diff --git a/google/data_source_google_active_folder.go b/google/data_source_google_active_folder.go
index 045005dc8c0..3d64ea2cf6f 100644
--- a/google/data_source_google_active_folder.go
+++ b/google/data_source_google_active_folder.go
@@ -2,6 +2,7 @@ package google
 
 import (
 	"fmt"
+	"net/url"
 
 	"github.com/hashicorp/terraform/helper/schema"
 	resourceManagerV2Beta1 "google.golang.org/api/cloudresourcemanager/v2beta1"
@@ -34,7 +35,7 @@ func dataSourceGoogleActiveFolderRead(d *schema.ResourceData, meta interface{})
 	parent := d.Get("parent").(string)
 	displayName := d.Get("display_name").(string)
 
-	queryString := fmt.Sprintf("lifecycleState=ACTIVE AND parent=%s AND displayName=%s", parent, displayName)
+	queryString := fmt.Sprintf("lifecycleState=ACTIVE AND parent=%s AND displayName=%s", parent, url.QueryEscape(displayName))
 	searchRequest := &resourceManagerV2Beta1.SearchFoldersRequest{
 		Query: queryString,
 	}
@@ -43,12 +44,12 @@ func dataSourceGoogleActiveFolderRead(d *schema.ResourceData, meta interface{})
 		return handleNotFoundError(err, d, fmt.Sprintf("Folder Not Found : %s", displayName))
 	}
 
-	folders := searchResponse.Folders
-	if len(folders) != 1 {
-		return fmt.Errorf("More than one folder found")
+	for _, folder := range searchResponse.Folders {
+		if folder.DisplayName == displayName {
+			d.SetId(folder.Name)
+			d.Set("name", folder.Name)
+			return nil
+		}
 	}
-
-	d.SetId(folders[0].Name)
-	d.Set("name", folders[0].Name)
-	return nil
+	return fmt.Errorf("Folder not found")
 }
diff --git a/google/data_source_google_active_folder_test.go b/google/data_source_google_active_folder_test.go
index de261314354..d083c77ea58 100644
--- a/google/data_source_google_active_folder_test.go
+++ b/google/data_source_google_active_folder_test.go
@@ -9,7 +9,7 @@ import (
 	"github.com/hashicorp/terraform/terraform"
 )
 
-func TestAccDataSourceGoogleActiveFolder(t *testing.T) {
+func TestAccDataSourceGoogleActiveFolder_default(t *testing.T) {
 	org := getTestOrgFromEnv(t)
 
 	parent := fmt.Sprintf("organizations/%s", org)
@@ -29,6 +29,26 @@ func TestAccDataSourceGoogleActiveFolder(t *testing.T) {
 	})
 }
 
+func TestAccDataSourceGoogleActiveFolder_space(t *testing.T) {
+	org := getTestOrgFromEnv(t)
+
+	parent := fmt.Sprintf("organizations/%s", org)
+	displayName := "terraform test " + acctest.RandString(10)
+
+	resource.Test(t, resource.TestCase{
+		PreCheck:  func() { testAccPreCheck(t) },
+		Providers: testAccProviders,
+		Steps: []resource.TestStep{
+			resource.TestStep{
+				Config: testAccDataSourceGoogleActiveFolderConfig(parent, displayName),
+				Check: resource.ComposeTestCheckFunc(
+					testAccDataSourceGoogleActiveFolderCheck("data.google_active_folder.my_folder", "google_folder.foobar"),
+				),
+			},
+		},
+	})
+}
+
 func testAccDataSourceGoogleActiveFolderCheck(data_source_name string, resource_name string) resource.TestCheckFunc {
 	return func(s *terraform.State) error {
 		ds, ok := s.RootModule().Resources[data_source_name]