diff --git a/CHANGELOG.md b/CHANGELOG.md
index 92e8296..751777f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -11,6 +11,11 @@ format and uses semantic versioning when versioned releases are published.
 
 - Initial project setup.
 
+### Fixed
+
+- Decode Git-quoted modification and rename paths so scans, path patterns, and
+  reports use the actual filename.
+
 ## Release Links
 
 - Unreleased:
diff --git a/src/commands.test.ts b/src/commands.test.ts
index 2b045c7..9c55b88 100644
--- a/src/commands.test.ts
+++ b/src/commands.test.ts
@@ -1,4 +1,5 @@
-import { mkdtemp, rm } from "node:fs/promises";
+import { execFileSync } from "node:child_process";
+import { mkdir, mkdtemp, readFile, rename, rm, writeFile } from "node:fs/promises";
 import { tmpdir } from "node:os";
 import { join } from "node:path";
 import { test } from "node:test";
@@ -17,3 +18,54 @@ test("runCommand scans a fixture diff", async () => {
     await rm(dir, { recursive: true, force: true });
   }
 });
+
+test("runCommand reports logical paths from a real Git diff", async () => {
+  const dir = await mkdtemp(join(tmpdir(), "diffbudget-git-paths-"));
+  const tabPath = "src/tab\tname.ts";
+  const renamedPath = "test/renamed é file.test.ts";
+  const git = (args: string[]) => execFileSync("git", args, { cwd: dir, encoding: "utf8" });
+
+  try {
+    git(["init", "--quiet"]);
+    git(["config", "user.name", "DiffBudget Test"]);
+    git(["config", "user.email", "test@example.com"]);
+    await mkdir(join(dir, "src"));
+    await mkdir(join(dir, "test"));
+    await writeFile(join(dir, tabPath), "before\n");
+    await writeFile(join(dir, "old name.txt"), "rename me\n");
+    await writeFile(join(dir, "deleted.txt"), "remove me\n");
+    git(["add", "."]);
+    git(["commit", "--quiet", "-m", "base"]);
+
+    await writeFile(join(dir, tabPath), "after\n");
+    await writeFile(join(dir, "added.txt"), "new\n");
+    await writeFile(join(dir, "binary.dat"), Uint8Array.from([0, 1, 2, 3]));
+    await rm(join(dir, "deleted.txt"));
+    await rename(join(dir, "old name.txt"), join(dir, renamedPath));
+    git(["add", "-A"]);
+    git(["commit", "--quiet", "-m", "change"]);
+
+    const result = await runCommand(parseArgs([
+      "scan",
+      "--base", "HEAD~1",
+      "--target", "HEAD",
+      "--output", join(dir, "report"),
+      "--format", "json"
+    ]), dir);
+    const report = JSON.parse(await readFile(join(dir, "report", "diffbudget-report.json"), "utf8")) as {
+      files: Array<{ file: { path: string; oldPath?: string; status: string; additions: number; deletions: number } }>;
+    };
+
+    assert.equal(result.code, 0);
+    const files = new Map(report.files.map(({ file }) => [file.path, file]));
+    assert.deepEqual([...files.keys()].sort(), ["added.txt", "binary.dat", "deleted.txt", tabPath, renamedPath].sort());
+    assert.deepEqual(files.get("added.txt"), { path: "added.txt", status: "added", additions: 1, deletions: 0 });
+    assert.deepEqual(files.get("binary.dat"), { path: "binary.dat", status: "binary", additions: 0, deletions: 0, binary: true });
+    assert.deepEqual(files.get("deleted.txt"), { path: "deleted.txt", status: "deleted", additions: 0, deletions: 1 });
+    assert.deepEqual(files.get(tabPath), { path: tabPath, status: "modified", additions: 1, deletions: 1 });
+    assert.equal(files.get(renamedPath)?.status, "renamed");
+    assert.equal(files.get(renamedPath)?.oldPath, "old name.txt");
+  } finally {
+    await rm(dir, { recursive: true, force: true });
+  }
+});
diff --git a/src/diffParser.test.ts b/src/diffParser.test.ts
index 9e7a3f2..9669ce9 100644
--- a/src/diffParser.test.ts
+++ b/src/diffParser.test.ts
@@ -12,3 +12,54 @@ test("parseUnifiedDiff extracts paths and line counts", () => {
   assert.equal(changes[0]?.deletions, 1);
   assert.equal(changes[2]?.status, "added");
 });
+
+test("parseUnifiedDiff decodes Git-quoted modification paths", () => {
+  const diff = [
+    String.raw`diff --git "a/tab\tquote\"slash\\-\303\251.txt" "b/tab\tquote\"slash\\-\303\251.txt"`,
+    "index 1234567..89abcde 100644",
+    String.raw`--- "a/tab\tquote\"slash\\-\303\251.txt"`,
+    String.raw`+++ "b/tab\tquote\"slash\\-\303\251.txt"`,
+    "@@ -1 +1 @@",
+    "-before",
+    "+after"
+  ].join("\n");
+
+  assert.deepEqual(parseUnifiedDiff(diff), [{
+    path: "tab\tquote\"slash\\-é.txt",
+    status: "modified",
+    additions: 1,
+    deletions: 1
+  }]);
+});
+
+test("parseUnifiedDiff preserves ordinary spaces and decodes quoted renames", () => {
+  const diff = [
+    "diff --git a/ordinary space.txt b/ordinary space.txt",
+    "index 1234567..89abcde 100644",
+    "--- a/ordinary space.txt",
+    "+++ b/ordinary space.txt",
+    "@@ -1 +1 @@",
+    "-before",
+    "+after",
+    String.raw`diff --git "a/old\tname.txt" "b/new\nname.txt"`,
+    "similarity index 100%",
+    String.raw`rename from "old\tname.txt"`,
+    String.raw`rename to "new\nname.txt"`
+  ].join("\n");
+
+  assert.deepEqual(parseUnifiedDiff(diff), [
+    {
+      path: "ordinary space.txt",
+      status: "modified",
+      additions: 1,
+      deletions: 1
+    },
+    {
+      path: "new\nname.txt",
+      oldPath: "old\tname.txt",
+      status: "renamed",
+      additions: 0,
+      deletions: 0
+    }
+  ]);
+});
diff --git a/src/diffParser.ts b/src/diffParser.ts
index 6a9a001..73fb953 100644
--- a/src/diffParser.ts
+++ b/src/diffParser.ts
@@ -14,14 +14,83 @@ function stripPrefix(path: string): string {
   return path.replace(/^a\//, "").replace(/^b\//, "");
 }
 
+const escapeBytes: Record<string, number> = {
+  a: 0x07,
+  b: 0x08,
+  t: 0x09,
+  n: 0x0a,
+  v: 0x0b,
+  f: 0x0c,
+  r: 0x0d,
+  "\"": 0x22,
+  "\\": 0x5c
+};
+
+function readQuotedPath(input: string, start = 0): { path: string; end: number } | undefined {
+  if (input[start] !== "\"") return undefined;
+
+  const bytes: number[] = [];
+  const encoder = new TextEncoder();
+  let index = start + 1;
+
+  while (index < input.length) {
+    const character = input[index];
+    if (character === "\"") {
+      return { path: new TextDecoder().decode(Uint8Array.from(bytes)), end: index + 1 };
+    }
+    if (character !== "\\") {
+      const codePoint = input.codePointAt(index);
+      if (codePoint === undefined) return undefined;
+      const literal = String.fromCodePoint(codePoint);
+      bytes.push(...encoder.encode(literal));
+      index += literal.length;
+      continue;
+    }
+
+    index += 1;
+    const escaped = input[index];
+    if (escaped === undefined) return undefined;
+    if (/[0-7]/.test(escaped)) {
+      const octal = input.slice(index).match(/^[0-7]{1,3}/)?.[0];
+      if (!octal) return undefined;
+      bytes.push(Number.parseInt(octal, 8));
+      index += octal.length;
+      continue;
+    }
+    bytes.push(escapeBytes[escaped] ?? escaped.charCodeAt(0));
+    index += 1;
+  }
+
+  return undefined;
+}
+
+function decodeGitPath(path: string): string {
+  const quoted = readQuotedPath(path);
+  return quoted && quoted.end === path.length ? quoted.path : path;
+}
+
+function pathFromDiffHeader(line: string): string {
+  const header = line.slice("diff --git ".length);
+  if (header.startsWith("\"")) {
+    const oldPath = readQuotedPath(header);
+    if (oldPath) {
+      const nextStart = oldPath.end + (header[oldPath.end] === " " ? 1 : 0);
+      const newPath = readQuotedPath(header, nextStart);
+      if (newPath && newPath.end === header.length) return newPath.path;
+    }
+  }
+
+  const match = /^a\/(.*) b\/(.*)$/.exec(header);
+  return match ? match[2] : header.trim();
+}
+
 export function parseUnifiedDiff(text: string): FileChange[] {
   const byPath = new Map<string, FileChange>();
   let current: FileChange | undefined;
 
   for (const line of text.split(/\r?\n/)) {
     if (line.startsWith("diff --git ")) {
-      const match = /^diff --git a\/(.*) b\/(.*)$/.exec(line);
-      const path = match ? match[2] : line.slice("diff --git ".length).trim();
+      const path = pathFromDiffHeader(line);
       current = emptyChange(stripPrefix(path));
       byPath.set(current.path, current);
       continue;
@@ -32,12 +101,12 @@ export function parseUnifiedDiff(text: string): FileChange[] {
       continue;
     }
     if (line.startsWith("rename from ")) {
-      current.oldPath = line.slice("rename from ".length).trim();
+      current.oldPath = decodeGitPath(line.slice("rename from ".length).trim());
       current.status = "renamed";
       continue;
     }
     if (line.startsWith("rename to ")) {
-      const nextPath = line.slice("rename to ".length).trim();
+      const nextPath = decodeGitPath(line.slice("rename to ".length).trim());
       byPath.delete(current.path);
       current.path = nextPath;
       current.status = "renamed";