diff --git a/examples/basic/app.js b/examples/basic/app.js
index bafe7cbfb..3140f03ce 100644
--- a/examples/basic/app.js
+++ b/examples/basic/app.js
@@ -40,7 +40,11 @@ new Vue({
           <a>/bar</a>
         </router-link>
         <li><router-link to="/é">/é</router-link></li>
+        <li><router-link to="/é?t=%25ñ">/é?t=%ñ</router-link></li>
+        <li><router-link to="/é#%25ñ">/é#%25ñ</router-link></li>
       </ul>
+      <pre id="query-t">{{ $route.query.t }}</pre>
+      <pre id="hash">{{ $route.hash }}</pre>
       <router-view class="view"></router-view>
     </div>
   `
diff --git a/examples/hash-mode/app.js b/examples/hash-mode/app.js
index f90da3255..b6d3adc66 100644
--- a/examples/hash-mode/app.js
+++ b/examples/hash-mode/app.js
@@ -10,7 +10,7 @@ Vue.use(VueRouter)
 const Home = { template: '<div>home</div>' }
 const Foo = { template: '<div>foo</div>' }
 const Bar = { template: '<div>bar</div>' }
-const Unicode = { template: '<div>unicode</div>' }
+const Unicode = { template: '<div>unicode: {{ $route.params.unicode }}</div>' }
 
 // 3. Create the router
 const router = new VueRouter({
@@ -20,7 +20,8 @@ const router = new VueRouter({
     { path: '/', component: Home }, // all paths are defined without the hash.
     { path: '/foo', component: Foo },
     { path: '/bar', component: Bar },
-    { path: '/é', component: Unicode }
+    { path: '/é', component: Unicode },
+    { path: '/é/:unicode', component: Unicode }
   ]
 })
 
@@ -38,7 +39,12 @@ new Vue({
         <li><router-link to="/bar">/bar</router-link></li>
         <router-link tag="li" to="/bar">/bar</router-link>
         <li><router-link to="/é">/é</router-link></li>
+        <li><router-link to="/é/ñ">/é/ñ</router-link></li>
+        <li><router-link to="/é/ñ?t=%25ñ">/é/ñ?t=%ñ</router-link></li>
+        <li><router-link to="/é/ñ#é">/é/ñ#é</router-link></li>
       </ul>
+      <pre id="query-t">{{ $route.query.t }}</pre>
+      <pre id="hash">{{ $route.hash }}</pre>
       <router-view class="view"></router-view>
     </div>
   `
diff --git a/src/history/hash.js b/src/history/hash.js
index 330f2383c..16c94db0e 100644
--- a/src/history/hash.js
+++ b/src/history/hash.js
@@ -100,9 +100,25 @@ function ensureSlash (): boolean {
 export function getHash (): string {
   // We can't use window.location.hash here because it's not
   // consistent across browsers - Firefox will pre-decode it!
-  const href = window.location.href
+  let href = window.location.href
   const index = href.indexOf('#')
-  return index === -1 ? '' : decodeURI(href.slice(index + 1))
+  // empty path
+  if (index < 0) return ''
+
+  href = href.slice(index + 1)
+  // decode the hash but not the search or hash
+  // as search(query) is already decoded
+  // https://github.com/vuejs/vue-router/issues/2708
+  const searchIndex = href.indexOf('?')
+  if (searchIndex < 0) {
+    const hashIndex = href.indexOf('#')
+    if (hashIndex > -1) href = decodeURI(href.slice(0, hashIndex)) + href.slice(hashIndex)
+    else href = decodeURI(href)
+  } else {
+    if (searchIndex > -1) href = decodeURI(href.slice(0, searchIndex)) + href.slice(searchIndex)
+  }
+
+  return href
 }
 
 function getUrl (path) {
diff --git a/test/e2e/specs/basic.js b/test/e2e/specs/basic.js
index 78b6d8df5..ad2e5c00f 100644
--- a/test/e2e/specs/basic.js
+++ b/test/e2e/specs/basic.js
@@ -3,8 +3,8 @@ module.exports = {
     browser
       .url('http://localhost:8080/basic/')
       .waitForElementVisible('#app', 1000)
-      .assert.count('li', 5)
-      .assert.count('li a', 5)
+      .assert.count('li', 7)
+      .assert.count('li a', 7)
       // assert correct href with base
       .assert.attributeContains('li:nth-child(1) a', 'href', '/basic/')
       .assert.attributeContains('li:nth-child(2) a', 'href', '/basic/foo')
diff --git a/test/e2e/specs/hash-mode.js b/test/e2e/specs/hash-mode.js
index d32d4d0dd..554a17ee3 100644
--- a/test/e2e/specs/hash-mode.js
+++ b/test/e2e/specs/hash-mode.js
@@ -3,12 +3,14 @@ module.exports = {
     browser
       .url('http://localhost:8080/hash-mode/')
       .waitForElementVisible('#app', 1000)
-      .assert.count('li', 5)
-      .assert.count('li a', 4)
+      .assert.count('li', 8)
+      .assert.count('li a', 7)
       .assert.attributeContains('li:nth-child(1) a', 'href', '/hash-mode/#/')
       .assert.attributeContains('li:nth-child(2) a', 'href', '/hash-mode/#/foo')
       .assert.attributeContains('li:nth-child(3) a', 'href', '/hash-mode/#/bar')
       .assert.attributeContains('li:nth-child(5) a', 'href', '/hash-mode/#/%C3%A9')
+      .assert.attributeContains('li:nth-child(6) a', 'href', '/hash-mode/#/%C3%A9/%C3%B1')
+      .assert.attributeContains('li:nth-child(7) a', 'href', '/hash-mode/#/%C3%A9/%C3%B1?t=%25%C3%B1')
       .assert.containsText('.view', 'home')
 
       .click('li:nth-child(2) a')
@@ -31,9 +33,24 @@ module.exports = {
       .url('http://localhost:8080/hash-mode/#/foo')
       .waitForElementVisible('#app', 1000)
       .assert.containsText('.view', 'foo')
+      // direct visit encoded unicode
       .url('http://localhost:8080/hash-mode/#/%C3%A9')
       .waitForElementVisible('#app', 1000)
       .assert.containsText('.view', 'unicode')
+      // direct visit raw unicode
+      .url('http://localhost:8080/hash-mode/#/%C3%A9/%C3%B1')
+      .waitForElementVisible('#app', 1000)
+      .assert.containsText('.view', 'unicode: ñ')
+      // TODO: Doesn't seem to work on PhantomJS
+      // .click('li:nth-child(7)')
+      // .assert.urlEquals('http://localhost:8080/hash-mode/#/%C3%A9/%C3%B1?t=%25')
+      // .assert.containsText('.view', 'unicode: ñ')
+      // .assert.containsText('#query-t', '%')
+      // direct visit
+      .url('http://localhost:8080/hash-mode/#/%C3%A9/%C3%B1?t=%25')
+      .waitForElementVisible('#app', 1000)
+      .assert.containsText('.view', 'unicode: ñ')
+      .assert.containsText('#query-t', '%')
       .end()
   }
 }