diff --git a/fixtures/fragments/file1.md b/fixtures/fragments/file1.md
index fb3642a..55f2498 100644
--- a/fixtures/fragments/file1.md
+++ b/fixtures/fragments/file1.md
@@ -40,3 +40,5 @@ Therefore we put the test into a code block for now to prevent false positives.
 # Kebab Case Fragment
 
 [Link to another file type](empty_file#fragment)
+
+##### Lets wear a hat: être
diff --git a/fixtures/fragments/file2.md b/fixtures/fragments/file2.md
index 76ac82e..643aeee 100644
--- a/fixtures/fragments/file2.md
+++ b/fixtures/fragments/file2.md
@@ -5,3 +5,6 @@ This is a test file for the fragment loader.
 ### Some other heading with custom id {#custom-id}
 
 #### Fragment 1
+
+[hats](file1.md#lets-wear-a-hat-être)
+
diff --git a/lychee-bin/tests/cli.rs b/lychee-bin/tests/cli.rs
index 171a4b4..cbd5c96 100644
--- a/lychee-bin/tests/cli.rs
+++ b/lychee-bin/tests/cli.rs
@@ -1440,6 +1440,9 @@ mod cli {
             .stderr(contains("fixtures/fragments/file1.md#missing-fragment"))
             .stderr(contains("fixtures/fragments/file2.md#fragment-1"))
             .stderr(contains("fixtures/fragments/file1.md#kebab-case-fragment"))
+            .stderr(contains(
+                "fixtures/fragments/file1.md#lets-wear-a-hat-%C3%AAtre",
+            ))
             .stderr(contains("fixtures/fragments/file2.md#missing-fragment"))
             .stderr(contains("fixtures/fragments/empty_file#fragment"))
             .stderr(contains("fixtures/fragments/file.html#a-word"))
@@ -1448,8 +1451,8 @@ mod cli {
             .stderr(contains(
                 "fixtures/fragments/file1.md#kebab-case-fragment-1",
             ))
-            .stdout(contains("13 Total"))
-            .stdout(contains("10 OK"))
+            .stdout(contains("14 Total"))
+            .stdout(contains("11 OK"))
             // 3 failures because of missing fragments
             .stdout(contains("3 Errors"));
     }
diff --git a/lychee-lib/src/utils/fragment_checker.rs b/lychee-lib/src/utils/fragment_checker.rs
index 6b49cf7..57016e1 100644
--- a/lychee-lib/src/utils/fragment_checker.rs
+++ b/lychee-lib/src/utils/fragment_checker.rs
@@ -9,6 +9,7 @@ use crate::{
     types::FileType,
     Result,
 };
+use percent_encoding::percent_decode_str;
 use tokio::{fs, sync::Mutex};
 use url::Url;
 
@@ -46,6 +47,7 @@ impl FragmentChecker {
         let Some(fragment) = url.fragment() else {
             return Ok(true);
         };
+        let fragment = percent_decode_str(fragment).decode_utf8()?;
         let url_without_frag = Self::remove_fragment(url.clone());
 
         let extractor = match FileType::from(path) {
@@ -57,9 +59,9 @@ impl FragmentChecker {
             Entry::Vacant(entry) => {
                 let content = fs::read_to_string(path).await?;
                 let file_frags = extractor(&content);
-                Ok(entry.insert(file_frags).contains(fragment))
+                Ok(entry.insert(file_frags).contains(&fragment as &str))
             }
-            Entry::Occupied(entry) => Ok(entry.get().contains(fragment)),
+            Entry::Occupied(entry) => Ok(entry.get().contains(&fragment as &str)),
         }
     }