diff --git a/src/urlMatcherFactory.js b/src/urlMatcherFactory.js
index a155d1975..ec9d4023d 100644
--- a/src/urlMatcherFactory.js
+++ b/src/urlMatcherFactory.js
@@ -561,8 +561,8 @@ function $UrlMatcherFactory() {
 
   var isCaseInsensitive = false, isStrictMode = true, defaultSquashPolicy = false;
 
-  function valToString(val) { return val != null ? val.toString().replace("/", "%2F") : val; }
-  function valFromString(val) { return val != null ? val.toString().replace("%2F", "/") : val; }
+  function valToString(val) { return val != null ? val.toString().replace(/\//g, "%2F") : val; }
+  function valFromString(val) { return val != null ? val.toString().replace(/%2F/g, "/") : val; }
   function angularEquals(left, right) { return angular.equals(left, right); }
 //  TODO: in 1.0, make string .is() return false if value is undefined by default.
 //  function regexpMatches(val) { /*jshint validthis:true */ return isDefined(val) && this.pattern.test(val); }
diff --git a/test/urlMatcherFactorySpec.js b/test/urlMatcherFactorySpec.js
index d92e4f462..8a43a4c24 100644
--- a/test/urlMatcherFactorySpec.js
+++ b/test/urlMatcherFactorySpec.js
@@ -61,6 +61,12 @@ describe("UrlMatcher", function () {
     expect(matcher.format(array)).toBe('/?foo=bar&foo=baz');
   });
 
+  it("should encode and decode slashes in parameter values", function () {
+    var matcher = new UrlMatcher('/:foo');
+    expect(matcher.format({ foo: "/" })).toBe('/%252F');
+    expect(matcher.format({ foo: "//" })).toBe('/%252F%252F');
+  });
+
   describe("snake-case parameters", function() {
     it("should match if properly formatted", function() {
       var matcher = new UrlMatcher('/users/?from&to&snake-case&snake-case-triple');