diff --git a/ActiveSync/SOGoActiveSyncDispatcher.m b/ActiveSync/SOGoActiveSyncDispatcher.m
index 2ed420f13..83314be2f 100644
--- a/ActiveSync/SOGoActiveSyncDispatcher.m
+++ b/ActiveSync/SOGoActiveSyncDispatcher.m
@@ -453,7 +453,7 @@ static BOOL debugOn = NO;
   [s appendString: @"<FolderCreate xmlns=\"FolderHierarchy:\">"];
   [s appendFormat: @"<Status>%d</Status>", 1];
   [s appendFormat: @"<SyncKey>%@</SyncKey>", syncKey];
-  [s appendFormat: @"<ServerId>%@</ServerId>", nameInContainer];
+  [s appendFormat: @"<ServerId>%@</ServerId>", [nameInContainer stringByEscapingURL]];
   [s appendString: @"</FolderCreate>"];
   
   d = [[s dataUsingEncoding: NSUTF8StringEncoding] xml2wbxml];
diff --git a/NEWS b/NEWS
index 00e308a60..e325847da 100644
--- a/NEWS
+++ b/NEWS
@@ -8,7 +8,8 @@ Enhancements
 
 Bug fixes
  - EAS's GetItemEstimate/ItemOperations now support fetching mails and empty folders
- - Fixed some rare cornercases in multidomain configurations
+ - fixed some rare cornercases in multidomain configurations
+ - properly escape folder after creation using EAS (#3237)
 
 2.3.0 (2015-06-01)
 -------------------