diff --git a/pkg/files/file.go b/pkg/files/file.go
index accfe7cd..6a956919 100644
--- a/pkg/files/file.go
+++ b/pkg/files/file.go
@@ -47,6 +47,12 @@ func NewSortedFilesFromPaths(paths []string, opts SymlinkAllowOpts) ([]*File, er
 
 		relativePath := ""
 		pathPieces := strings.Split(path, "=")
+		if strings.HasPrefix(pathPieces[0], "http://") || strings.HasPrefix(pathPieces[0], "https://") {
+			pathPieces = []string{path}
+		} else if len(pathPieces) > 1 && (strings.HasPrefix(pathPieces[1], "http://") || strings.HasPrefix(pathPieces[1], "https://")) {
+			pathPieces[1] = strings.Join(pathPieces[1:], "=")
+			pathPieces = pathPieces[0:2]
+		}
 
 		switch len(pathPieces) {
 		case 1:
diff --git a/pkg/files/file_test.go b/pkg/files/file_test.go
new file mode 100644
index 00000000..8e05aac5
--- /dev/null
+++ b/pkg/files/file_test.go
@@ -0,0 +1,27 @@
+// Copyright 2024 The Carvel Authors.
+// SPDX-License-Identifier: Apache-2.0
+
+package files_test
+
+import (
+	"carvel.dev/ytt/pkg/files"
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+	"testing"
+)
+
+func TestNewSortedFilesFromPaths(t *testing.T) {
+	inputPaths := []string{
+		"../yamltemplate/filetests/def.tpltest",
+		"https://example.org/test.yaml?hello=world&foo=bar",
+		"an/overwritten/path/to/file.yaml=https://example.org/test.yaml?hello=world&foo=bar"}
+	filesToProcess, err := files.NewSortedFilesFromPaths(inputPaths, files.SymlinkAllowOpts{true, []string{}})
+
+	require.NoError(t, err)
+
+	assert.Equal(t, filesToProcess[0].RelativePath(), "def.tpltest")
+	assert.Equal(t, filesToProcess[1].RelativePath(), "test.yaml")
+	assert.Equal(t, filesToProcess[1].Description(), "HTTP URL 'https://example.org/test.yaml?hello=world&foo=bar'")
+	assert.Equal(t, filesToProcess[2].RelativePath(), "an/overwritten/path/to/file.yaml")
+	assert.Equal(t, filesToProcess[2].Description(), "HTTP URL 'https://example.org/test.yaml?hello=world&foo=bar'")
+}
diff --git a/pkg/files/sources.go b/pkg/files/sources.go
index 9c01f945..47ec54e3 100644
--- a/pkg/files/sources.go
+++ b/pkg/files/sources.go
@@ -97,7 +97,9 @@ func (s HTTPSource) Description() string {
 	return fmt.Sprintf("HTTP URL '%s'", s.url)
 }
 
-func (s HTTPSource) RelativePath() (string, error) { return path.Base(s.url), nil }
+func (s HTTPSource) RelativePath() (string, error) {
+	return path.Base(strings.Split(s.url, "?")[0]), nil
+}
 
 func (s HTTPSource) Bytes() ([]byte, error) {
 	resp, err := s.Client.Get(s.url)