diff --git a/src/main/java/org/springframework/hateoas/TemplateVariables.java b/src/main/java/org/springframework/hateoas/TemplateVariables.java
index eae3e448..fbd32937 100644
--- a/src/main/java/org/springframework/hateoas/TemplateVariables.java
+++ b/src/main/java/org/springframework/hateoas/TemplateVariables.java
@@ -29,9 +29,9 @@ import org.springframework.util.Assert;
  * 
  * @author Oliver Gierke
  */
-public class TemplateVariables implements Iterable<TemplateVariable> {
+public final class TemplateVariables implements Iterable<TemplateVariable> {
 
-	public static TemplateVariables NONE = new TemplateVariables(Collections.<TemplateVariable> emptyList());
+	public static TemplateVariables NONE = new TemplateVariables();
 
 	private final List<TemplateVariable> variables;
 
diff --git a/src/main/java/org/springframework/hateoas/UriTemplate.java b/src/main/java/org/springframework/hateoas/UriTemplate.java
index 74efd6bc..ff3216d3 100644
--- a/src/main/java/org/springframework/hateoas/UriTemplate.java
+++ b/src/main/java/org/springframework/hateoas/UriTemplate.java
@@ -72,7 +72,7 @@ public class UriTemplate implements Iterable<TemplateVariable> {
 			}
 		}
 
-		this.variables = new TemplateVariables(variables);
+		this.variables = variables.isEmpty() ? TemplateVariables.NONE : new TemplateVariables(variables);
 		this.baseUri = template.substring(0, baseUriEndIndex);
 	}
 
@@ -140,7 +140,11 @@ public class UriTemplate implements Iterable<TemplateVariable> {
 	 */
 	public URI expand(Object... parameters) {
 
-		UriComponentsBuilder builder = UriComponentsBuilder.fromPath(baseUri);
+		if (TemplateVariables.NONE.equals(variables)) {
+			return URI.create(baseUri);
+		}
+
+		UriComponentsBuilder builder = UriComponentsBuilder.fromUriString(baseUri);
 		Iterator<Object> iterator = Arrays.asList(parameters).iterator();
 
 		for (TemplateVariable variable : variables) {
@@ -160,8 +164,12 @@ public class UriTemplate implements Iterable<TemplateVariable> {
 	 */
 	public URI expand(Map<String, Object> parameters) {
 
+		if (TemplateVariables.NONE.equals(variables)) {
+			return URI.create(baseUri);
+		}
+
 		Assert.notNull(parameters, "Parameters must not be null!");
-		UriComponentsBuilder builder = UriComponentsBuilder.fromPath(baseUri);
+		UriComponentsBuilder builder = UriComponentsBuilder.fromUriString(baseUri);
 
 		for (TemplateVariable variable : variables) {
 			appendToBuilder(builder, variable, parameters.get(variable.getName()));
diff --git a/src/test/java/org/springframework/hateoas/UriTemplateUnitTest.java b/src/test/java/org/springframework/hateoas/UriTemplateUnitTest.java
index ba1776e3..c205c67d 100644
--- a/src/test/java/org/springframework/hateoas/UriTemplateUnitTest.java
+++ b/src/test/java/org/springframework/hateoas/UriTemplateUnitTest.java
@@ -169,6 +169,14 @@ public class UriTemplateUnitTest {
 		assertThat(new UriTemplate("/foo").expand().toString(), is("/foo"));
 	}
 
+	/**
+	 * @see #137
+	 */
+	@Test
+	public void correctlyExpandsFullUri() {
+		assertThat(new UriTemplate("http://localhost:8080/foo{?bar}").expand().toString(), is("http://localhost:8080/foo"));
+	}
+
 	private static void assertVariables(UriTemplate template, TemplateVariable... variables) {
 
 		assertThat(template.getVariableNames(), hasSize(variables.length));