diff --git a/httpie/cli/argparser.py b/httpie/cli/argparser.py
index 9bf09b3b73..ddbb865842 100644
--- a/httpie/cli/argparser.py
+++ b/httpie/cli/argparser.py
@@ -5,7 +5,7 @@
 import sys
 from argparse import RawDescriptionHelpFormatter
 from textwrap import dedent
-from urllib.parse import urlsplit
+from urllib.parse import unquote, urlsplit
 
 from requests.utils import get_netrc_auth
 
@@ -289,8 +289,8 @@ def _process_auth(self):
         if self.args.auth is None and not auth_type_set:
             if url.username is not None:
                 # Handle http://username:password@hostname/
-                username = url.username
-                password = url.password or ''
+                username = unquote(url.username)
+                password = unquote(url.password or '')
                 self.args.auth = AuthCredentials(
                     key=username,
                     value=password,