diff --git a/src/client/Microsoft.Identity.Client/Utils/CoreHelpers.cs b/src/client/Microsoft.Identity.Client/Utils/CoreHelpers.cs
index b42abd4221..9adb92a15f 100644
--- a/src/client/Microsoft.Identity.Client/Utils/CoreHelpers.cs
+++ b/src/client/Microsoft.Identity.Client/Utils/CoreHelpers.cs
@@ -33,7 +33,6 @@ public static string UrlEncode(string message)
             }
 
             message = Uri.EscapeDataString(message);
-            message = message.Replace("%20", "+");
 
             return message;
         }
@@ -44,7 +43,7 @@ public static string UrlDecode(string message)
             {
                 return message;
             }
-
+           // Replace "+" with "%20" for backward compatibility with older systems that used "+" for spaces.
             message = message.Replace("+", "%20");
             message = Uri.UnescapeDataString(message);
 
diff --git a/tests/Microsoft.Identity.Test.Unit/CoreTests/CoreHelperTests.cs b/tests/Microsoft.Identity.Test.Unit/CoreTests/CoreHelperTests.cs
new file mode 100644
index 0000000000..a071b9b7b6
--- /dev/null
+++ b/tests/Microsoft.Identity.Test.Unit/CoreTests/CoreHelperTests.cs
@@ -0,0 +1,42 @@
+// Copyright (c) Microsoft Corporation. All rights reserved.
+// Licensed under the MIT License.
+
+using Microsoft.Identity.Client;
+using Microsoft.Identity.Test.Common.Core.Helpers;
+using Microsoft.VisualStudio.TestTools.UnitTesting;
+using Microsoft.Identity.Client.Internal;
+using Microsoft.Identity.Client.Utils;
+
+namespace Microsoft.Identity.Test.Unit.CoreTests
+{
+    [TestClass]
+    public class CoreHelperTests
+    {
+        [TestMethod]
+        public void UrlEncodeDecodeTest()
+        {
+            // url without blank can be converted correctly.
+            Assert.AreEqual(CoreHelpers.UrlEncode("https://login.microsoftonline.com/organizations/oauth2/v2.0/authorize"), 
+                "https%3A%2F%2Flogin.microsoftonline.com%2Forganizations%2Foauth2%2Fv2.0%2Fauthorize");
+            // url with blank can be converted correctly. " " needs to be replaced by "%20"
+            Assert.AreEqual(CoreHelpers.UrlEncode("https://management.core.windows.net//.default openid profile offline_access"), 
+                "https%3A%2F%2Fmanagement.core.windows.net%2F%2F.default%20openid%20profile%20offline_access");
+
+            // Encoded url should be decoded correctly.
+            Assert.AreEqual(CoreHelpers.UrlDecode("https%3A%2F%2Flogin.microsoftonline.com%2Forganizations%2Foauth2%2Fv2.0%2Fauthorize"), 
+                "https://login.microsoftonline.com/organizations/oauth2/v2.0/authorize");
+            // Encoded url with blank should be decoded correctly.
+            Assert.AreEqual(CoreHelpers.UrlDecode("https%3A%2F%2Fmanagement.core.windows.net%2F%2F.default%20openid%20profile%20offline_access"), 
+                "https://management.core.windows.net//.default openid profile offline_access");
+            // Encoded url with "+" should be decoded correctly.
+            Assert.AreEqual(CoreHelpers.UrlDecode("https%3A%2F%2Fmanagement.core.windows.net%2F%2F.default+openid+profile+offline_access"), 
+                "https://management.core.windows.net//.default openid profile offline_access");
+
+            // Test special OAuth characters (query string scenarios)
+            Assert.AreEqual(CoreHelpers.UrlEncode("redirect_uri=https://example.com/callback?code=1234"),
+                "redirect_uri%3Dhttps%3A%2F%2Fexample.com%2Fcallback%3Fcode%3D1234");
+            Assert.AreEqual(CoreHelpers.UrlDecode("redirect_uri%3Dhttps%3A%2F%2Fexample.com%2Fcallback%3Fcode%3D1234"),
+                "redirect_uri=https://example.com/callback?code=1234");
+        }
+    }
+}