diff --git a/Cargo.lock b/Cargo.lock
index ce4caf8fd77..aa3f9849b28 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -896,9 +896,9 @@ dependencies = [
 
 [[package]]
 name = "data-url"
-version = "0.2.0"
+version = "0.3.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "8d7439c3735f405729d52c3fbbe4de140eaf938a1fe47d227c27f8254d4302a5"
+checksum = "5c297a1c74b71ae29df00c3e22dd9534821d60eb9af5a0192823fa2acea70c2a"
 
 [[package]]
 name = "derivative"
@@ -4203,6 +4203,7 @@ dependencies = [
  "aes-gcm",
  "brotli",
  "ctor",
+ "data-url",
  "dunce",
  "getrandom 0.2.12",
  "glob",
diff --git a/core/tauri-runtime-wry/Cargo.toml b/core/tauri-runtime-wry/Cargo.toml
index 136e6df35e0..e36d1d4bbc4 100644
--- a/core/tauri-runtime-wry/Cargo.toml
+++ b/core/tauri-runtime-wry/Cargo.toml
@@ -21,6 +21,7 @@ rand = "0.8"
 raw-window-handle = "0.5"
 tracing = { version = "0.1", optional = true }
 arboard = { version = "3", optional = true }
+percent-encoding = "2.1"
 
 [target."cfg(windows)".dependencies]
 webview2-com = "0.19.1"
@@ -32,7 +33,6 @@ webview2-com = "0.19.1"
 [target."cfg(any(target_os = \"linux\", target_os = \"dragonfly\", target_os = \"freebsd\", target_os = \"openbsd\", target_os = \"netbsd\"))".dependencies]
 gtk = { version = "0.15", features = [ "v3_20" ] }
 webkit2gtk = { version = "0.18.2", features = [ "v2_22" ] }
-percent-encoding = "2.1"
 
 [target."cfg(any(target_os = \"ios\", target_os = \"macos\"))".dependencies]
 cocoa = "0.24"
diff --git a/core/tauri-runtime-wry/src/lib.rs b/core/tauri-runtime-wry/src/lib.rs
index e4223e77700..8cd4735769d 100644
--- a/core/tauri-runtime-wry/src/lib.rs
+++ b/core/tauri-runtime-wry/src/lib.rs
@@ -3247,13 +3247,27 @@ fn create_webview<T: UserEvent>(
   if window_builder.center {
     let _ = center_window(&window, window.inner_size());
   }
-  let mut webview_builder = WebViewBuilder::new(window)
-    .map_err(|e| Error::CreateWebview(Box::new(e)))?
+
+  let mut webview_builder =
+    WebViewBuilder::new(window).map_err(|e| Error::CreateWebview(Box::new(e)))?;
+
+  // use with_html method if html content can be extracted from url.
+  // else defaults to with_url method
+  webview_builder = if let Some(html_string) = tauri_utils::html::extract_html_content(&url) {
+    webview_builder
+      .with_html(html_string)
+      .map_err(|e| Error::CreateWebview(Box::new(e)))?
+  } else {
+    webview_builder
+      .with_url(&url)
+      .map_err(|e| Error::CreateWebview(Box::new(e)))?
+  };
+
+  webview_builder = webview_builder
     .with_focused(focused)
-    .with_url(&url)
-    .unwrap() // safe to unwrap because we validate the URL beforehand
     .with_transparent(is_window_transparent)
     .with_accept_first_mouse(webview_attributes.accept_first_mouse);
+
   if webview_attributes.file_drop_handler_enabled {
     webview_builder = webview_builder
       .with_file_drop_handler(create_file_drop_handler(window_event_listeners.clone()));
diff --git a/core/tauri-runtime/Cargo.toml b/core/tauri-runtime/Cargo.toml
index cccd75221da..f6b9bcfe0c6 100644
--- a/core/tauri-runtime/Cargo.toml
+++ b/core/tauri-runtime/Cargo.toml
@@ -50,3 +50,4 @@ system-tray = [ ]
 macos-private-api = [ ]
 global-shortcut = [ ]
 clipboard = [ ]
+window-data-url = [ "tauri-utils/window-data-url" ]
diff --git a/core/tauri-utils/Cargo.toml b/core/tauri-utils/Cargo.toml
index a7c2748fa3e..32532adcb64 100644
--- a/core/tauri-utils/Cargo.toml
+++ b/core/tauri-utils/Cargo.toml
@@ -38,6 +38,7 @@ semver = "1"
 infer = "0.13"
 dunce = "1"
 log = "0.4.20"
+data-url = { version = "0.3.1", optional = true }
 
 [target."cfg(target_os = \"linux\")".dependencies]
 heck = "0.4"
@@ -54,3 +55,4 @@ process-relaunch-dangerous-allow-symlink-macos = [ ]
 config-json5 = [ "json5" ]
 config-toml = [ "toml" ]
 resources = [ "glob", "walkdir" ]
+window-data-url = [ "data-url" ]
diff --git a/core/tauri-utils/src/config.rs b/core/tauri-utils/src/config.rs
index c9485884df5..29908fee0c8 100644
--- a/core/tauri-utils/src/config.rs
+++ b/core/tauri-utils/src/config.rs
@@ -54,12 +54,18 @@ pub enum WindowUrl {
   /// For instance, to load `tauri://localhost/users/john`,
   /// you can simply provide `users/john` in this configuration.
   App(PathBuf),
+  #[cfg(feature = "window-data-url")]
+  /// A data url, for example data:text/html,<h1>Hello world</h1>
+  /// Data url should not be encoded
+  DataUrl(Url),
 }
 
 impl fmt::Display for WindowUrl {
   fn fmt(&self, f: &mut fmt::Formatter<'_>) -> fmt::Result {
     match self {
       Self::External(url) => write!(f, "{url}"),
+      #[cfg(feature = "window-data-url")]
+      Self::DataUrl(url) => write!(f, "{url}"),
       Self::App(path) => write!(f, "{}", path.display()),
     }
   }
@@ -3281,6 +3287,11 @@ mod build {
           let url = url_lit(url);
           quote! { #prefix::External(#url) }
         }
+        #[cfg(feature = "window-data-url")]
+        Self::DataUrl(url) => {
+          let url = url_lit(url);
+          quote! { #prefix::DataUrl(#url) }
+        }
       })
     }
   }
diff --git a/core/tauri-utils/src/html.rs b/core/tauri-utils/src/html.rs
index 5b8af5772ca..6fd35698332 100644
--- a/core/tauri-utils/src/html.rs
+++ b/core/tauri-utils/src/html.rs
@@ -286,6 +286,20 @@ pub fn inline_isolation(document: &mut NodeRef, dir: &Path) {
   }
 }
 
+/// Temporary naive method to check if a string is a html
+pub fn is_html(data_string: &str) -> bool {
+  data_string.contains('<') && data_string.contains('>')
+}
+
+/// Temporary naive method to extract data from html data string
+pub fn extract_html_content(input: &str) -> Option<&str> {
+  if input.starts_with("data:text/html,") {
+    Some(&input[15..])
+  } else {
+    None
+  }
+}
+
 #[cfg(test)]
 mod tests {
   use kuchiki::traits::*;
diff --git a/core/tauri/Cargo.toml b/core/tauri/Cargo.toml
index 830530e086e..35d93d533e3 100644
--- a/core/tauri/Cargo.toml
+++ b/core/tauri/Cargo.toml
@@ -87,7 +87,7 @@ time = { version = "0.3", features = [ "parsing", "formatting" ], optional = tru
 os_info = { version = "3", optional = true }
 regex = { version = "1", optional = true }
 glob = "0.3"
-data-url = { version = "0.2", optional = true }
+data-url = { version = "0.3.1", optional = true }
 serialize-to-javascript = "=0.1.1"
 infer = { version = "0.9", optional = true }
 png = { version = "0.17", optional = true }
@@ -184,7 +184,7 @@ macos-private-api = [
   "tauri-runtime-wry/macos-private-api"
 ]
 windows7-compat = [ "win7-notifications" ]
-window-data-url = [ "data-url" ]
+window-data-url = [ "tauri-utils/window-data-url", "data-url" ]
 api-all = [
   "clipboard-all",
   "dialog-all",
diff --git a/core/tauri/src/manager.rs b/core/tauri/src/manager.rs
index fd19adcd17a..ecb21296d31 100644
--- a/core/tauri/src/manager.rs
+++ b/core/tauri/src/manager.rs
@@ -995,6 +995,8 @@ impl<R: Runtime> WindowManager<R> {
         }
       }
       WindowUrl::External(url) => url.clone(),
+      #[cfg(feature = "window-data-url")]
+      WindowUrl::DataUrl(url) => url.clone(),
       _ => unimplemented!(),
     };
 
@@ -1005,23 +1007,46 @@ impl<R: Runtime> WindowManager<R> {
       ));
     }
 
-    #[cfg(feature = "window-data-url")]
-    if let Some(csp) = self.csp() {
-      if url.scheme() == "data" {
-        if let Ok(data_url) = data_url::DataUrl::process(url.as_str()) {
-          let (body, _) = data_url.decode_to_vec().unwrap();
-          let html = String::from_utf8_lossy(&body).into_owned();
-          // naive way to check if it's an html
-          if html.contains('<') && html.contains('>') {
+    match (
+      url.scheme(),
+      tauri_utils::html::extract_html_content(url.as_str()),
+    ) {
+      #[cfg(feature = "window-data-url")]
+      ("data", Some(html_string)) => {
+        // There is an issue with the external DataUrl where HTML containing special characters
+        // are not correctly processed. A workaround is to first percent encode the html string,
+        // before it processed by DataUrl.
+        let encoded_string = percent_encoding::utf8_percent_encode(html_string, percent_encoding::NON_ALPHANUMERIC).to_string();
+        let url = data_url::DataUrl::process(&format!("data:text/html,{}", encoded_string))
+          .map_err(|_| crate::Error::InvalidWindowUrl("Failed to process data url"))
+          .and_then(|data_url| {
+            data_url
+              .decode_to_vec()
+              .map_err(|_| crate::Error::InvalidWindowUrl("Failed to decode processed data url"))
+          })
+          .and_then(|(body, _)| {
+            let html = String::from_utf8_lossy(&body).into_owned();
             let mut document = tauri_utils::html::parse(html);
-            tauri_utils::html::inject_csp(&mut document, &csp.to_string());
-            url.set_path(&format!("text/html,{}", document.to_string()));
-          }
-        }
+            if let Some(csp) = self.csp() {
+              tauri_utils::html::inject_csp(&mut document, &csp.to_string());
+            }
+            // decode back to raw html, as the content should be fully decoded
+            // when passing to wry / tauri-runtime-wry, which will be responsible
+            // for handling the encoding based on the OS.
+            let encoded_html = document.to_string();
+            Ok(
+              percent_encoding::percent_decode_str(encoded_html.as_str())
+                .decode_utf8_lossy()
+                .to_string(),
+            )
+          })
+          .unwrap_or(html_string.to_string());
+        pending.url = format!("data:text/html,{}", url);
       }
-    }
-
-    pending.url = url.to_string();
+      _ => {
+        pending.url = url.to_string();
+      }
+    };
 
     if !pending.window_builder.has_icon() {
       if let Some(default_window_icon) = self.inner.default_window_icon.clone() {