diff --git a/.chronus/changes/fix-set-x-ms-skip-url-encoding-2024-11-26-17-14-53.md b/.chronus/changes/fix-set-x-ms-skip-url-encoding-2024-11-26-17-14-53.md
new file mode 100644
index 0000000000..7cf606c5b6
--- /dev/null
+++ b/.chronus/changes/fix-set-x-ms-skip-url-encoding-2024-11-26-17-14-53.md
@@ -0,0 +1,7 @@
+---
+changeKind: fix
+packages:
+  - "@typespec/rest"
+---
+
+In some scenarios, the options for the `@path` decorator do not accurately reflect the provided parameters, including the `#{allowReserved: true}` which is the `x-ms-skip-url-encoding` option. This change addresses and fixes this issue.
diff --git a/packages/rest/src/resource.ts b/packages/rest/src/resource.ts
index 13de2131a4..d65d1f3d61 100644
--- a/packages/rest/src/resource.ts
+++ b/packages/rest/src/resource.ts
@@ -116,16 +116,19 @@ function cloneKeyProperties(context: DecoratorContext, target: Model, resourceTy
       // filtering. NOTE: Check for name equality instead of function equality
       // to deal with multiple copies of core being used.
       ...keyProperty.decorators.filter((d) => d.decorator.name !== $visibility.name),
-      {
-        decorator: $path,
-        args: [],
-      },
       {
         decorator: $resourceTypeForKeyParam,
         args: [{ node: target.node, value: resourceType, jsValue: resourceType }],
       },
     ];
 
+    if (!keyProperty.decorators.some((d) => d.decorator.name === $path.name)) {
+      decorators.push({
+        decorator: $path,
+        args: [],
+      });
+    }
+
     // Clone the key property and ensure that an optional key property doesn't
     // become an optional path parameter
     const newProp = program.checker.cloneType(keyProperty, {