diff --git a/src/filewidgets/kurlnavigator.cpp b/src/filewidgets/kurlnavigator.cpp
--- a/src/filewidgets/kurlnavigator.cpp
+++ b/src/filewidgets/kurlnavigator.cpp
@@ -1049,9 +1049,9 @@
     // code locationUrl() and url become the same URLs
     QUrl firstChildUrl = KIO::UrlUtil::firstChildUrl(locationUrl(), url);
 
-    if ((url.scheme() == QLatin1String("tar")) || (url.scheme() == QLatin1String("zip"))) {
-        // The URL represents a tar- or zip-file. Check whether
-        // the URL is really part of the tar- or zip-file, otherwise
+    if ((url.scheme() == QLatin1String("tar")) || (url.scheme() == QLatin1String("zip")) || (url.scheme() == QLatin1String("krarc"))) {
+        // The URL represents a tar- or zip-file, or an archive file supported by krarc.
+        // Check whether the URL is really part of the archive file, otherwise
         // replace it by the local path again.
         bool insideCompressedPath = d->isCompressedPath(url);
         if (!insideCompressedPath) {
@@ -1067,7 +1067,7 @@
             }
         }
         if (!insideCompressedPath) {
-            // drop the tar: or zip: protocol since we are not
+            // drop the tar: or zip: or krarc: protocol since we are not
             // inside the compressed path
             url.setScheme(QStringLiteral("file"));
             firstChildUrl.setScheme(QStringLiteral("file"));