diff --git a/src/ImageProcessor.Web/Caching/DiskCache.cs b/src/ImageProcessor.Web/Caching/DiskCache.cs
index 4ce6021fb..7930623ee 100644
--- a/src/ImageProcessor.Web/Caching/DiskCache.cs
+++ b/src/ImageProcessor.Web/Caching/DiskCache.cs
@@ -11,6 +11,7 @@ namespace ImageProcessor.Web.Caching
     using System.Collections.Generic;
     using System.IO;
     using System.Linq;
+    using System.Text.RegularExpressions;
     using System.Threading;
     using System.Threading.Tasks;
     using System.Web;
@@ -42,6 +43,20 @@ namespace ImageProcessor.Web.Caching
         /// </summary>
         internal static readonly int MaxFileCachedDuration = ImageProcessorConfig.Instance.MaxCacheDays;
 
+        /// <summary>
+        /// The maximum number of files allowed in the directory.
+        /// </summary>
+        /// <remarks>
+        /// NTFS Folder can handle up to 8000 files in a directory. 
+        /// This buffer will help us to ensure that we rarely hit anywhere near that limit.
+        /// </remarks>
+        private const int MaxFilesCount = 6000;
+
+        /// <summary>
+        /// The regular expression to search strings for extension changes.
+        /// </summary>
+        private static readonly Regex FormatRegex = new Regex(@"format=(jpeg|png|bmp|gif)", RegexOptions.Compiled);
+
         /// <summary>
         ///     The object to lock against.
         /// </summary>
@@ -51,15 +66,6 @@ namespace ImageProcessor.Web.Caching
         ///     The default paths for Cached folders on the server.
         /// </summary>
         private static readonly string CachePath = ImageProcessorConfig.Instance.VirtualCachePath;
-
-        /// <summary>
-        /// The maximum number of files allowed in the directory.
-        /// </summary>
-        /// <remarks>
-        /// NTFS Folder can handle up to 8000 files in a directory. 
-        /// This buffer will help us to ensure that we rarely hit anywhere near that limit.
-        /// </remarks>
-        private const int MaxFilesCount = 6000;
         #endregion
 
         #region Methods
@@ -85,7 +91,13 @@ namespace ImageProcessor.Web.Caching
                     Directory.CreateDirectory(absoluteCachePath);
                 }
 
-                string cachedFileName = string.Format("{0}{1}", imagePath.ToMD5Fingerprint(), imageName.Substring(imageName.LastIndexOf(".", StringComparison.Ordinal)));
+                string parsedExtension = ParseExtension(imagePath);
+                string fallbackExtension = imageName.Substring(imageName.LastIndexOf(".", StringComparison.Ordinal));
+
+                string cachedFileName = string.Format(
+                    "{0}{1}",
+                    imagePath.ToMD5Fingerprint(),
+                    !string.IsNullOrWhiteSpace(parsedExtension) ? parsedExtension : fallbackExtension);
                 cachedPath = Path.Combine(absoluteCachePath, cachedFileName);
             }
 
@@ -208,6 +220,28 @@ namespace ImageProcessor.Web.Caching
                 }
             }
         }
+
+        /// <summary>
+        /// Returns the correct file extension for the given string input
+        /// </summary>
+        /// <param name="input">
+        /// The string to parse.
+        /// </param>
+        /// <returns>
+        /// The correct file extension for the given string input if it can find one; otherwise an empty string.
+        /// </returns>
+        private static string ParseExtension(string input)
+        {
+            foreach (Match match in FormatRegex.Matches(input))
+            {
+                if (match.Success)
+                {
+                    return "." + match.Value.Split('=')[1];
+                }
+            }
+
+            return string.Empty;
+        }
         #endregion
     }
 }
diff --git a/src/ImageProcessor.Web/HttpModules/ImageProcessingModule.cs b/src/ImageProcessor.Web/HttpModules/ImageProcessingModule.cs
index a3e23610f..335df1cb5 100644
--- a/src/ImageProcessor.Web/HttpModules/ImageProcessingModule.cs
+++ b/src/ImageProcessor.Web/HttpModules/ImageProcessingModule.cs
@@ -83,7 +83,7 @@ namespace ImageProcessor.Web.HttpModules
             if (isRemote)
             {
                 // We need to split the querystring to get the actual values we want.
-                string[] paths = HttpUtility.UrlDecode(context.Request.QueryString.ToString()).Replace("%7c", "|").Split('?');
+                string[] paths = HttpUtility.UrlDecode(context.Request.QueryString.ToString()).Split('?');
 
                 path = paths[0];
 
diff --git a/src/ImageProcessor/ImageFactory.cs b/src/ImageProcessor/ImageFactory.cs
index 9acd8e135..7eded8bd4 100644
--- a/src/ImageProcessor/ImageFactory.cs
+++ b/src/ImageProcessor/ImageFactory.cs
@@ -97,7 +97,6 @@ namespace ImageProcessor
         #endregion
 
         #region Methods
-
         /// <summary>
         /// Loads the image to process. Always call this method first.
         /// </summary>
@@ -358,6 +357,12 @@ namespace ImageProcessor
         {
             if (this.ShouldProcess)
             {
+                // We need to check here if the path has an extension and remove it if so.
+                // This is so we can add the correct image format.
+                int length = filePath.LastIndexOf(".", StringComparison.Ordinal);
+                string extension = ImageUtils.GetExtensionFromImageFormat(this.ImageFormat);
+                filePath = length == -1 ? filePath + extension : filePath.Substring(0, length) + extension;
+
                 // Fix the colour palette of gif images.
                 this.FixGifs();
 
diff --git a/src/ImageProcessor/Imaging/ImageUtils.cs b/src/ImageProcessor/Imaging/ImageUtils.cs
index e5525e44c..ee6ec75cc 100644
--- a/src/ImageProcessor/Imaging/ImageUtils.cs
+++ b/src/ImageProcessor/Imaging/ImageUtils.cs
@@ -74,10 +74,35 @@ namespace ImageProcessor.Imaging
                         return ImageFormat.Jpeg;
                 }
             }
-            // TODO: SHow custom exception??
+
+            // TODO: Show custom exception??
             return null;
         }
 
+        /// <summary>
+        /// Returns the correct file extension for the given <see cref="T:System.Drawing.Imaging.ImageFormat"/>.
+        /// </summary>
+        /// <param name="imageFormat">
+        /// The <see cref="T:System.Drawing.Imaging.ImageFormat"/> to return the extension for.
+        /// </param>
+        /// <returns>
+        /// The correct file extension for the given <see cref="T:System.Drawing.Imaging.ImageFormat"/>.
+        /// </returns>
+        public static string GetExtensionFromImageFormat(ImageFormat imageFormat)
+        {
+            switch (imageFormat.ToString())
+            {
+                case "Gif":
+                    return ".gif";
+                case "Bmp":
+                    return ".bmp";
+                case "Png":
+                    return ".png";
+                default:
+                    return ".jpg";
+            }
+        }
+
         /// <summary>
         /// Returns the correct image format based on the given response type.
         /// </summary>