diff --git a/lib/adapters/http.js b/lib/adapters/http.js
index 404dd18e..754a15c1 100755
--- a/lib/adapters/http.js
+++ b/lib/adapters/http.js
@@ -57,6 +57,22 @@ const supportedProtocols = platform.protocols.map((protocol) => {
   return protocol + ':';
 });
 
+// Node's WHATWG URL parser returns `username` and `password` percent-encoded.
+// Decode before composing the `auth` option so credentials such as
+// `my%40email.com:pass` are sent as `my@email.com:pass`. Falls back to the
+// original value for malformed input so a bad encoding never throws.
+const decodeURIComponentSafe = (value) => {
+  if (!utils.isString(value)) {
+    return value;
+  }
+
+  try {
+    return decodeURIComponent(value);
+  } catch (error) {
+    return value;
+  }
+};
+
 const flushOnFinish = (stream, [throttled, flush]) => {
   stream.on('end', flush).on('error', flush);
 
@@ -650,8 +666,8 @@ export default isHttpAdapterSupported &&
       }
 
       if (!auth && parsed.username) {
-        const urlUsername = parsed.username;
-        const urlPassword = parsed.password;
+        const urlUsername = decodeURIComponentSafe(parsed.username);
+        const urlPassword = decodeURIComponentSafe(parsed.password);
         auth = urlUsername + ':' + urlPassword;
       }
 
diff --git a/tests/unit/adapters/http.test.js b/tests/unit/adapters/http.test.js
index 70c23bf1..d93c551d 100644
--- a/tests/unit/adapters/http.test.js
+++ b/tests/unit/adapters/http.test.js
@@ -890,6 +890,44 @@ describe('supports http with nodejs', () => {
     }
   });
 
+  it('should decode basic auth credentials from the request URL', async () => {
+    const server = await startHTTPServer(
+      (req, res) => {
+        res.end(req.headers.authorization);
+      },
+      { port: SERVER_PORT }
+    );
+
+    try {
+      const response = await axios.get(
+        `http://my%40email.com:pa%24ss@localhost:${server.address().port}/`
+      );
+      const base64 = Buffer.from('my@email.com:pa$ss', 'utf8').toString('base64');
+      assert.strictEqual(response.data, `Basic ${base64}`);
+    } finally {
+      await stopHTTPServer(server);
+    }
+  });
+
+  it('keeps malformed URL credentials percent-encoding and does not throw', async () => {
+    const server = await startHTTPServer(
+      (req, res) => {
+        res.end(req.headers.authorization);
+      },
+      { port: SERVER_PORT }
+    );
+
+    try {
+      const response = await axios.get(
+        `http://user%:foo%zz@localhost:${server.address().port}/`
+      );
+      const base64 = Buffer.from('user%:foo%zz', 'utf8').toString('base64');
+      assert.strictEqual(response.data, `Basic ${base64}`);
+    } finally {
+      await stopHTTPServer(server);
+    }
+  });
+
   it('should support basic auth with a header', async () => {
     const server = await startHTTPServer(
       (req, res) => {