diff --git a/spring-boot-integration-tests/spring-boot-integration-tests-embedded-servlet-container/src/test/java/org/springframework/boot/context/embedded/IdeApplicationLauncher.java b/spring-boot-integration-tests/spring-boot-integration-tests-embedded-servlet-container/src/test/java/org/springframework/boot/context/embedded/IdeApplicationLauncher.java
index 4bb64855725..5d41434b51a 100644
--- a/spring-boot-integration-tests/spring-boot-integration-tests-embedded-servlet-container/src/test/java/org/springframework/boot/context/embedded/IdeApplicationLauncher.java
+++ b/spring-boot-integration-tests/spring-boot-integration-tests-embedded-servlet-container/src/test/java/org/springframework/boot/context/embedded/IdeApplicationLauncher.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2012-2017 the original author or authors.
+ * Copyright 2012-2018 the original author or authors.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -40,7 +40,7 @@ import org.springframework.util.StringUtils;
  */
 class IdeApplicationLauncher extends AbstractApplicationLauncher {
 
-	private final File exploded = new File("target/ide");
+	private final File exploded = new File("target/ide application");
 
 	IdeApplicationLauncher(ApplicationBuilder applicationBuilder) {
 		super(applicationBuilder);
diff --git a/spring-boot/src/main/java/org/springframework/boot/context/embedded/AbstractEmbeddedServletContainerFactory.java b/spring-boot/src/main/java/org/springframework/boot/context/embedded/AbstractEmbeddedServletContainerFactory.java
index deaf44cc43b..ae2c7f76090 100644
--- a/spring-boot/src/main/java/org/springframework/boot/context/embedded/AbstractEmbeddedServletContainerFactory.java
+++ b/spring-boot/src/main/java/org/springframework/boot/context/embedded/AbstractEmbeddedServletContainerFactory.java
@@ -18,10 +18,12 @@ package org.springframework.boot.context.embedded;
 
 import java.io.File;
 import java.io.IOException;
+import java.io.UnsupportedEncodingException;
 import java.net.JarURLConnection;
 import java.net.URL;
 import java.net.URLClassLoader;
 import java.net.URLConnection;
+import java.net.URLDecoder;
 import java.security.CodeSource;
 import java.util.ArrayList;
 import java.util.Arrays;
@@ -96,56 +98,71 @@ public abstract class AbstractEmbeddedServletContainerFactory
 		List<URL> staticResourceUrls = new ArrayList<URL>();
 		if (classLoader instanceof URLClassLoader) {
 			for (URL url : ((URLClassLoader) classLoader).getURLs()) {
-				try {
-					if ("file".equals(url.getProtocol())) {
-						File file = new File(url.getFile());
-						if (file.isDirectory()
-								&& new File(file, "META-INF/resources").isDirectory()) {
-							staticResourceUrls.add(url);
-						}
-						else if (isResourcesJar(file)) {
-							staticResourceUrls.add(url);
-						}
-					}
-					else {
-						URLConnection connection = url.openConnection();
-						if (connection instanceof JarURLConnection) {
-							if (isResourcesJar((JarURLConnection) connection)) {
-								staticResourceUrls.add(url);
-							}
-						}
-					}
-				}
-				catch (IOException ex) {
-					throw new IllegalStateException(ex);
+				if (isStaticResourceJar(url)) {
+					staticResourceUrls.add(url);
 				}
 			}
 		}
 		return staticResourceUrls;
 	}
 
+	private boolean isStaticResourceJar(URL url) {
+		try {
+			if ("file".equals(url.getProtocol())) {
+				File file = new File(getDecodedFile(url), "UTF-8");
+				return (file.isDirectory()
+						&& new File(file, "META-INF/resources").isDirectory())
+						|| isResourcesJar(file);
+			}
+			else {
+				URLConnection connection = url.openConnection();
+				if (connection instanceof JarURLConnection
+						&& isResourcesJar((JarURLConnection) connection)) {
+					return true;
+				}
+			}
+		}
+		catch (IOException ex) {
+			throw new IllegalStateException(ex);
+		}
+		return false;
+	}
+
+	protected final String getDecodedFile(URL url) {
+		try {
+			return URLDecoder.decode(url.getFile(), "UTF-8");
+		}
+		catch (UnsupportedEncodingException ex) {
+			throw new IllegalStateException(
+					"Failed to decode '" + url.getFile() + "' using UTF-8");
+		}
+	}
+
 	private boolean isResourcesJar(JarURLConnection connection) {
 		try {
 			return isResourcesJar(connection.getJarFile());
 		}
 		catch (IOException ex) {
+			this.logger.warn("Unable to open jar from connection '" + connection
+					+ "' to determine if it contains static resources", ex);
 			return false;
 		}
 	}
 
 	private boolean isResourcesJar(File file) {
 		try {
-			return isResourcesJar(new JarFile(file));
+			return file.getName().endsWith(".jar") && isResourcesJar(new JarFile(file));
 		}
 		catch (IOException ex) {
+			this.logger.warn("Unable to open jar '" + file
+					+ "' to determine if it contains static resources", ex);
 			return false;
 		}
 	}
 
 	private boolean isResourcesJar(JarFile jar) throws IOException {
 		try {
-			return jar.getName().endsWith(".jar")
-					&& (jar.getJarEntry("META-INF/resources") != null);
+			return jar.getJarEntry("META-INF/resources") != null;
 		}
 		finally {
 			jar.close();
diff --git a/spring-boot/src/main/java/org/springframework/boot/context/embedded/jetty/JettyEmbeddedServletContainerFactory.java b/spring-boot/src/main/java/org/springframework/boot/context/embedded/jetty/JettyEmbeddedServletContainerFactory.java
index 6ec3274a2a8..dac1fc034cb 100644
--- a/spring-boot/src/main/java/org/springframework/boot/context/embedded/jetty/JettyEmbeddedServletContainerFactory.java
+++ b/spring-boot/src/main/java/org/springframework/boot/context/embedded/jetty/JettyEmbeddedServletContainerFactory.java
@@ -433,7 +433,7 @@ public class JettyEmbeddedServletContainerFactory
 
 	private Resource createResource(URL url) throws IOException {
 		if ("file".equals(url.getProtocol())) {
-			File file = new File(url.getFile());
+			File file = new File(getDecodedFile(url));
 			if (file.isFile()) {
 				return Resource.newResource("jar:" + url + "!/META-INF/resources");
 			}
diff --git a/spring-boot/src/main/java/org/springframework/boot/context/embedded/tomcat/TomcatResources.java b/spring-boot/src/main/java/org/springframework/boot/context/embedded/tomcat/TomcatResources.java
index 716ff9f03cf..e9150258f61 100644
--- a/spring-boot/src/main/java/org/springframework/boot/context/embedded/tomcat/TomcatResources.java
+++ b/spring-boot/src/main/java/org/springframework/boot/context/embedded/tomcat/TomcatResources.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2012-2017 the original author or authors.
+ * Copyright 2012-2018 the original author or authors.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -16,9 +16,11 @@
 
 package org.springframework.boot.context.embedded.tomcat;
 
+import java.io.UnsupportedEncodingException;
 import java.lang.reflect.Method;
 import java.net.MalformedURLException;
 import java.net.URL;
+import java.net.URLDecoder;
 import java.util.List;
 
 import javax.naming.directory.DirContext;
@@ -47,7 +49,7 @@ abstract class TomcatResources {
 
 	void addResourceJars(List<URL> resourceJarUrls) {
 		for (URL url : resourceJarUrls) {
-			String file = url.getFile();
+			String file = getDecodedFile(url);
 			if (file.endsWith(".jar") || file.endsWith(".jar!/")) {
 				String jar = url.toString();
 				if (!jar.startsWith("jar:")) {
@@ -62,6 +64,16 @@ abstract class TomcatResources {
 		}
 	}
 
+	private String getDecodedFile(URL url) {
+		try {
+			return URLDecoder.decode(url.getFile(), "UTF-8");
+		}
+		catch (UnsupportedEncodingException ex) {
+			throw new IllegalStateException(
+					"Failed to decode '" + url.getFile() + "' using UTF-8");
+		}
+	}
+
 	protected final Context getContext() {
 		return this.context;
 	}
diff --git a/spring-boot/src/main/java/org/springframework/boot/context/embedded/undertow/UndertowEmbeddedServletContainerFactory.java b/spring-boot/src/main/java/org/springframework/boot/context/embedded/undertow/UndertowEmbeddedServletContainerFactory.java
index 942bc01727d..a290a3216c0 100644
--- a/spring-boot/src/main/java/org/springframework/boot/context/embedded/undertow/UndertowEmbeddedServletContainerFactory.java
+++ b/spring-boot/src/main/java/org/springframework/boot/context/embedded/undertow/UndertowEmbeddedServletContainerFactory.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2012-2017 the original author or authors.
+ * Copyright 2012-2018 the original author or authors.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -494,7 +494,7 @@ public class UndertowEmbeddedServletContainerFactory
 		resourceManagers.add(rootResourceManager);
 		for (URL url : metaInfResourceUrls) {
 			if ("file".equals(url.getProtocol())) {
-				File file = new File(url.getFile());
+				File file = new File(getDecodedFile(url));
 				if (file.isFile()) {
 					try {
 						resourceJarUrls.add(new URL("jar:" + url + "!/"));
diff --git a/spring-boot/src/test/java/org/springframework/boot/context/embedded/AbstractEmbeddedServletContainerFactoryTests.java b/spring-boot/src/test/java/org/springframework/boot/context/embedded/AbstractEmbeddedServletContainerFactoryTests.java
index 72f04946ebf..59a93177335 100644
--- a/spring-boot/src/test/java/org/springframework/boot/context/embedded/AbstractEmbeddedServletContainerFactoryTests.java
+++ b/spring-boot/src/test/java/org/springframework/boot/context/embedded/AbstractEmbeddedServletContainerFactoryTests.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2012-2017 the original author or authors.
+ * Copyright 2012-2018 the original author or authors.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.