diff --git a/plugins/importer-curl/src/index.ts b/plugins/importer-curl/src/index.ts
index 825208f7..49834ecc 100644
--- a/plugins/importer-curl/src/index.ts
+++ b/plugins/importer-curl/src/index.ts
@@ -55,6 +55,34 @@ export const plugin: PluginDefinition = {
   },
 };
 
+/**
+ * Decodes escape sequences in shell $'...' strings
+ * Handles Unicode escape sequences (\uXXXX) and common escape codes
+ */
+function decodeShellString(str: string): string {
+  return str
+    .replace(/\\u([0-9a-fA-F]{4})/g, (_, hex) => String.fromCharCode(parseInt(hex, 16)))
+    .replace(/\\x([0-9a-fA-F]{2})/g, (_, hex) => String.fromCharCode(parseInt(hex, 16)))
+    .replace(/\\n/g, '\n')
+    .replace(/\\r/g, '\r')
+    .replace(/\\t/g, '\t')
+    .replace(/\\'/g, "'")
+    .replace(/\\"/g, '"')
+    .replace(/\\\\/g, '\\');
+}
+
+/**
+ * Checks if a string might contain escape sequences that need decoding
+ * If so, decodes them; otherwise returns the string as-is
+ */
+function maybeDecodeEscapeSequences(str: string): string {
+  // Check if the string contains escape sequences that shell-quote might not handle
+  if (str.includes('\\u') || str.includes('\\x')) {
+    return decodeShellString(str);
+  }
+  return str;
+}
+
 export function convertCurl(rawData: string) {
   if (!rawData.match(/^\s*curl /)) {
     return null;
@@ -86,9 +114,11 @@ export function convertCurl(rawData: string) {
   for (const parseEntry of normalizedParseEntries) {
     if (typeof parseEntry === 'string') {
       if (parseEntry.startsWith('$')) {
-        currentCommand.push(parseEntry.slice(1));
+        // Handle $'...' strings from shell-quote - decode escape sequences
+        currentCommand.push(decodeShellString(parseEntry.slice(1)));
       } else {
-        currentCommand.push(parseEntry);
+        // Decode escape sequences that shell-quote might not handle
+        currentCommand.push(maybeDecodeEscapeSequences(parseEntry));
       }
       continue;
     }
@@ -108,7 +138,7 @@ export function convertCurl(rawData: string) {
 
     if (op?.startsWith('$')) {
       // Handle the case where literal like -H $'Header: \'Some Quoted Thing\''
-      const str = op.slice(2, op.length - 1).replace(/\\'/g, "'");
+      const str = decodeShellString(op.slice(2, op.length - 1));
 
       currentCommand.push(str);
       continue;
diff --git a/plugins/importer-curl/tests/index.test.ts b/plugins/importer-curl/tests/index.test.ts
index fb398095..71e8cac1 100644
--- a/plugins/importer-curl/tests/index.test.ts
+++ b/plugins/importer-curl/tests/index.test.ts
@@ -391,6 +391,56 @@ describe('importer-curl', () => {
       },
     });
   });
+
+  test('Imports data with Unicode escape sequences', () => {
+    expect(
+      convertCurl(
+        `curl 'https://yaak.app' -H 'Content-Type: application/json' --data-raw $'{"query":"SearchQueryInput\\u0021"}' -X POST`,
+      ),
+    ).toEqual({
+      resources: {
+        workspaces: [baseWorkspace()],
+        httpRequests: [
+          baseRequest({
+            url: 'https://yaak.app',
+            method: 'POST',
+            headers: [{ name: 'Content-Type', value: 'application/json', enabled: true }],
+            bodyType: 'application/json',
+            body: { text: '{"query":"SearchQueryInput!"}' },
+          }),
+        ],
+      },
+    });
+  });
+
+  test('Imports data with multiple escape sequences', () => {
+    expect(
+      convertCurl(
+        `curl 'https://yaak.app' --data-raw $'Line1\\nLine2\\tTab\\u0021Exclamation' -X POST`,
+      ),
+    ).toEqual({
+      resources: {
+        workspaces: [baseWorkspace()],
+        httpRequests: [
+          baseRequest({
+            url: 'https://yaak.app',
+            method: 'POST',
+            bodyType: 'application/x-www-form-urlencoded',
+            body: {
+              form: [{ name: 'Line1\nLine2\tTab!Exclamation', value: '', enabled: true }],
+            },
+            headers: [
+              {
+                enabled: true,
+                name: 'Content-Type',
+                value: 'application/x-www-form-urlencoded',
+              },
+            ],
+          }),
+        ],
+      },
+    });
+  });
 });
 
 const idCount: Partial<Record<string, number>> = {};