diff --git a/changelog/unreleased/fix-target-uri-for-webdav-prefix.md b/changelog/unreleased/fix-target-uri-for-webdav-prefix.md
new file mode 100644
index 0000000000..7bbad59a50
--- /dev/null
+++ b/changelog/unreleased/fix-target-uri-for-webdav-prefix.md
@@ -0,0 +1,5 @@
+Bugfix: Fix datatxtarget uri when prefix is used
+
+When a webdav prefix is used it appears in both host and name parameter of the target uri for data transfer. This PR fixes that.
+
+https://github.com/cs3org/reva/pull/2973
diff --git a/internal/grpc/services/gateway/ocmshareprovider.go b/internal/grpc/services/gateway/ocmshareprovider.go
index 5e8df9efc8..afdb56c459 100644
--- a/internal/grpc/services/gateway/ocmshareprovider.go
+++ b/internal/grpc/services/gateway/ocmshareprovider.go
@@ -279,22 +279,31 @@ func (s *svc) UpdateReceivedOCMShare(ctx context.Context, req *ocm.UpdateReceive
 							Status: &rpc.Status{Code: rpc.Code_CODE_INTERNAL},
 						}, nil
 					}
-					var srcEndpoint string
-					var srcEndpointBaseURI string
+					var srcServiceHost string
+					var srcEndpointPath string
 					// target URI scheme will be the webdav endpoint scheme
 					var srcEndpointScheme string
 					for _, s := range meshProvider.ProviderInfo.Services {
 						if strings.ToLower(s.Endpoint.Type.Name) == "webdav" {
-							url, err := url.Parse(s.Endpoint.Path)
+							endpointURL, err := url.Parse(s.Endpoint.Path)
 							if err != nil {
 								log.Err(err).Msg("gateway: error calling UpdateReceivedShare: unable to parse webdav endpoint " + s.Endpoint.Path)
 								return &ocm.UpdateReceivedOCMShareResponse{
 									Status: &rpc.Status{Code: rpc.Code_CODE_INTERNAL},
 								}, nil
 							}
-							srcEndpoint = url.Host
-							srcEndpointBaseURI = url.Path
-							srcEndpointScheme = url.Scheme
+							urlServiceHostFull, err := url.Parse(s.Host)
+							if err != nil {
+								log.Err(err).Msg("gateway: error calling UpdateReceivedShare: unable to parse webdav service host " + s.Host)
+								return &ocm.UpdateReceivedOCMShareResponse{
+									Status: &rpc.Status{Code: rpc.Code_CODE_INTERNAL},
+								}, nil
+							}
+							srcServiceHost = urlServiceHostFull.Host + urlServiceHostFull.Path
+							// optional prefix must only appear in target url path:
+							// http://...token...@reva.eu/prefix/?name=remote.php/webdav/home/...
+							srcEndpointPath = strings.TrimPrefix(endpointURL.Path, urlServiceHostFull.Path)
+							srcEndpointScheme = endpointURL.Scheme
 							break
 						}
 					}
@@ -316,8 +325,8 @@ func (s *svc) UpdateReceivedOCMShare(ctx context.Context, req *ocm.UpdateReceive
 						}, nil
 					}
 
-					srcPath := path.Join(srcEndpointBaseURI, share.GetShare().Name)
-					srcTargetURI := fmt.Sprintf("%s://%s@%s?name=%s", srcEndpointScheme, srcToken, srcEndpoint, srcPath)
+					srcPath := path.Join(srcEndpointPath, share.GetShare().Name)
+					srcTargetURI := fmt.Sprintf("%s://%s@%s?name=%s", srcEndpointScheme, srcToken, srcServiceHost, srcPath)
 
 					// get the webdav endpoint of the grantee's idp
 					var granteeIdp string
@@ -334,16 +343,32 @@ func (s *svc) UpdateReceivedOCMShare(ctx context.Context, req *ocm.UpdateReceive
 							Status: &rpc.Status{Code: rpc.Code_CODE_INTERNAL},
 						}, nil
 					}
-					url, err := url.Parse(destWebdavEndpoint)
+					destWebdavEndpointURL, err := url.Parse(destWebdavEndpoint)
 					if err != nil {
 						log.Err(err).Msg("gateway: error calling UpdateReceivedShare: unable to parse webdav endpoint " + destWebdavEndpoint)
 						return &ocm.UpdateReceivedOCMShareResponse{
 							Status: &rpc.Status{Code: rpc.Code_CODE_INTERNAL},
 						}, nil
 					}
-					destEndpoint := url.Host
-					destEndpointBaseURI := url.Path
-					destEndpointScheme := url.Scheme
+					destWebdavHost, err := s.getWebdavHost(ctx, granteeIdp)
+					if err != nil {
+						log.Err(err).Msg("gateway: error calling UpdateReceivedShare")
+						return &ocm.UpdateReceivedOCMShareResponse{
+							Status: &rpc.Status{Code: rpc.Code_CODE_INTERNAL},
+						}, nil
+					}
+					urlServiceHostFull, err := url.Parse(destWebdavHost)
+					if err != nil {
+						log.Err(err).Msg("gateway: error calling UpdateReceivedShare: unable to parse webdav service host " + destWebdavHost)
+						return &ocm.UpdateReceivedOCMShareResponse{
+							Status: &rpc.Status{Code: rpc.Code_CODE_INTERNAL},
+						}, nil
+					}
+					destServiceHost := urlServiceHostFull.Host + urlServiceHostFull.Path
+					// optional prefix must only appear in target url path:
+					// http://...token...@reva.eu/prefix/?name=remote.php/webdav/home/...
+					destEndpointPath := strings.TrimPrefix(destWebdavEndpointURL.Path, urlServiceHostFull.Path)
+					destEndpointScheme := destWebdavEndpointURL.Scheme
 					destToken := ctxpkg.ContextMustGetToken(ctx)
 					homeRes, err := s.GetHome(ctx, &provider.GetHomeRequest{})
 					if err != nil {
@@ -352,8 +377,8 @@ func (s *svc) UpdateReceivedOCMShare(ctx context.Context, req *ocm.UpdateReceive
 							Status: &rpc.Status{Code: rpc.Code_CODE_INTERNAL},
 						}, nil
 					}
-					destPath := path.Join(destEndpointBaseURI, homeRes.Path, s.c.DataTransfersFolder, path.Base(share.GetShare().Name))
-					destTargetURI := fmt.Sprintf("%s://%s@%s?name=%s", destEndpointScheme, destToken, destEndpoint, destPath)
+					destPath := path.Join(destEndpointPath, homeRes.Path, s.c.DataTransfersFolder, path.Base(share.GetShare().Name))
+					destTargetURI := fmt.Sprintf("%s://%s@%s?name=%s", destEndpointScheme, destToken, destServiceHost, destPath)
 
 					opaqueObj := &types.Opaque{
 						Map: map[string]*types.OpaqueEntry{
diff --git a/internal/grpc/services/gateway/webdavstorageprovider.go b/internal/grpc/services/gateway/webdavstorageprovider.go
index 8d98e8688c..c7cdc94077 100644
--- a/internal/grpc/services/gateway/webdavstorageprovider.go
+++ b/internal/grpc/services/gateway/webdavstorageprovider.go
@@ -252,6 +252,21 @@ func (s *svc) getWebdavEndpoint(ctx context.Context, domain string) (string, err
 	return "", errtypes.NotFound(domain)
 }
 
+func (s *svc) getWebdavHost(ctx context.Context, domain string) (string, error) {
+	meshProvider, err := s.GetInfoByDomain(ctx, &ocmprovider.GetInfoByDomainRequest{
+		Domain: domain,
+	})
+	if err != nil {
+		return "", errors.Wrap(err, "gateway: error calling GetInfoByDomain")
+	}
+	for _, s := range meshProvider.ProviderInfo.Services {
+		if strings.ToLower(s.Endpoint.Type.Name) == "webdav" {
+			return s.Host, nil
+		}
+	}
+	return "", errtypes.NotFound(domain)
+}
+
 func normalize(info *gowebdav.File) *provider.ResourceInfo {
 	return &provider.ResourceInfo{
 		// TODO(ishank011): Add Id, PermissionSet, Owner