diff --git a/bitbake/lib/bb/checksum.py b/bitbake/lib/bb/checksum.py
index fb8a77f6ab..4d34baffcc 100644
--- a/bitbake/lib/bb/checksum.py
+++ b/bitbake/lib/bb/checksum.py
@@ -8,6 +8,7 @@
 import glob
 import operator
 import os
+import urllib
 import stat
 import bb.utils
 import logging
@@ -110,10 +111,14 @@ class FileChecksumCache(MultiProcessCache):
 
         checksums = []
         for pth in filelist.split():
-            exist = pth.split(":")[1]
+            spl = pth.split(':')
+            if len(spl) != 2:
+                bb.fatal("found unformatted path in filelist " + pth)
+
+            exist = spl[1]
             if exist == "False":
                 continue
-            pth = pth.split(":")[0]
+            pth = urllib.parse.unquote(spl[0])
             if '*' in pth:
                 # Handle globs
                 for f in glob.glob(pth):
diff --git a/bitbake/lib/bb/fetch2/__init__.py b/bitbake/lib/bb/fetch2/__init__.py
index d37174185a..c19d4b8636 100644
--- a/bitbake/lib/bb/fetch2/__init__.py
+++ b/bitbake/lib/bb/fetch2/__init__.py
@@ -1214,13 +1214,13 @@ def get_checksum_file_list(d):
             paths = ud.method.localpaths(ud, d)
             for f in paths:
                 pth = ud.decodedurl
-                if f.startswith(dl_dir):
+                if pth.startswith(dl_dir):
                     # The local fetcher's behaviour is to return a path under DL_DIR if it couldn't find the file anywhere else
-                    if os.path.exists(f):
+                    if os.path.exists(pth):
                         bb.warn("Getting checksum for %s SRC_URI entry %s: file not found except in DL_DIR" % (d.getVar('PN'), os.path.basename(f)))
                     else:
                         bb.warn("Unable to get checksum for %s SRC_URI entry %s: file could not be found" % (d.getVar('PN'), os.path.basename(f)))
-                filelist.append(f + ":" + str(os.path.exists(f)))
+                filelist.append(f + ":" + str(os.path.exists(pth)))
 
     return " ".join(filelist)
 
diff --git a/meta/classes/base.bbclass b/meta/classes/base.bbclass
index 5f4956a1d3..8e6cf84479 100644
--- a/meta/classes/base.bbclass
+++ b/meta/classes/base.bbclass
@@ -94,6 +94,8 @@ def extra_path_elements(d):
 PATH:prepend = "${@extra_path_elements(d)}"
 
 def get_lic_checksum_file_list(d):
+    import urllib
+
     filelist = []
     lic_files = d.getVar("LIC_FILES_CHKSUM") or ''
     tmpdir = d.getVar("TMPDIR")
@@ -113,7 +115,7 @@ def get_lic_checksum_file_list(d):
             if path[0] == '/':
                 if path.startswith((tmpdir, s, b, workdir)):
                     continue
-                filelist.append(path + ":" + str(os.path.exists(path)))
+                filelist.append(urllib.parse.quote(path) + ":" + str(os.path.exists(path)))
         except bb.fetch.MalformedUrl:
             bb.fatal(d.getVar('PN') + ": LIC_FILES_CHKSUM contains an invalid URL: " + url)
     return " ".join(filelist)
diff --git a/meta/lib/oeqa/selftest/cases/lic_checksum.py b/meta/lib/oeqa/selftest/cases/lic_checksum.py
index 91021ac335..6bdbac3ba2 100644
--- a/meta/lib/oeqa/selftest/cases/lic_checksum.py
+++ b/meta/lib/oeqa/selftest/cases/lic_checksum.py
@@ -4,6 +4,7 @@
 
 import os
 import tempfile
+import urllib
 
 from oeqa.selftest.case import OESelftestTestCase
 from oeqa.utils.commands import bitbake
@@ -11,6 +12,23 @@ from oeqa.utils import CommandError
 
 class LicenseTests(OESelftestTestCase):
 
+    def test_checksum_with_space(self):
+        bitbake_cmd = '-c populate_lic emptytest'
+
+        lic_file, lic_path = tempfile.mkstemp(" -afterspace")
+        os.close(lic_file)
+        #self.track_for_cleanup(lic_path)
+
+        self.write_config("INHERIT:remove = \"report-error\"")
+
+        self.write_recipeinc('emptytest', """
+INHIBIT_DEFAULT_DEPS = "1"
+LIC_FILES_CHKSUM = "file://%s;md5=d41d8cd98f00b204e9800998ecf8427e"
+SRC_URI = "file://%s;md5=d41d8cd98f00b204e9800998ecf8427e"
+""" % (urllib.parse.quote(lic_path), urllib.parse.quote(lic_path)))
+        result = bitbake(bitbake_cmd)
+
+
     # Verify that changing a license file that has an absolute path causes
     # the license qa to fail due to a mismatched md5sum.
     def test_nonmatching_checksum(self):