diff --git a/CHANGELOG.md b/CHANGELOG.md
index e5f25414..e0631fda 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -9,6 +9,7 @@ project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
 ### Fixed
 
+- The IPython `%dotenv` magic now accepts quoted file paths containing spaces, including relative, absolute, and home-directory paths.
 - Fix a package build deprecation warning caused by a non-string `license` value in `pyproject.toml` by [@kurtmckee] in [#648]
 - `set_key`, `unset_key` and the `dotenv set`/`unset` commands now name the `.env` path instead of an internal temporary file when its directory is missing or not writable, and the CLI prints a short error and exits with code 2 instead of a traceback by [@jamalkamaladdin] in [#711]
 - `set_key` and `unset_key` no longer leave a `.tmp_*` file behind on Windows when writing a read-only `.env` fails, and the error raised is the one from the failed write rather than from cleaning up the temporary file by [@MohammedAlkindi] in [#686]
diff --git a/src/dotenv/ipython.py b/src/dotenv/ipython.py
index 4e7edbbf..013aad91 100644
--- a/src/dotenv/ipython.py
+++ b/src/dotenv/ipython.py
@@ -1,3 +1,5 @@
+import sys
+
 from IPython.core.magic import Magics, line_magic, magics_class  # type: ignore
 from IPython.core.magic_arguments import (
     argument,
@@ -35,6 +37,15 @@ def dotenv(self, line):
         args = parse_argstring(self.dotenv, line)
         # Locate the .env file
         dotenv_path = args.dotenv_path
+        # IPython's POSIX parser keeps grouping quotes. On Windows they are
+        # already removed, and any remaining apostrophes are part of the path.
+        if (
+            sys.platform != "win32"
+            and len(dotenv_path) >= 2
+            and dotenv_path[0] == dotenv_path[-1]
+            and dotenv_path[0] in ("'", '"')
+        ):
+            dotenv_path = dotenv_path[1:-1]
         try:
             dotenv_path = find_dotenv(dotenv_path, True, True)
         except IOError:
diff --git a/tests/test_ipython.py b/tests/test_ipython.py
index 93bffd66..ac948d3f 100644
--- a/tests/test_ipython.py
+++ b/tests/test_ipython.py
@@ -76,3 +76,95 @@ def test_ipython_path_expands_user(tmp_path, monkeypatch):
     ipshell.run_line_magic("dotenv", "~/.env")
 
     assert os.environ["dotenv_ipython_home"] == "b"
+
+
+@pytest.mark.parametrize("quote", ['"', "'"])
+@pytest.mark.parametrize("path_kind", ["relative", "absolute", "home"])
+def test_ipython_quoted_path(tmp_path, monkeypatch, quote, path_kind):
+    from IPython.core.error import UsageError
+    from IPython.terminal.embed import InteractiveShellEmbed
+
+    directory = tmp_path / "my project"
+    directory.mkdir()
+    dotenv_file = directory / "app.env"
+    dotenv_file.write_text("DOTENV_QUOTED_PATH=loaded\n")
+    monkeypatch.chdir(tmp_path)
+    monkeypatch.setenv("HOME", str(tmp_path))
+    monkeypatch.setenv("USERPROFILE", str(tmp_path))
+    monkeypatch.setenv("DOTENV_QUOTED_PATH", "original")
+    paths = {
+        "relative": "my project/app.env",
+        "absolute": str(dotenv_file),
+        "home": "~/my project/app.env",
+    }
+
+    ipshell = InteractiveShellEmbed()
+    ipshell.run_line_magic("load_ext", "dotenv")
+    if sys.platform == "win32" and quote == "'":
+        # CommandLineToArgvW does not use single quotes to group arguments.
+        with pytest.raises(UsageError):
+            ipshell.run_line_magic("dotenv", f"-o {quote}{paths[path_kind]}{quote}")
+        assert os.environ["DOTENV_QUOTED_PATH"] == "original"
+        return
+    ipshell.run_line_magic("dotenv", f"-o {quote}{paths[path_kind]}{quote}")
+
+    assert os.environ["DOTENV_QUOTED_PATH"] == "loaded"
+
+
+@pytest.mark.parametrize(
+    "argument,expected",
+    [
+        (r'"C:\Users\my project\.env"', r"C:\Users\my project\.env"),
+        (r"'C:\Users\my project\.env'", r"C:\Users\my project\.env"),
+        (r"C:\Users\project\.env", r"C:\Users\project\.env"),
+        ('"my project\'s/.env"', "my project's/.env"),
+        ("project's/.env", "project's/.env"),
+    ],
+)
+def test_ipython_path_preserves_literal_characters(argument, expected):
+    from IPython.core.error import UsageError
+
+    from dotenv.ipython import IPythonDotEnv
+
+    with mock.patch("dotenv.ipython.find_dotenv", return_value=expected) as find:
+        with mock.patch("dotenv.ipython.load_dotenv") as load:
+            if sys.platform == "win32" and argument.startswith("'"):
+                with pytest.raises(UsageError):
+                    IPythonDotEnv().dotenv(argument)
+                find.assert_not_called()
+                load.assert_not_called()
+                return
+            IPythonDotEnv().dotenv(argument)
+
+    find.assert_called_once_with(expected, True, True)
+    load.assert_called_once_with(expected, verbose=False, override=False)
+
+
+def test_ipython_path_with_literal_outer_apostrophes(tmp_path, monkeypatch):
+    from IPython.terminal.embed import InteractiveShellEmbed
+
+    (tmp_path / "'app.env'").write_text("DOTENV_APOSTROPHE_PATH=loaded\n")
+    monkeypatch.chdir(tmp_path)
+    monkeypatch.delenv("DOTENV_APOSTROPHE_PATH", raising=False)
+    ipshell = InteractiveShellEmbed()
+    ipshell.run_line_magic("load_ext", "dotenv")
+    ipshell.run_line_magic("dotenv", "\"'app.env'\"")
+
+    assert os.environ["DOTENV_APOSTROPHE_PATH"] == "loaded"
+
+
+@pytest.mark.parametrize(
+    "path", ["'app.env'", "my project/app.env", r"C:\Users\app.env"]
+)
+def test_ipython_windows_parsed_path_is_unchanged(path):
+    from dotenv.ipython import IPythonDotEnv
+
+    args = mock.Mock(dotenv_path=path, verbose=False, override=False)
+    with mock.patch("dotenv.ipython.sys", platform="win32", create=True):
+        with mock.patch("dotenv.ipython.parse_argstring", return_value=args):
+            with mock.patch("dotenv.ipython.find_dotenv", return_value=path) as find:
+                with mock.patch("dotenv.ipython.load_dotenv") as load:
+                    IPythonDotEnv().dotenv("")
+
+    find.assert_called_once_with(path, True, True)
+    load.assert_called_once_with(path, verbose=False, override=False)