diff --git a/index.js b/index.js
index 3cabb37..7e914ba 100644
--- a/index.js
+++ b/index.js
@@ -35,13 +35,22 @@ function parse(str) {
     config.client_encoding = result.query.encoding;
     return config;
   }
-  config.host = result.hostname;
+  if (!config.host) {
+    // Only set the host if there is no equivalent query param.
+    config.host = result.hostname;
+  }
 
+  // If the host is missing it might be a URL-encoded path to a socket.
+  var pathname = result.pathname;
+  if (!config.host && pathname && /^%2f/i.test(pathname)) {
+    var pathnameSplit = pathname.split('/');
+    config.host = decodeURIComponent(pathnameSplit[0]);
+    pathname = pathnameSplit.splice(1).join('/');
+  }
   // result.pathname is not always guaranteed to have a '/' prefix (e.g. relative urls)
   // only strip the slash if it is present.
-  var pathname = result.pathname;
   if (pathname && pathname.charAt(0) === '/') {
-    pathname = result.pathname.slice(1) || null;
+    pathname = pathname.slice(1) || null;
   }
   config.database = pathname && decodeURI(pathname);
 
diff --git a/test/parse.js b/test/parse.js
index 4de2871..07f886e 100644
--- a/test/parse.js
+++ b/test/parse.js
@@ -120,6 +120,43 @@ describe('parse', function(){
     (subject.database === null).should.equal(true);
   });
 
+  it('configuration parameter host', function() {
+    var subject = parse('pg://user:pass@/dbname?host=/unix/socket');
+    subject.user.should.equal('user');
+    subject.password.should.equal('pass');
+    subject.host.should.equal('/unix/socket');
+    subject.database.should.equal('dbname');
+  });
+
+  it('configuration parameter host overrides url host', function() {
+    var subject = parse('pg://user:pass@localhost/dbname?host=/unix/socket');
+    subject.host.should.equal('/unix/socket');
+  });
+
+  it('url with encoded socket', function() {
+    var subject = parse('pg://user:pass@%2Funix%2Fsocket/dbname');
+    subject.user.should.equal('user');
+    subject.password.should.equal('pass');
+    subject.host.should.equal('/unix/socket');
+    subject.database.should.equal('dbname');
+  });
+
+  it('url with real host and an encoded db name', function() {
+    var subject = parse('pg://user:pass@localhost/%2Fdbname');
+    subject.user.should.equal('user');
+    subject.password.should.equal('pass');
+    subject.host.should.equal('localhost');
+    subject.database.should.equal('%2Fdbname');
+  });
+
+  it('configuration parameter host treats encoded socket as part of the db name', function() {
+    var subject = parse('pg://user:pass@%2Funix%2Fsocket/dbname?host=localhost');
+    subject.user.should.equal('user');
+    subject.password.should.equal('pass');
+    subject.host.should.equal('localhost');
+    subject.database.should.equal('%2Funix%2Fsocket/dbname');
+  });
+
   it('configuration parameter application_name', function(){
     var connectionString = 'pg:///?application_name=TheApp';
     var subject = parse(connectionString);