diff --git a/packages/gatsby-core-utils/src/__tests__/fetch-remote-file.js b/packages/gatsby-core-utils/src/__tests__/fetch-remote-file.js
index 5cbf985fcce67..ea60474c2c72a 100644
--- a/packages/gatsby-core-utils/src/__tests__/fetch-remote-file.js
+++ b/packages/gatsby-core-utils/src/__tests__/fetch-remote-file.js
@@ -349,7 +349,7 @@ describe(`fetch-remote-file`, () => {
     expect(gotStream).toBeCalledTimes(1)
   })
 
-  it(`downloads and create a jpg file for file with non-ascii filename`, async () => {
+  it(`downloads and create a jpg file for file with non-ascii url`, async () => {
     const filePath = await fetchRemoteFile({
       url: `http://external.com/${encodeURIComponent(`개`)}.jpg`,
       cache,
@@ -362,6 +362,20 @@ describe(`fetch-remote-file`, () => {
     expect(gotStream).toBeCalledTimes(1)
   })
 
+  it(`downloads and create a jpg file for file with non-ascii filename`, async () => {
+    const filePath = await fetchRemoteFile({
+      url: `http://external.com/dog.jpg`,
+      name: `${encodeURIComponent(`개`)}.jpg`,
+      cache,
+    })
+
+    expect(path.basename(filePath)).toBe(`개.jpg`)
+    expect(getFileSize(filePath)).resolves.toBe(
+      await getFileSize(path.join(__dirname, `./fixtures/dog-thumbnail.jpg`))
+    )
+    expect(gotStream).toBeCalledTimes(1)
+  })
+
   it(`downloads and create a jpg file for unknown extension`, async () => {
     const filePath = await fetchRemoteFile({
       url: `http://external.com/dog`,
diff --git a/packages/gatsby-core-utils/src/filename-utils.ts b/packages/gatsby-core-utils/src/filename-utils.ts
index 03cc37d07b613..463a2bea50c70 100644
--- a/packages/gatsby-core-utils/src/filename-utils.ts
+++ b/packages/gatsby-core-utils/src/filename-utils.ts
@@ -52,6 +52,9 @@ export function createFilePath(
   filename: string,
   ext: string
 ): string {
+  directory = decodeURIComponent(directory)
+  filename = decodeURIComponent(filename)
+
   const purgedFileName = filename.replace(filenamePurgeRegex, `-`)
   const shouldAddHash = purgedFileName !== filename