Following exception is thrown when configuring from JPA and 'META-INF/persistence.xml' URL contains blank spaces that are not valid when trying to convert URL to URI (URL.toURI()). Problem is actually with Hibernate Entity Manager which should take care of this by replacing blank spaces with "%20". Malformed url: file:C:/Documents and Settings/userhome/IdeaProjects/hibero_demo/MyEjb/exploded java.net.URISyntaxException: Illegal character in opaque part at index 17: file:C:/Documents and Settings/userhome/IdeaProjects/hibero_demo/MyEjb/exploded at java.net.URI$Parser.fail(URI.java:2816) at java.net.URI$Parser.checkChars(URI.java:2989) at java.net.URI$Parser.parse(URI.java:3026) at java.net.URI.<init>(URI.java:578) at java.net.URL.toURI(URL.java:916) at org.hibernate.ejb.packaging.ExplodedJarVisitor.doProcessElements(ExplodedJarVisitor.java:31) at org.hibernate.ejb.packaging.JarVisitor.getMatchingEntries(JarVisitor.java:215) at org.hibernate.ejb.Ejb3Configuration.addMetadataFromVisitor(Ejb3Configuration.java:253) at org.hibernate.ejb.Ejb3Configuration.configure(Ejb3Configuration.java:229) at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method) at sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java:39) at sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java:25) at java.lang.reflect.Method.invoke(Method.java:585) at com.betosoftware.hibero.a.eb.a(eb.java:187) at com.betosoftware.hibero.a.eb.b(eb.java:357) at com.betosoftware.hibero.a.eb.a(eb.java:146) at com.betosoftware.hibero.e.a.a.a.r.resolve(r.java:54) at com.betosoftware.hibero.e.a.p.a(p.java:8) at com.betosoftware.hibero.e.a.a.a.r.a(r.java:19) at com.betosoftware.hibero.e.a.p.annotate(p.java:6) at com.intellij.codeInsight.daemon.impl.analysis.HighlightVisitorImpl.visitElement(HighlightVisitorImpl.java:119) at com.intellij.extapi.psi.PsiElementBase.accept(PsiElementBase.java:122) at com.intellij.codeInsight.daemon.impl.analysis.HighlightVisitorImpl.visit(HighlightVisitorImpl.java:17) at com.intellij.codeInsight.daemon.impl.GeneralHighlightingPass.a(GeneralHighlightingPass.java:160) at com.intellij.codeInsight.daemon.impl.GeneralHighlightingPass.doCollectInformation(GeneralHighlightingPass.java:66) at com.intellij.codeHighlighting.TextEditorHighlightingPass.collectInformation(TextEditorHighlightingPass.java:59) at com.intellij.codeInsight.daemon.impl.UpdateThread$2.run(UpdateThread.java:1) at com.intellij.openapi.application.impl.ApplicationImpl.runReadAction(ApplicationImpl.java:308) at com.intellij.codeInsight.daemon.impl.UpdateThread.a(UpdateThread.java:29) at com.intellij.codeInsight.daemon.impl.UpdateThread.access$100(UpdateThread.java:23) at com.intellij.codeInsight.daemon.impl.UpdateThread$1.run(UpdateThread.java:3) at com.intellij.openapi.progress.impl.ProgressManagerImpl.runProcess(ProgressManagerImpl.java:38) at com.intellij.codeInsight.daemon.impl.UpdateThread.run(UpdateThread.java:35)