diff --git a/README.md b/README.md
index b5cd13f..6a4a583 100644
--- a/README.md
+++ b/README.md
@@ -14,7 +14,7 @@ build.gradle snippet to use ManifestClasspath plugin
 ##### Build script snippet for plugins DSL for Gradle 2.1 and later
 ```
 plugins {
-  id "com.github.ManifestClasspath" version "0.1.0-RELEASE"
+  id "com.github.ManifestClasspath" version "0.2.0-RELEASE"
 }
 ```
 ##### Build script snippet for use in older Gradle versions or where dynamic configuration is required
@@ -26,7 +26,7 @@ buildscript {
     }
   }
   dependencies {
-    classpath "gradle.plugin.com.github.viswaramamoorthy:gradle-util-plugins:0.1.0-RELEASE"
+    classpath "gradle.plugin.com.github.viswaramamoorthy:gradle-util-plugins:0.2.0-RELEASE"
   }
 }
 
diff --git a/build.gradle b/build.gradle
index 514bc32..163e435 100644
--- a/build.gradle
+++ b/build.gradle
@@ -20,7 +20,7 @@ apply plugin: 'io.codearte.nexus-staging'
 apply plugin: 'com.gradle.plugin-publish'
 
 group = 'com.github.viswaramamoorthy'
-version = '0.1.0-RELEASE'
+version = '0.2.0-RELEASE'
 
 sourceCompatibility = 1.8
 
diff --git a/src/main/groovy/vr/util/ManifestUtil.groovy b/src/main/groovy/vr/util/ManifestUtil.groovy
index 5923c0c..634e6f9 100644
--- a/src/main/groovy/vr/util/ManifestUtil.groovy
+++ b/src/main/groovy/vr/util/ManifestUtil.groovy
@@ -34,11 +34,23 @@ class ManifestUtil
         if (!fileCollection)
             return
         def classPathString = fileCollection.files.collect {
-                                it.toURL().toString()
+                                toClassPathEntry(it)
                               }.join(' ')
         createManifestJar(jarFile, manifestWithClasspath(classPathString))
     }
 
+    /**
+     * Convert a file to its URL, with any spaces in the path replaced by {@ %20} so that directories
+     * containing spaces in their names in the classpath will be properly processed when running.
+     *
+     * @param element file to convert to string for inclusion in classpath
+     * @return classpath string referencing given file, as described
+     */
+    private static String toClassPathEntry(File element) {
+        String path = element.toURL().toString()
+        return path.replaceAll(' ', '%20')
+    }
+
     private static def createManifestJar(def jarFile, def manifest = null) throws IOException {
         def jarOutputStream