diff --git a/browser/components/extensions/test/xpcshell/test_ext_settings_overrides_search.js b/browser/components/extensions/test/xpcshell/test_ext_settings_overrides_search.js
index 8e41d9d4f34a..e4641f3a8836 100644
--- a/browser/components/extensions/test/xpcshell/test_ext_settings_overrides_search.js
+++ b/browser/components/extensions/test/xpcshell/test_ext_settings_overrides_search.js
@@ -195,3 +195,39 @@ add_task(async function test_extension_post_params() {
 
   await ext1.unload();
 });
+
+add_task(async function test_extension_no_query_params() {
+  const ext1 = ExtensionTestUtils.loadExtension({
+    manifest: {
+      "chrome_settings_overrides": {
+        "search_provider": {
+          "name": "MozSearch",
+          "keyword": "MozSearch",
+          "search_url": "https://example.com/{searchTerms}",
+          "suggest_url": "https://example.com/suggest/{searchTerms}",
+        },
+      },
+    },
+    useAddonManager: "temporary",
+  });
+
+  await ext1.startup();
+  await AddonTestUtils.waitForSearchProviderStartup(ext1);
+
+  let engine = Services.search.getEngineByName("MozSearch");
+  ok(engine, "Engine should exist.");
+
+  const encodedSubmissionURL = engine.getSubmission(kSearchTermIntl).uri.spec;
+  const testSubmissionURL = "https://example.com/" + encodeURIComponent(kSearchTermIntl);
+  equal(encodedSubmissionURL, testSubmissionURL, "Encoded UTF-8 URLs should match");
+
+  const expectedSuggestURL = "https://example.com/suggest/" + kSearchTerm;
+  let submissionSuggest = engine.getSubmission(kSearchTerm, URLTYPE_SUGGEST_JSON);
+  equal(submissionSuggest.uri.spec, expectedSuggestURL, "Suggest URLs should match");
+
+  await ext1.unload();
+  await delay();
+
+  engine = Services.search.getEngineByName("MozSearch");
+  ok(!engine, "Engine should not exist");
+});
diff --git a/toolkit/components/search/SearchService.jsm b/toolkit/components/search/SearchService.jsm
index 317b99207124..dc867f1b69b4 100644
--- a/toolkit/components/search/SearchService.jsm
+++ b/toolkit/components/search/SearchService.jsm
@@ -4057,7 +4057,9 @@ SearchService.prototype = {
       shortName: extension.id.split("@")[0],
       description: extension.manifest.description,
       searchForm: searchProvider.search_form,
-      template: searchProvider.search_url,
+      // AddonManager will sometimes encode the URL via `new URL()`. We want
+      // to ensure we're always dealing with decoded urls.
+      template: decodeURI(searchProvider.search_url),
       searchGetParams: searchProvider.search_url_get_params,
       searchPostParams: searchProvider.search_url_post_params,
       iconURL: searchProvider.favicon_url || preferredIconUrl,
@@ -4065,6 +4067,7 @@ SearchService.prototype = {
       alias: searchProvider.keyword,
       extensionID: extension.id,
       isBuiltin: extension.addonData.builtIn,
+      // suggest_url doesn't currently get encoded.
       suggestURL: searchProvider.suggest_url,
       suggestPostParams: searchProvider.suggest_url_post_params,
       suggestGetParams: searchProvider.suggest_url_get_params,