diff --git a/ElementX/Sources/Other/HTMLParsing/AttributedStringBuilder.swift b/ElementX/Sources/Other/HTMLParsing/AttributedStringBuilder.swift
index af20a106c..cb1ee623c 100644
--- a/ElementX/Sources/Other/HTMLParsing/AttributedStringBuilder.swift
+++ b/ElementX/Sources/Other/HTMLParsing/AttributedStringBuilder.swift
@@ -136,15 +136,15 @@ struct AttributedStringBuilder: AttributedStringBuilderProtocol {
         var matches = MatrixEntityRegex.userIdentifierRegex.matches(in: string, options: [])
         matches.append(contentsOf: MatrixEntityRegex.roomIdentifierRegex.matches(in: string, options: []))
         // As of right now we do not handle event id links in any way so there is no need to add them as links
-//        matches.append(contentsOf: MatrixEntityRegex.eventIdentifierRegex.matches(in: string, options: []))
+        // matches.append(contentsOf: MatrixEntityRegex.eventIdentifierRegex.matches(in: string, options: []))
         matches.append(contentsOf: MatrixEntityRegex.roomAliasRegex.matches(in: string, options: []))
         matches.append(contentsOf: MatrixEntityRegex.linkRegex.matches(in: string, options: []))
-        
         guard matches.count > 0 else {
             return
         }
         
-        matches.forEach { match in
+        // Sort the links by length so the longest one always takes priority
+        matches.sorted { $0.range.length > $1.range.length }.forEach { match in
             guard let matchRange = Range(match.range, in: string) else {
                 return
             }
@@ -161,8 +161,7 @@ struct AttributedStringBuilder: AttributedStringBuilderProtocol {
                 return
             }
             
-            let link = string[matchRange].addingPercentEncoding(withAllowedCharacters: .urlQueryAllowed)
-            attributedString.addAttribute(.link, value: link as Any, range: match.range)
+            attributedString.addAttribute(.link, value: string[matchRange] as Any, range: match.range)
         }
     }
     
diff --git a/UnitTests/Sources/AttributedStringBuilderTests.swift b/UnitTests/Sources/AttributedStringBuilderTests.swift
index 6aa125bc6..acceac215 100644
--- a/UnitTests/Sources/AttributedStringBuilderTests.swift
+++ b/UnitTests/Sources/AttributedStringBuilderTests.swift
@@ -159,25 +159,37 @@ class AttributedStringBuilderTests: XCTestCase {
         XCTAssertNil(attributedString.uiKit.attachment, "iFrame attachments should be removed as they're not included in the allowedHTMLTags array.")
     }
     
+    func testLinkWithFragment() {
+        let string = "https://example.com/#/"
+        checkLinkIn(attributedString: attributedStringBuilder.fromHTML(string), expectedLink: string, expectedRuns: 1)
+        checkLinkIn(attributedString: attributedStringBuilder.fromPlain(string), expectedLink: string, expectedRuns: 1)
+    }
+    
+    func testPermalink() {
+        let string = "https://matrix.to/#/!hello:matrix.org/$world?via=matrix.org"
+        checkLinkIn(attributedString: attributedStringBuilder.fromHTML(string), expectedLink: string, expectedRuns: 1)
+        checkLinkIn(attributedString: attributedStringBuilder.fromPlain(string), expectedLink: string, expectedRuns: 1)
+    }
+    
     func testUserIdLink() {
         let userId = "@user:matrix.org"
         let string = "The user is \(userId)."
-        checkMatrixEntityLinkIn(attributedString: attributedStringBuilder.fromHTML(string), expected: userId)
-        checkMatrixEntityLinkIn(attributedString: attributedStringBuilder.fromPlain(string), expected: userId)
+        checkLinkIn(attributedString: attributedStringBuilder.fromHTML(string), expectedLink: userId, expectedRuns: 3)
+        checkLinkIn(attributedString: attributedStringBuilder.fromPlain(string), expectedLink: userId, expectedRuns: 3)
     }
     
     func testRoomAliasLink() {
         let roomAlias = "#matrix:matrix.org"
         let string = "The room alias is \(roomAlias)."
-        checkMatrixEntityLinkIn(attributedString: attributedStringBuilder.fromHTML(string), expected: roomAlias)
-        checkMatrixEntityLinkIn(attributedString: attributedStringBuilder.fromPlain(string), expected: roomAlias)
+        checkLinkIn(attributedString: attributedStringBuilder.fromHTML(string), expectedLink: roomAlias, expectedRuns: 3)
+        checkLinkIn(attributedString: attributedStringBuilder.fromPlain(string), expectedLink: roomAlias, expectedRuns: 3)
     }
     
     func testRoomIdLink() {
         let roomId = "!roomidentifier:matrix.org"
         let string = "The room is \(roomId)."
-        checkMatrixEntityLinkIn(attributedString: attributedStringBuilder.fromHTML(string), expected: roomId)
-        checkMatrixEntityLinkIn(attributedString: attributedStringBuilder.fromPlain(string), expected: roomId)
+        checkLinkIn(attributedString: attributedStringBuilder.fromHTML(string), expectedLink: roomId, expectedRuns: 3)
+        checkLinkIn(attributedString: attributedStringBuilder.fromPlain(string), expectedLink: roomId, expectedRuns: 3)
     }
 
     // As of right now we do not handle event id links in any way so there is no need to add them as links
@@ -390,16 +402,16 @@ class AttributedStringBuilderTests: XCTestCase {
     
     // MARK: - Private
     
-    private func checkMatrixEntityLinkIn(attributedString: AttributedString?, expected: String) {
+    private func checkLinkIn(attributedString: AttributedString?, expectedLink: String, expectedRuns: Int) {
         guard let attributedString else {
             XCTFail("Could not build the attributed string")
             return
         }
         
-        XCTAssertEqual(attributedString.runs.count, 3)
+        XCTAssertEqual(attributedString.runs.count, expectedRuns)
         
         for run in attributedString.runs where run.link != nil {
-            XCTAssertEqual(run.link?.path, expected)
+            XCTAssertEqual(run.link?.absoluteString, expectedLink)
             return
         }
         
diff --git a/changelog.d/687.bugfix b/changelog.d/687.bugfix
new file mode 100644
index 000000000..220f5618e
--- /dev/null
+++ b/changelog.d/687.bugfix
@@ -0,0 +1 @@
+Fixed incorrect link detection and handling in the timeline
\ No newline at end of file