diff --git a/django/templatetags/cache.py b/django/templatetags/cache.py
index 07bd590fba3..9c6ca768541 100644
--- a/django/templatetags/cache.py
+++ b/django/templatetags/cache.py
@@ -2,6 +2,7 @@ from django.template import Library, Node, TemplateSyntaxError, Variable, Variab
 from django.template import resolve_variable
 from django.core.cache import cache
 from django.utils.encoding import force_unicode
+from django.utils.http import urlquote
 
 register = Library()
 
@@ -22,7 +23,7 @@ class CacheNode(Node):
         except (ValueError, TypeError):
             raise TemplateSyntaxError('"cache" tag got a non-integer timeout value: %r' % expire_time)
         # Build a unicode key for this fragment and all vary-on's.
-        cache_key = u':'.join([self.fragment_name] + [force_unicode(resolve_variable(var, context)) for var in self.vary_on])
+        cache_key = u':'.join([self.fragment_name] + [urlquote(resolve_variable(var, context)) for var in self.vary_on])
         value = cache.get(cache_key)
         if value is None:
             value = self.nodelist.render(context)
diff --git a/tests/regressiontests/templates/tests.py b/tests/regressiontests/templates/tests.py
index 96e1d662c67..0eb5a2a5866 100644
--- a/tests/regressiontests/templates/tests.py
+++ b/tests/regressiontests/templates/tests.py
@@ -917,6 +917,9 @@ class Templates(unittest.TestCase):
             'cache14': ('{% load cache %}{% cache foo bar %}{% endcache %}', {'foo': 'fail'}, template.TemplateSyntaxError),
             'cache15': ('{% load cache %}{% cache foo bar %}{% endcache %}', {'foo': []}, template.TemplateSyntaxError),
 
+            # Regression test for #7460.
+            'cache16': ('{% load cache %}{% cache 1 foo bar %}{% endcache %}', {'foo': 'foo', 'bar': 'with spaces'}, ''),
+
             ### AUTOESCAPE TAG ##############################################
             'autoescape-tag01': ("{% autoescape off %}hello{% endautoescape %}", {}, "hello"),
             'autoescape-tag02': ("{% autoescape off %}{{ first }}{% endautoescape %}", {"first": "<b>hello</b>"}, "<b>hello</b>"),