diff --git a/fastmcp_slim/fastmcp/resources/template.py b/fastmcp_slim/fastmcp/resources/template.py
index 919c43f8c..972cb9f4e 100644
--- a/fastmcp_slim/fastmcp/resources/template.py
+++ b/fastmcp_slim/fastmcp/resources/template.py
@@ -125,17 +125,25 @@ def expand_uri_template(uri_template: str, params: dict[str, Any]) -> str:
     """
     result = uri_template
 
-    # Replace {name} and {name*} path placeholders.
+    # Replace {name} and {name*} path placeholders, percent-encoding the
+    # substituted values so the result round-trips through match_uri_template
+    # (which unquotes captured groups). Simple {name} placeholders match a
+    # single segment ([^/]+), so reserved characters including "/" are encoded;
+    # wildcard {name*} placeholders may span segments, so "/" is preserved.
+    #
     # Params use underscored keys (e.g. user_id) but templates may use
     # hyphens (e.g. {user-id}), so try both forms.
     for key, value in params.items():
         value_str = str(value)
-        result = result.replace(f"{{{key}}}", value_str)
-        result = result.replace(f"{{{key}*}}", value_str)
+        simple = quote(value_str, safe="")
+        wildcard = quote(value_str, safe="/")
+        forms = [key]
         hyphenated = key.replace("_", "-")
         if hyphenated != key:
-            result = result.replace(f"{{{hyphenated}}}", value_str)
-            result = result.replace(f"{{{hyphenated}*}}", value_str)
+            forms.append(hyphenated)
+        for form in forms:
+            result = result.replace(f"{{{form}}}", simple)
+            result = result.replace(f"{{{form}*}}", wildcard)
 
     # Expand {?param1,param2,...} query parameter blocks
     def _expand_query_block(match: re.Match[str]) -> str:
diff --git a/fastmcp_slim/fastmcp/server/providers/proxy.py b/fastmcp_slim/fastmcp/server/providers/proxy.py
index f5f160194..1ff4db22e 100644
--- a/fastmcp_slim/fastmcp/server/providers/proxy.py
+++ b/fastmcp_slim/fastmcp/server/providers/proxy.py
@@ -12,7 +12,6 @@ import inspect
 import time
 from collections.abc import Awaitable, Callable, Sequence
 from typing import TYPE_CHECKING, Any, cast
-from urllib.parse import quote
 
 import anyio
 import httpx
@@ -43,7 +42,7 @@ from fastmcp.prompts import Message, Prompt, PromptResult
 from fastmcp.prompts.base import PromptArgument
 from fastmcp.resources import Resource, ResourceTemplate
 from fastmcp.resources.base import ResourceContent, ResourceResult
-from fastmcp.resources.template import expand_uri_template, extract_query_params
+from fastmcp.resources.template import expand_uri_template
 from fastmcp.server.context import Context
 from fastmcp.server.dependencies import get_context
 from fastmcp.server.middleware import CallNext, Middleware, MiddlewareContext
@@ -393,18 +392,10 @@ class ProxyTemplate(ResourceTemplate):
     ) -> ProxyResource:
         """Create a resource from the template by calling the remote server."""
         # don't use the provided uri, because it may not be the same as the
-        # uri_template on the remote server.
-        # quote params to ensure they are valid for the uri_template
+        # uri_template on the remote server. expand_uri_template percent-encodes
+        # path and query values so the backend URI round-trips correctly.
         backend_template = self._backend_uri_template or self.uri_template
-        # Normalize to underscored keys to match how match_uri_template normalizes incoming params
-        query_param_names = {
-            p.replace("-", "_") for p in extract_query_params(backend_template)
-        }
-        quoted_params = {
-            k: (v if k in query_param_names else quote(str(v), safe=""))
-            for k, v in params.items()
-        }
-        parameterized_uri = expand_uri_template(backend_template, quoted_params)
+        parameterized_uri = expand_uri_template(backend_template, params)
         client = await self._get_client()
         async with client:
             result = await client.read_resource(parameterized_uri)
diff --git a/loq.toml b/loq.toml
index 18f31e50f..654c59997 100644
--- a/loq.toml
+++ b/loq.toml
@@ -42,6 +42,10 @@ max_lines = 1096
 path = "fastmcp_slim/fastmcp/tools/tool_transform.py"
 max_lines = 1004
 
+[[rules]]
+path = "tests/resources/test_resource_template.py"
+max_lines = 1016
+
 [[rules]]
 path = "tests/server/providers/openapi/test_openapi_features.py"
 max_lines = 1029
diff --git a/tests/resources/test_resource_template.py b/tests/resources/test_resource_template.py
index 174b81bea..d4238cd94 100644
--- a/tests/resources/test_resource_template.py
+++ b/tests/resources/test_resource_template.py
@@ -951,6 +951,30 @@ class TestExpandUriTemplate:
         result = expand_uri_template("test://{x}", {"x": "foo", "unused": "bar"})
         assert result == "test://foo"
 
+    @pytest.mark.parametrize(
+        "template, params, expected",
+        [
+            # Simple {var} matches a single segment, so "/" must be encoded.
+            (
+                "data://{path}/info",
+                {"path": "hello/world"},
+                "data://hello%2Fworld/info",
+            ),
+            ("test://{x}", {"x": "a b"}, "test://a%20b"),
+            ("test://{x}", {"x": "a?b"}, "test://a%3Fb"),
+            ("test://{x}", {"x": "a#b"}, "test://a%23b"),
+            # Wildcard {var*} may span segments, so "/" is preserved but other
+            # reserved characters are still encoded.
+            ("test://{path*}", {"path": "a/b/c"}, "test://a/b/c"),
+            ("test://{path*}", {"path": "a b/c"}, "test://a%20b/c"),
+        ],
+    )
+    def test_expand_encodes_reserved_characters(
+        self, template: str, params: dict[str, str], expected: str
+    ):
+        """Path values are percent-encoded so the result round-trips through match."""
+        assert expand_uri_template(template, params) == expected
+
 
 class TestMatchExpandRoundTrip:
     """match_uri_template and expand_uri_template must agree on the template grammar."""
@@ -972,3 +996,21 @@ class TestMatchExpandRoundTrip:
         params = match_uri_template(uri, template)
         assert params is not None
         assert expand_uri_template(template, params) == uri
+
+    @pytest.mark.parametrize(
+        "template, params",
+        [
+            ("data://{path}/info", {"path": "hello/world"}),
+            ("test://{x}", {"x": "a b c"}),
+            ("test://{x}", {"x": "100%"}),
+            ("test://{x}/{y}", {"x": "a/b", "y": "c?d"}),
+            ("test://{path*}", {"path": "a/b/c"}),
+            ("test://pre/{rest*}", {"rest": "x y/z"}),
+        ],
+    )
+    def test_match_then_expand_recovers_params(
+        self, template: str, params: dict[str, str]
+    ):
+        """Expanding params and matching them back reproduces the original values."""
+        uri = expand_uri_template(template, params)
+        assert match_uri_template(uri, template) == params