diff --git a/lib-es5/utils/encoding/base64EncodeURL.js b/lib-es5/utils/encoding/base64EncodeURL.js
index be9d5f4f..b0a3b2a9 100644
--- a/lib-es5/utils/encoding/base64EncodeURL.js
+++ b/lib-es5/utils/encoding/base64EncodeURL.js
@@ -10,7 +10,9 @@ function base64EncodeURL(sourceUrl) {
     // ignore errors
   }
   sourceUrl = encodeURI(sourceUrl);
-  return base64Encode(sourceUrl);
+  return base64Encode(sourceUrl).replace(/\+/g, '-') // Convert '+' to '-'
+  .replace(/\//g, '_') // Convert '/' to '_'
+  .replace(/=+$/, ''); // Remove ending '=';
 }
 
 module.exports.base64EncodeURL = base64EncodeURL;
\ No newline at end of file
diff --git a/lib-es5/utils/index.js b/lib-es5/utils/index.js
index 92d60496..79c83afd 100644
--- a/lib-es5/utils/index.js
+++ b/lib-es5/utils/index.js
@@ -173,9 +173,8 @@ function process_custom_function(customFunction) {
     return customFunction;
   }
   if (customFunction.function_type === "remote") {
-    var encodedSource = base64EncodeURL(customFunction.source).replace(/\+/g, '-') // Convert '+' to '-'
-    .replace(/\//g, '_') // Convert '/' to '_'
-    .replace(/=+$/, ''); // Remove ending '='
+    var encodedSource = base64EncodeURL(customFunction.source);
+
     return [customFunction.function_type, encodedSource].join(":");
   }
   return [customFunction.function_type, customFunction.source].join(":");
diff --git a/lib/utils/encoding/base64EncodeURL.js b/lib/utils/encoding/base64EncodeURL.js
index 786585fc..738a789f 100644
--- a/lib/utils/encoding/base64EncodeURL.js
+++ b/lib/utils/encoding/base64EncodeURL.js
@@ -7,7 +7,10 @@ function base64EncodeURL(sourceUrl) {
     // ignore errors
   }
   sourceUrl = encodeURI(sourceUrl);
-  return base64Encode(sourceUrl);
+  return base64Encode(sourceUrl)
+    .replace(/\+/g, '-') // Convert '+' to '-'
+    .replace(/\//g, '_') // Convert '/' to '_'
+    .replace(/=+$/, ''); // Remove ending '=';
 }
 
 
diff --git a/lib/utils/index.js b/lib/utils/index.js
index eb3ff010..8719daad 100644
--- a/lib/utils/index.js
+++ b/lib/utils/index.js
@@ -156,10 +156,8 @@ function process_custom_function(customFunction) {
     return customFunction;
   }
   if (customFunction.function_type === "remote") {
-    const encodedSource = base64EncodeURL(customFunction.source)
-      .replace(/\+/g, '-') // Convert '+' to '-'
-      .replace(/\//g, '_') // Convert '/' to '_'
-      .replace(/=+$/, ''); // Remove ending '='
+    const encodedSource = base64EncodeURL(customFunction.source);
+
     return [customFunction.function_type, encodedSource].join(":");
   }
   return [customFunction.function_type, customFunction.source].join(":");
diff --git a/test/integration/api/uploader/uploader_spec.js b/test/integration/api/uploader/uploader_spec.js
index ebecd4c1..cb198519 100644
--- a/test/integration/api/uploader/uploader_spec.js
+++ b/test/integration/api/uploader/uploader_spec.js
@@ -99,6 +99,8 @@ describe("uploader", function () {
     });
   });
 
+
+
   it("should successfully override original_filename", function () {
     return cloudinary.v2.uploader.upload("http://cloudinary.com/images/old_logo.png", {
       filename_override: 'overridden'
@@ -116,6 +118,17 @@ describe("uploader", function () {
     });
   });
 
+  it('should allow upload with url safe base64 in overlay', function () {
+    const overlayUrl = 'https://res.cloudinary.com/demo/image/upload/logos/cloudinary_full_logo_white_small.png';
+    const baseImageUrl ='http://cloudinary.com/images/old_logo.png';
+
+    const options = {transformation: {overlay: { url: overlayUrl }}};
+    return cloudinary.v2.uploader.upload(baseImageUrl, options)
+      .then((result) => {
+        expect(result).to.have.key("created_at");
+      });
+  });
+
   describe("remote urls ", function () {
     const mocked = helper.mockTest();
     it("should send s3:// URLs to server", function () {
diff --git a/test/utils/utils_spec.js b/test/utils/utils_spec.js
index f42a60b5..36806165 100644
--- a/test/utils/utils_spec.js
+++ b/test/utils/utils_spec.js
@@ -759,18 +759,18 @@ describe("utils", function () {
             resource_type: "fetch",
             url: "http://cloudinary.com/images/old_logo.png"
           },
-          "fetch:aHR0cDovL2Nsb3VkaW5hcnkuY29tL2ltYWdlcy9vbGRfbG9nby5wbmc="
+          "fetch:aHR0cDovL2Nsb3VkaW5hcnkuY29tL2ltYWdlcy9vbGRfbG9nby5wbmc"
         ],
         [
           "fetch remote UTF",
           {
             url: "https://upload.wikimedia.org/wikipedia/commons/2/2b/고창갯벌.jpg"
           },
-          "fetch:aHR0cHM6Ly91cGxvYWQud2lraW1lZGlhLm9yZy93aWtpcGVkaWEvY29tbW9ucy8yLzJiLyVFQSVCMyVBMCVFQyVCMCVCRCVFQSVCMCVBRiVFQiVCMiU4Qy5qcGc="
+          "fetch:aHR0cHM6Ly91cGxvYWQud2lraW1lZGlhLm9yZy93aWtpcGVkaWEvY29tbW9ucy8yLzJiLyVFQSVCMyVBMCVFQyVCMCVCRCVFQSVCMCVBRiVFQiVCMiU4Qy5qcGc"
         ],
         ["fetch explicit",
           "fetch:http://cloudinary.com/images/old_logo.png",
-          "fetch:aHR0cDovL2Nsb3VkaW5hcnkuY29tL2ltYWdlcy9vbGRfbG9nby5wbmc="]
+          "fetch:aHR0cDovL2Nsb3VkaW5hcnkuY29tL2ltYWdlcy9vbGRfbG9nby5wbmc"]
       ];
       [
         {