diff --git a/pip/download.py b/pip/download.py
index b47627ecf9d..50e02cb264c 100644
--- a/pip/download.py
+++ b/pip/download.py
@@ -296,7 +296,7 @@ def unpack_vcs_link(link, location, only_download=False):
 
 
 def unpack_file_url(link, location):
-    source = url_to_path(link.url)
+    source = url_to_path(link.url_without_fragment)
     content_type = mimetypes.guess_type(source)[0]
     if os.path.isdir(source):
         # delete the location since shutil will create it again :(
diff --git a/pip/index.py b/pip/index.py
index 64059bc235e..bc5c7976ef9 100644
--- a/pip/index.py
+++ b/pip/index.py
@@ -648,7 +648,7 @@ def url_without_fragment(self):
         scheme, netloc, path, query, fragment = urlparse.urlsplit(self.url)
         return urlparse.urlunsplit((scheme, netloc, path, query, None))
 
-    _egg_fragment_re = re.compile(r'#egg=([^&]*)')
+    _egg_fragment_re = re.compile(r'#[^#]*egg=([^&]*)')
 
     @property
     def egg_fragment(self):
@@ -657,7 +657,7 @@ def egg_fragment(self):
             return None
         return match.group(1)
 
-    _hash_re = re.compile(r'(sha1|sha224|sha384|sha256|sha512|md5)=([a-f0-9]+)')
+    _hash_re = re.compile(r'#[^#]*(sha1|sha224|sha384|sha256|sha512|md5)=([a-f0-9]+)')
 
     @property
     def hash(self):
diff --git a/pip/req.py b/pip/req.py
index 16c3cff6abc..7bde575b646 100644
--- a/pip/req.py
+++ b/pip/req.py
@@ -106,11 +106,11 @@ def from_line(cls, name, comes_from=None):
         # If the line has an egg= definition, but isn't editable, pull the requirement out.
         # Otherwise, assume the name is the req for the non URL/path/archive case.
         if link and req is None:
-            url = link.url_without_fragment
-            req = link.egg_fragment  #when fragment is None, this will become an 'unnamed' requirement
+            url = link.url
+            req = link.egg_fragment  #when egg fragment is None, this will become an 'unnamed' requirement
 
             # Handle relative file URLs
-            if link.scheme == 'file' and re.search(r'\.\./', url):
+            if link.scheme == 'file' and re.search(r'\.\./', link.url_without_fragment):
                 url = path_to_url(os.path.normpath(os.path.abspath(link.path)))
 
         else:
diff --git a/tests/test_index.py b/tests/test_index.py
index 5c78fd7bf77..f92c5be897d 100644
--- a/tests/test_index.py
+++ b/tests/test_index.py
@@ -129,3 +129,33 @@ def test_file_index_url_quoting():
 def test_inflink_greater():
     """Test InfLink compares greater."""
     assert InfLink > Link(object())
+
+
+class TestLink:
+    """Tests for the pip.index.Link"""
+
+    def test_egg_fragment(self):
+        """Test Link egg_fragment property."""
+        url = 'http://test?egg=bogus#egg=test'
+        assert Link(url).egg_fragment == 'test'
+        url = 'http://test?egg=bogus#egg=test&md5=123'
+        assert Link(url).egg_fragment == 'test'
+        url = 'http://test?egg=bogus#md5=123&egg=test'
+        assert Link(url).egg_fragment == 'test'
+
+    def test_hash_name(self):
+        """Test Link hash/hash_name properties."""
+        url = 'http://test?md5=bogus#md5=123'
+        assert Link(url).hash_name == 'md5'
+        assert Link(url).hash == '123'
+        url = 'http://test?md5=bogus#md5=123&egg=test'
+        assert Link(url).hash_name == 'md5'
+        assert Link(url).hash == '123'
+        url = 'http://test?md5=bogus#egg=test&md5=123'
+        assert Link(url).hash_name == 'md5'
+        assert Link(url).hash == '123'
+
+    def test_url_without_fragment(self):
+        """Test Link url_without_fragment property."""
+        url = 'http://test#egg=test&md5=123'
+        assert Link(url).url_without_fragment == 'http://test'
diff --git a/tests/test_install_requirement.py b/tests/test_install_requirement.py
index dc99957dcd8..7a4735abf85 100644
--- a/tests/test_install_requirement.py
+++ b/tests/test_install_requirement.py
@@ -2,9 +2,8 @@
 
 
 def test_url_with_query():
-    """InstallRequirement should strip the fragment, but not the query."""
+    """InstallRequirement should not strip the query."""
     url = 'http://foo.com/?p=bar.git;a=snapshot;h=v0.1;sf=tgz'
     fragment = '#egg=bar'
     req = InstallRequirement.from_line(url + fragment)
-
-    assert req.url == url, req.url
+    assert req.url.startswith(url)
diff --git a/tests/test_requirements.py b/tests/test_requirements.py
index a21478ac6e3..dc81909af3e 100644
--- a/tests/test_requirements.py
+++ b/tests/test_requirements.py
@@ -206,4 +206,28 @@ def test_url_req_case_mismatch():
     assert egg_folder not in result.files_created, str(result)
 
 
+def test_url_req_with_correct_hash_fragment():
+    """
+    Test installing url requirement with correct md5 hash fragment succeeds.
+    """
+    env = reset_env()
+    tar =  'simple-1.0.tar.gz#md5=4bdf78ebb7911f215c1972cf71b378f0&egg=simple'
+    req_url = 'file://' + os.path.join(here, 'packages', tar)
+    result = run_pip('install', req_url)
+    egg_folder = env.site_packages / 'simple-1.0-py%s.egg-info' % pyversion
+    assert egg_folder in result.files_created, str(result)
+
+
+def test_url_req_with_incorrect_hash_fragment():
+    """
+    Test installing url requirement with incorrect md5 hash fragment fails.
+    """
+    env = reset_env()
+    tar =  'simple-1.0.tar.gz#md5=123&egg=simple'
+    req_url = 'file://' + os.path.join(here, 'packages', tar)
+    result = run_pip('install', req_url, expect_error=True, expect_temp=True)
+    'Bad md5 hash' in result.stdout, str(result)
+
+
+