diff --git a/Cargo.toml b/Cargo.toml
index ec1a8979..caeefefa 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -21,7 +21,7 @@ tokio_io = ["tokio"]
 
 [dependencies]
 byteorder = "^1.3"
-chrono-tz = "0.5"
+chrono-tz = "0.6"
 crossbeam = "0.8.0"
 thiserror = "1.0.20"
 futures-core = "0.3.5"
@@ -33,6 +33,7 @@ pin-project = "1.0.4"
 url="^2"
 uuid = "0.8.1"
 combine = "4.2.3"
+percent-encoding = "2.1.0"
 
 [dependencies.futures-util]
 version = "0.3.12"
diff --git a/src/types/options.rs b/src/types/options.rs
index f2d84c0f..cbd746a3 100644
--- a/src/types/options.rs
+++ b/src/types/options.rs
@@ -14,6 +14,7 @@ use crate::errors::{Error, Result, UrlError};
 use std::fmt::Formatter;
 #[cfg(feature = "tls")]
 use native_tls;
+use percent_encoding::percent_decode;
 use url::Url;
 
 const DEFAULT_MIN_CONNS: usize = 10;
@@ -432,11 +433,11 @@ fn from_url(url_str: &str) -> Result<Options> {
 
     let mut options = Options::default();
 
-    if let Some(username) = get_username_from_url(&url)? {
+    if let Some(username) = get_username_from_url(&url) {
         options.username = username.into();
     }
 
-    if let Some(password) = get_password_from_url(&url)? {
+    if let Some(password) = get_password_from_url(&url) {
         options.password = password.into()
     }
 
@@ -507,7 +508,8 @@ fn parse_param<'a, F, T, E>(
 where
     F: Fn(&str) -> std::result::Result<T, E>,
 {
-    match parse(value.as_ref()) {
+    let source = percent_decode(value.as_bytes()).decode_utf8_lossy();
+    match parse(source.as_ref()) {
         Ok(value) => Ok(value),
         Err(_) => Err(UrlError::InvalidParamValue {
             param: param.into(),
@@ -516,19 +518,19 @@ where
     }
 }
 
-fn get_username_from_url(url: &Url) -> Result<Option<&str>> {
+fn get_username_from_url(url: &Url) -> Option<Cow<'_, str>> {
     let user = url.username();
     if user.is_empty() {
-        return Ok(None);
+        return None;
     }
-    Ok(Some(user))
+    Some(percent_decode(user.as_bytes())
+        .decode_utf8_lossy())
 }
 
-fn get_password_from_url(url: &Url) -> Result<Option<&str>> {
-    match url.password() {
-        None => Ok(None),
-        Some(password) => Ok(Some(password)),
-    }
+fn get_password_from_url(url: &Url) -> Option<Cow<'_, str>> {
+    let password = url.password()?;
+    Some(percent_decode(password.as_bytes())
+        .decode_utf8_lossy())
 }
 
 fn get_database_from_url(url: &Url) -> Result<Option<&str>> {
@@ -653,6 +655,25 @@ mod test {
         );
     }
 
+    #[test]
+    fn test_parse_encoded_creds() {
+        let url = "tcp://user%20%3Cbar%3E:password%20%3Cbar%3E@host1:9001/database?ping_timeout=42ms&keepalive=99s&compression=lz4&connection_timeout=10s";
+        assert_eq!(
+            Options {
+                username: "user <bar>".into(),
+                password: "password <bar>".into(),
+                addr: Url::parse("tcp://user%20%3Cbar%3E:password%20%3Cbar%3E@host1:9001").unwrap(),
+                database: "database".into(),
+                keepalive: Some(Duration::from_secs(99)),
+                ping_timeout: Duration::from_millis(42),
+                connection_timeout: Duration::from_secs(10),
+                compression: true,
+                ..Options::default()
+            },
+            from_url(url).unwrap(),
+        );
+    }
+
     #[test]
     fn test_parse_options() {
         let url = "tcp://username:password@host1:9001/database?ping_timeout=42ms&keepalive=99s&compression=lz4&connection_timeout=10s";