diff --git a/mopidy/local/translator.py b/mopidy/local/translator.py
index 4e248fd1..371643e4 100644
--- a/mopidy/local/translator.py
+++ b/mopidy/local/translator.py
@@ -12,16 +12,25 @@ logger = logging.getLogger(__name__)
 
 
 def local_uri_to_file_uri(uri, media_dir):
-    return path.path_to_uri(local_track_uri_to_path(uri, media_dir))
+    """Convert local track or directory URI to file URI."""
+    return path.path_to_uri(local_uri_to_path(uri, media_dir))
 
 
-def local_track_uri_to_path(uri, media_dir):
-    if not uri.startswith('local:track:'):
+def local_uri_to_path(uri, media_dir):
+    """Convert local track or directory URI to absolute path."""
+    if (
+            not uri.startswith('local:directory:') and
+            not uri.startswith('local:track:')):
         raise ValueError('Invalid URI.')
     file_path = path.uri_to_path(uri).split(b':', 1)[1]
     return os.path.join(media_dir, file_path)
 
 
+def local_track_uri_to_path(uri, media_dir):
+    # Deprecated version to keep old versions of Mopidy-Local-Sqlite working.
+    return local_uri_to_path(uri, media_dir)
+
+
 def path_to_local_track_uri(relpath):
     """Convert path relative to media_dir to local track URI."""
     if isinstance(relpath, compat.text_type):
diff --git a/tests/local/test_translator.py b/tests/local/test_translator.py
new file mode 100644
index 00000000..1a54ae83
--- /dev/null
+++ b/tests/local/test_translator.py
@@ -0,0 +1,68 @@
+# encoding: utf-8
+
+from __future__ import unicode_literals
+
+import pytest
+
+from mopidy.local import translator
+
+
+@pytest.mark.parametrize('local_uri,file_uri', [
+    ('local:directory:A/B', 'file:///home/alice/Music/A/B'),
+    ('local:directory:A%20B', 'file:///home/alice/Music/A%20B'),
+    ('local:directory:A+B', 'file:///home/alice/Music/A%2BB'),
+    (
+        'local:directory:%C3%A6%C3%B8%C3%A5',
+        'file:///home/alice/Music/%C3%A6%C3%B8%C3%A5'),
+    ('local:track:A/B.mp3', 'file:///home/alice/Music/A/B.mp3'),
+    ('local:track:A%20B.mp3', 'file:///home/alice/Music/A%20B.mp3'),
+    ('local:track:A+B.mp3', 'file:///home/alice/Music/A%2BB.mp3'),
+    (
+        'local:track:%C3%A6%C3%B8%C3%A5.mp3',
+        'file:///home/alice/Music/%C3%A6%C3%B8%C3%A5.mp3'),
+])
+def test_local_uri_to_file_uri(local_uri, file_uri):
+    media_dir = b'/home/alice/Music'
+
+    assert translator.local_uri_to_file_uri(local_uri, media_dir) == file_uri
+
+
+@pytest.mark.parametrize('uri', [
+    'A/B',
+    'local:foo:A/B',
+])
+def test_local_uri_to_file_uri_errors(uri):
+    media_dir = b'/home/alice/Music'
+
+    with pytest.raises(ValueError):
+        translator.local_uri_to_file_uri(uri, media_dir)
+
+
+@pytest.mark.parametrize('uri,path', [
+    ('local:directory:A/B', b'/home/alice/Music/A/B'),
+    ('local:directory:A%20B', b'/home/alice/Music/A B'),
+    ('local:directory:A+B', b'/home/alice/Music/A+B'),
+    ('local:directory:%C3%A6%C3%B8%C3%A5', b'/home/alice/Music/æøå'),
+    ('local:track:A/B.mp3', b'/home/alice/Music/A/B.mp3'),
+    ('local:track:A%20B.mp3', b'/home/alice/Music/A B.mp3'),
+    ('local:track:A+B.mp3', b'/home/alice/Music/A+B.mp3'),
+    ('local:track:%C3%A6%C3%B8%C3%A5.mp3', b'/home/alice/Music/æøå.mp3'),
+])
+def test_local_uri_to_path(uri, path):
+    media_dir = b'/home/alice/Music'
+
+    assert translator.local_uri_to_path(uri, media_dir) == path
+
+    # Legacy version to keep old versions of Mopidy-Local-Sqlite working
+    assert translator.local_track_uri_to_path(uri, media_dir) == path
+
+
+@pytest.mark.parametrize('uri', [
+    'A/B',
+    'local:foo:A/B',
+])
+def test_local_uri_to_path_errors(uri):
+    media_dir = b'/home/alice/Music'
+
+    with pytest.raises(ValueError):
+        translator.local_uri_to_path(uri, media_dir)