diff --git a/tsc/internal/ls/documenthighlights.go b/tsc/internal/ls/documenthighlights.go
index 47fe0092c7e8b..d0eab3b93d1a3 100644
--- a/tsc/internal/ls/documenthighlights.go
+++ b/tsc/internal/ls/documenthighlights.go
@@ -23,11 +23,13 @@ func (l *LanguageService) ProvideDocumentHighlights(ctx context.Context, documen
 	if err != nil {
 		return lsproto.DocumentHighlightsOrNull{}, err
 	}
-	// Extract highlights for the current file only.
+	// Extract highlights for the current file only. Compare file names rather than
+	// URI strings, since the client may encode the URI differently than we do.
+	fileName := documentUri.FileName()
 	var documentHighlights []*lsproto.DocumentHighlight
 	if result.MultiDocumentHighlights != nil {
 		for _, mh := range *result.MultiDocumentHighlights {
-			if mh.Uri == documentUri {
+			if mh.Uri.FileName() == fileName {
 				documentHighlights = append(documentHighlights, mh.Highlights...)
 			}
 		}
diff --git a/tsc/internal/lsp/server_documenthighlight_test.go b/tsc/internal/lsp/server_documenthighlight_test.go
new file mode 100644
index 0000000000000..43c54a7b482da
--- /dev/null
+++ b/tsc/internal/lsp/server_documenthighlight_test.go
@@ -0,0 +1,64 @@
+package lsp_test
+
+import (
+	"context"
+	"io"
+	"testing"
+
+	"github.com/microsoft/TypeScript/tsc/internal/bundled"
+	"github.com/microsoft/TypeScript/tsc/internal/lsp"
+	"github.com/microsoft/TypeScript/tsc/internal/lsp/lsproto"
+	"github.com/microsoft/TypeScript/tsc/internal/testutil/lsptestutil"
+	"github.com/microsoft/TypeScript/tsc/internal/tspath"
+	"github.com/microsoft/TypeScript/tsc/internal/vfs/vfstest"
+	"gotest.tools/v3/assert"
+)
+
+// TestDocumentHighlightUnencodedURI reproduces #64758: a client may send a URI
+// with characters such as '@' left unencoded, while the server builds result
+// URIs with them percent-encoded. Document highlights for the requested file
+// must still be returned.
+func TestDocumentHighlightUnencodedURI(t *testing.T) {
+	t.Parallel()
+	if !bundled.Embedded {
+		t.Skip("bundled files are not embedded")
+	}
+
+	files := map[string]string{
+		"/home/a@b/proj/tsconfig.json": `{}`,
+		"/home/a@b/proj/x.ts":          "const foo = 1;\nconsole.log(foo);\nconsole.log(foo);\n",
+	}
+	fs := bundled.WrapFS(vfstest.FromMap(files, tspath.CaseSensitive))
+
+	onServerRequest := func(_ context.Context, req *lsproto.RequestMessage) *lsproto.ResponseMessage {
+		if req.Method == lsproto.MethodClientRegisterCapability || req.Method == lsproto.MethodClientUnregisterCapability {
+			return &lsproto.ResponseMessage{ID: req.ID, JSONRPC: req.JSONRPC, Result: lsproto.Null{}}
+		}
+		return nil
+	}
+
+	client, closeClient := lsptestutil.NewLSPClient(t, lsp.ServerOptions{
+		Err: io.Discard, Cwd: "/home/a@b/proj", FS: fs, DefaultLibraryPath: bundled.LibPath(),
+	}, onServerRequest)
+	t.Cleanup(func() { _ = closeClient() })
+
+	initMsg, _, ok := client.SendRequest(t, lsproto.InitializeInfo, &lsproto.InitializeParams{
+		Capabilities: &lsproto.ClientCapabilities{},
+	})
+	assert.Assert(t, ok && initMsg.AsResponse().Error == nil, "Initialize failed")
+	client.SendNotification(t, lsproto.InitializedInfo, &lsproto.InitializedParams{})
+	<-client.Server.InitComplete()
+
+	uri := lsproto.DocumentUri("file:///home/a@b/proj/x.ts")
+	client.SendNotification(t, lsproto.TextDocumentDidOpenInfo, &lsproto.DidOpenTextDocumentParams{
+		TextDocument: &lsproto.TextDocumentItem{Uri: uri, LanguageId: "typescript", Text: files["/home/a@b/proj/x.ts"]},
+	})
+
+	msg, resp, ok := client.SendRequest(t, lsproto.TextDocumentDocumentHighlightInfo, &lsproto.DocumentHighlightParams{
+		TextDocument: lsproto.TextDocumentIdentifier{Uri: uri},
+		Position:     lsproto.Position{Line: 0, Character: 7},
+	})
+	assert.Assert(t, ok && msg.AsResponse().Error == nil, "Document highlight request failed")
+	assert.Assert(t, resp.DocumentHighlights != nil)
+	assert.Equal(t, len(*resp.DocumentHighlights), 3)
+}