to generate different versions
         File file = new File(EnvConstants.LOCAL_FILE_PATH_2);
-        String filePath = prefix + "/" + EnvConstants.LOCAL_FILE_PATH_2;
+        // % is used to trigger url encoding.
+        String filePath = prefix + "/foo%_foo%/" + EnvConstants.LOCAL_FILE_PATH_2;
         WriteObjectSpec writeObjectSpec = new WriteObjectSpec(
                 EnvConstants.BUCKET_AT_REGION_1 /* bucketName*/,
                 filePath /* filePath */,
@@ -308,8 +309,18 @@ void listNextBatchOfVersions() throws IOException {
             clientWithRegion1.putObject(writeObjectSpec);
         }
         // set max result of list request to 2
-        List<S3VersionSummary> summaries =  clientWithRegion1.listVersions(EnvConstants.BUCKET_AT_REGION_1, prefix + '/' + EnvConstants.LOCAL_FILE_PATH_2, true /* useUrlEncoding */, /* maxKey */ 2);
+        List<S3VersionSummary> summaries =  clientWithRegion1.listVersions(EnvConstants.BUCKET_AT_REGION_1, filePath, true /* useUrlEncoding */, /* maxKey */ 2);
+        List<S3VersionSummary> summaries2 =  clientWithRegion1.listVersions(EnvConstants.BUCKET_AT_REGION_1, filePath, false /* useUrlEncoding */, /* maxKey */ 2);
         Assertions.assertEquals(numVersions, summaries.size());
+        Assertions.assertEquals(numVersions, summaries2.size());
+        for (int i = 0; i < numVersions; i++) {
+            S3VersionSummary v1 = summaries.get(i);
+            S3VersionSummary v2 = summaries2.get(i);
+            Assertions.assertEquals(v1.getKey(), v2.getKey());
+            Assertions.assertEquals(v1.getVersionId(), v2.getVersionId());
+            Assertions.assertEquals(v1.getETag(), v2.getETag());
+            Assertions.assertEquals(v1.getSize(), v2.getSize());
+        }
     }
     @Test
     void deleteObject() throws IOException {