diff --git a/cli/tools/installer.rs b/cli/tools/installer.rs
index 64324047439d0e..909c06f0b17afd 100644
--- a/cli/tools/installer.rs
+++ b/cli/tools/installer.rs
@@ -54,7 +54,11 @@ fn generate_executable_file(
   let args: Vec<String> = args.iter().map(|c| format!("\"{}\"", c)).collect();
   let template = format!(
     "% generated by deno install %\n@deno.exe {} %*\n",
-    args.join(" ")
+    args
+      .iter()
+      .map(|arg| arg.replace("%", "%%"))
+      .collect::<Vec<_>>()
+      .join(" ")
   );
   let mut file = File::create(&file_path)?;
   file.write_all(template.as_bytes())?;
@@ -328,6 +332,7 @@ fn is_in_path(dir: &PathBuf) -> bool {
 #[cfg(test)]
 mod tests {
   use super::*;
+  use std::process::Command;
   use std::sync::Mutex;
   use tempfile::TempDir;
 
@@ -832,4 +837,35 @@ mod tests {
       ));
     }
   }
+
+  #[test]
+  fn install_unicode() {
+    let temp_dir = TempDir::new().expect("tempdir fail");
+    let bin_dir = temp_dir.path().join("bin");
+    std::fs::create_dir(&bin_dir).unwrap();
+    let unicode_dir = temp_dir.path().join("Magnús");
+    std::fs::create_dir(&unicode_dir).unwrap();
+    let local_module = unicode_dir.join("echo_server.ts");
+    let local_module_str = local_module.to_string_lossy();
+    std::fs::write(&local_module, "// Some JavaScript I guess").unwrap();
+
+    install(
+      Flags::default(),
+      &local_module_str,
+      vec![],
+      Some("echo_test".to_string()),
+      Some(temp_dir.path().to_path_buf()),
+      false,
+    )
+    .expect("Install failed");
+
+    let mut file_path = bin_dir.join("echo_test");
+    if cfg!(windows) {
+      file_path = file_path.with_extension("cmd");
+    }
+
+    // We need to actually run it to make sure the URL is interpreted correctly
+    let status = Command::new(file_path).spawn().unwrap().wait().unwrap();
+    assert!(status.success());
+  }
 }