diff --git a/packages/rtk-query-codegen-openapi/src/generate.ts b/packages/rtk-query-codegen-openapi/src/generate.ts
index b62d987cb2..d128d100b4 100644
--- a/packages/rtk-query-codegen-openapi/src/generate.ts
+++ b/packages/rtk-query-codegen-openapi/src/generate.ts
@@ -110,7 +110,8 @@ export async function generateApi(
     filterEndpoints,
     endpointOverrides,
     unionUndefined,
-    encodeParams = false,
+    encodePathParams = false,
+    encodeQueryParams = false,
     flattenArg = false,
     includeDefault = false,
     useEnumType = false,
@@ -398,7 +399,14 @@ export async function generateApi(
       type: isQuery ? 'query' : 'mutation',
       Response: ResponseTypeName,
       QueryArg,
-      queryFn: generateQueryFn({ operationDefinition, queryArg, isQuery, isFlatArg, encodeParams }),
+      queryFn: generateQueryFn({
+        operationDefinition,
+        queryArg,
+        isQuery,
+        isFlatArg,
+        encodePathParams,
+        encodeQueryParams,
+      }),
       extraEndpointsProps: isQuery
         ? generateQueryEndpointProps({ operationDefinition })
         : generateMutationEndpointProps({ operationDefinition }),
@@ -411,13 +419,15 @@ export async function generateApi(
     queryArg,
     isFlatArg,
     isQuery,
-    encodeParams,
+    encodePathParams,
+    encodeQueryParams,
   }: {
     operationDefinition: OperationDefinition;
     queryArg: QueryArgDefinitions;
     isFlatArg: boolean;
     isQuery: boolean;
-    encodeParams: boolean;
+    encodePathParams: boolean;
+    encodeQueryParams: boolean;
   }) {
     const { path, verb } = operationDefinition;
 
@@ -434,14 +444,21 @@ export async function generateApi(
 
       const properties = parameters.map((param) => {
         const value = isFlatArg ? rootObject : accessProperty(rootObject, param.name);
-        return createPropertyAssignment(
-          param.originalName,
-          encodeParams && param.param?.in === 'query'
-            ? factory.createCallExpression(factory.createIdentifier('encodeURIComponent'), undefined, [
-                factory.createCallExpression(factory.createIdentifier('String'), undefined, [value]),
-              ])
-            : value
-        );
+
+        const encodedValue =
+          encodeQueryParams && param.param?.in === 'query'
+            ? factory.createConditionalExpression(
+                value,
+                undefined,
+                factory.createCallExpression(factory.createIdentifier('encodeURIComponent'), undefined, [
+                  factory.createCallExpression(factory.createIdentifier('String'), undefined, [value]),
+                ]),
+                undefined,
+                factory.createIdentifier('undefined')
+              )
+            : value;
+
+        return createPropertyAssignment(param.originalName, encodedValue);
       });
 
       return factory.createPropertyAssignment(
@@ -463,7 +480,7 @@ export async function generateApi(
           [
             factory.createPropertyAssignment(
               factory.createIdentifier('url'),
-              generatePathExpression(path, pickParams('path'), rootObject, isFlatArg, encodeParams)
+              generatePathExpression(path, pickParams('path'), rootObject, isFlatArg, encodePathParams)
             ),
             isQuery && verb.toUpperCase() === 'GET'
               ? undefined
@@ -511,7 +528,7 @@ function generatePathExpression(
   pathParameters: QueryArgDefinition[],
   rootObject: ts.Identifier,
   isFlatArg: boolean,
-  encodeParams: boolean
+  encodePathParams: boolean
 ) {
   const expressions: Array<[string, string]> = [];
 
@@ -529,7 +546,7 @@ function generatePathExpression(
         factory.createTemplateHead(head),
         expressions.map(([prop, literal], index) => {
           const value = isFlatArg ? rootObject : accessProperty(rootObject, prop);
-          const encodedValue = encodeParams
+          const encodedValue = encodePathParams
             ? factory.createCallExpression(factory.createIdentifier('encodeURIComponent'), undefined, [
                 factory.createCallExpression(factory.createIdentifier('String'), undefined, [value]),
               ])
diff --git a/packages/rtk-query-codegen-openapi/src/types.ts b/packages/rtk-query-codegen-openapi/src/types.ts
index b5c42561c2..437e058087 100644
--- a/packages/rtk-query-codegen-openapi/src/types.ts
+++ b/packages/rtk-query-codegen-openapi/src/types.ts
@@ -75,9 +75,14 @@ export interface CommonOptions {
   tag?: boolean;
   /**
    * defaults to false
-   * `true` will add `encodeURIComponent` to the generated query params
+   * `true` will add `encodeURIComponent` to the generated path parameters
    */
-  encodeParams?: boolean;
+  encodePathParams?: boolean;
+  /**
+   * defaults to false
+   * `true` will add `encodeURIComponent` to the generated query parameters
+   */
+  encodeQueryParams?: boolean;
   /**
    * defaults to false
    * `true` will "flatten" the arg so that you can do things like `useGetEntityById(1)` instead of `useGetEntityById({ entityId: 1 })`
diff --git a/packages/rtk-query-codegen-openapi/test/generateEndpoints.test.ts b/packages/rtk-query-codegen-openapi/test/generateEndpoints.test.ts
index 3c1c9df935..93ed235849 100644
--- a/packages/rtk-query-codegen-openapi/test/generateEndpoints.test.ts
+++ b/packages/rtk-query-codegen-openapi/test/generateEndpoints.test.ts
@@ -174,28 +174,28 @@ describe('endpoint overrides', () => {
   });
 });
 
-describe('option encodeParams', () => {
+describe('option encodePathParams', () => {
   const config = {
     apiFile: './fixtures/emptyApi.ts',
     schemaFile: resolve(__dirname, 'fixtures/petstore.json'),
-    encodeParams: true,
+    encodePathParams: true,
   };
 
-  it('should encode query parameters', async () => {
+  it('should encode path parameters', async () => {
     const api = await generateEndpoints({
       ...config,
-      filterEndpoints: ['findPetsByStatus'],
+      filterEndpoints: ['getOrderById'],
     });
-    expect(api).toContain('status: encodeURIComponent(String(queryArg.status))');
+    // eslint-disable-next-line no-template-curly-in-string
+    expect(api).toContain('`/store/order/${encodeURIComponent(String(queryArg.orderId))}`');
   });
 
-  it('should encode path parameters', async () => {
+  it('should not encode query parameters', async () => {
     const api = await generateEndpoints({
       ...config,
-      filterEndpoints: ['getOrderById'],
+      filterEndpoints: ['findPetsByStatus'],
     });
-    // eslint-disable-next-line no-template-curly-in-string
-    expect(api).toContain('`/store/order/${encodeURIComponent(String(queryArg.orderId))}`');
+    expect(api).toContain('status: queryArg.status');
   });
 
   it('should not encode body parameters', async () => {
@@ -217,18 +217,63 @@ describe('option encodeParams', () => {
     expect(api).toContain('`/store/order/${encodeURIComponent(String(queryArg))}`');
   });
 
-  it('should not encode parameters when encodeParams is false', async () => {
+  it('should not encode path parameters when encodePathParams is false', async () => {
     const api = await generateEndpoints({
       ...config,
-      encodeParams: false,
+      encodePathParams: false,
       filterEndpoints: ['findPetsByStatus', 'getOrderById'],
     });
-    expect(api).toContain('status: queryArg.status');
     // eslint-disable-next-line no-template-curly-in-string
     expect(api).toContain('`/store/order/${queryArg.orderId}`');
   });
 });
 
+describe('option encodeQueryParams', () => {
+  const config = {
+    apiFile: './fixtures/emptyApi.ts',
+    schemaFile: resolve(__dirname, 'fixtures/petstore.json'),
+    encodeQueryParams: true,
+  };
+
+  it('should conditionally encode query parameters', async () => {
+    const api = await generateEndpoints({
+      ...config,
+      filterEndpoints: ['findPetsByStatus'],
+    });
+
+    expect(api).toMatch(
+      /params:\s*{\s*\n\s*status:\s*queryArg\.status\s*\?\s*encodeURIComponent\(\s*String\(queryArg\.status\)\s*\)\s*:\s*undefined\s*,?\s*\n\s*}/s
+    );
+  });
+
+  it('should not encode path parameters', async () => {
+    const api = await generateEndpoints({
+      ...config,
+      filterEndpoints: ['getOrderById'],
+    });
+    // eslint-disable-next-line no-template-curly-in-string
+    expect(api).toContain('`/store/order/${queryArg.orderId}`');
+  });
+
+  it('should not encode body parameters', async () => {
+    const api = await generateEndpoints({
+      ...config,
+      filterEndpoints: ['addPet'],
+    });
+    expect(api).toContain('body: queryArg.pet');
+    expect(api).not.toContain('body: encodeURIComponent(String(queryArg.pet))');
+  });
+
+  it('should not encode query parameters when encodeQueryParams is false', async () => {
+    const api = await generateEndpoints({
+      ...config,
+      encodeQueryParams: false,
+      filterEndpoints: ['findPetsByStatus', 'getOrderById'],
+    });
+    expect(api).toContain('status: queryArg.status');
+  });
+});
+
 describe('option flattenArg', () => {
   const config = {
     apiFile: './fixtures/emptyApi.ts',