diff --git a/.changeset/sour-kids-nail.md b/.changeset/sour-kids-nail.md
new file mode 100644
index 0000000000..591f13123a
--- /dev/null
+++ b/.changeset/sour-kids-nail.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-catalog-backend-module-gitlab': patch
+---
+
+Fix GitlabOrgDiscoveryEntityProvider group path not being encoded causing 404 when using a subgroup in config.group
diff --git a/plugins/catalog-backend-module-gitlab/src/lib/client.ts b/plugins/catalog-backend-module-gitlab/src/lib/client.ts
index 561f38634b..f5ed760b21 100644
--- a/plugins/catalog-backend-module-gitlab/src/lib/client.ts
+++ b/plugins/catalog-backend-module-gitlab/src/lib/client.ts
@@ -174,7 +174,10 @@ export class GitLabClient {
     groupPath: string,
     options?: CommonListOptions,
   ): Promise<GitLabGroup> {
-    return this.nonPagedRequest(`/groups/${groupPath}`, options);
+    return this.nonPagedRequest(
+      `/groups/${encodeURIComponent(groupPath)}`,
+      options,
+    );
   }
 
   async listDescendantGroups(