diff --git a/src/sagemaker/workflow/utilities.py b/src/sagemaker/workflow/utilities.py
index 3e77465ff6..16a832a14f 100644
--- a/src/sagemaker/workflow/utilities.py
+++ b/src/sagemaker/workflow/utilities.py
@@ -15,6 +15,7 @@
 
 from typing import List, Sequence, Union
 import hashlib
+from urllib.parse import unquote, urlparse
 
 from sagemaker.workflow.entities import (
     Entity,
@@ -50,6 +51,8 @@ def hash_file(path: str) -> str:
     """
     BUF_SIZE = 65536  # read in 64KiB chunks
     md5 = hashlib.md5()
+    if path.lower().startswith("file://"):
+        path = unquote(urlparse(path).path)
     with open(path, "rb") as f:
         while True:
             data = f.read(BUF_SIZE)
diff --git a/tests/unit/sagemaker/workflow/test_utilities.py b/tests/unit/sagemaker/workflow/test_utilities.py
new file mode 100644
index 0000000000..d128d8b31d
--- /dev/null
+++ b/tests/unit/sagemaker/workflow/test_utilities.py
@@ -0,0 +1,31 @@
+# Copyright Amazon.com, Inc. or its affiliates. All Rights Reserved.
+#
+# Licensed under the Apache License, Version 2.0 (the "License"). You
+# may not use this file except in compliance with the License. A copy of
+# the License is located at
+#
+#     http://aws.amazon.com/apache2.0/
+#
+# or in the "license" file accompanying this file. This file is
+# distributed on an "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF
+# ANY KIND, either express or implied. See the License for the specific
+# language governing permissions and limitations under the License.
+# language governing permissions and limitations under the License.
+from __future__ import absolute_import
+
+import tempfile
+from sagemaker.workflow.utilities import hash_file
+
+
+def test_hash_file():
+    with tempfile.NamedTemporaryFile() as tmp:
+        tmp.write("hashme".encode())
+        hash = hash_file(tmp.name)
+        assert hash == "d41d8cd98f00b204e9800998ecf8427e"
+
+
+def test_hash_file_uri():
+    with tempfile.NamedTemporaryFile() as tmp:
+        tmp.write("hashme".encode())
+        hash = hash_file(f"file:///{tmp.name}")
+        assert hash == "d41d8cd98f00b204e9800998ecf8427e"