diff --git a/crates/util/src/paths.rs b/crates/util/src/paths.rs
index 9e80bf1d60..42133b3df3 100644
--- a/crates/util/src/paths.rs
+++ b/crates/util/src/paths.rs
@@ -258,6 +258,10 @@ impl SanitizedPath {
 
         #[cfg(target_os = "windows")]
         {
+            let path = match path.to_str().and_then(|s| s.strip_prefix(r"\\?\UNC\")) {
+                Some(rest) => PathBuf::from(format!(r"\\{rest}")).into(),
+                None => path,
+            };
             let simplified = dunce::simplified(path.as_ref());
             if simplified == path.as_ref() {
                 // safe because `Path` and `SanitizedPath` have the same repr and Drop impl
@@ -2741,6 +2745,14 @@ mod tests {
         );
     }
 
+    #[perf]
+    #[cfg(target_os = "windows")]
+    fn test_sanitized_path_verbatim_unc() {
+        let path: Arc<Path> = PathBuf::from("\\\\?\\UNC\\server\\share\\file.txt").into();
+        let sanitized_path = SanitizedPath::from_arc(path);
+        assert_eq!(sanitized_path.to_string(), "\\\\server\\share\\file.txt");
+    }
+
     #[perf]
     fn test_compare_numeric_segments() {
         // Helper function to create peekable iterators and test