diff --git a/terminal/plugins/org.eclipse.tm.terminal.view.ui/src/org/eclipse/tm/terminal/view/ui/streams/InputStreamMonitor.java b/terminal/plugins/org.eclipse.tm.terminal.view.ui/src/org/eclipse/tm/terminal/view/ui/streams/InputStreamMonitor.java
index 3713ee36b62..4ec791360bb 100644
--- a/terminal/plugins/org.eclipse.tm.terminal.view.ui/src/org/eclipse/tm/terminal/view/ui/streams/InputStreamMonitor.java
+++ b/terminal/plugins/org.eclipse.tm.terminal.view.ui/src/org/eclipse/tm/terminal/view/ui/streams/InputStreamMonitor.java
@@ -339,11 +339,8 @@ public class InputStreamMonitor extends OutputStream implements IDisposable {
 		Assert.isNotNull(bytes);
 
 		if (replacement != NO_CHANGE && len > 0) {
-			String origText = new String(bytes, off, len);
+			String origText = new String(bytes, off, len, terminalControl.getCharset());
 			String text = null;
-			//
-			// TODO: check whether this is correct! new String(byte[], int, int) always uses the default
-			//       encoding!
 
 			if (replacement == CHANGE_CR_TO_LF) {
 				text = origText.replace('\r', '\n');
@@ -356,7 +353,7 @@ public class InputStreamMonitor extends OutputStream implements IDisposable {
 			}
 
 			if (text != null && !origText.equals(text)) {
-				bytes = text.getBytes();
+				bytes = text.getBytes(terminalControl.getCharset());
 			}
 		}
 
diff --git a/terminal/plugins/org.eclipse.tm.terminal.view.ui/src/org/eclipse/tm/terminal/view/ui/streams/OutputStreamMonitor.java b/terminal/plugins/org.eclipse.tm.terminal.view.ui/src/org/eclipse/tm/terminal/view/ui/streams/OutputStreamMonitor.java
index 23621600969..36848d49620 100644
--- a/terminal/plugins/org.eclipse.tm.terminal.view.ui/src/org/eclipse/tm/terminal/view/ui/streams/OutputStreamMonitor.java
+++ b/terminal/plugins/org.eclipse.tm.terminal.view.ui/src/org/eclipse/tm/terminal/view/ui/streams/OutputStreamMonitor.java
@@ -274,8 +274,7 @@ public class OutputStreamMonitor implements IDisposable {
 		// Remember if the text got changed.
 		boolean changed = false;
 
-		// How can me make sure that we don't mess with the encoding here?
-		String text = new String(byteBuffer, 0, bytesRead);
+		String text = new String(byteBuffer, 0, bytesRead, terminalControl.getCharset());
 
 		// Shift-In (14) and Shift-Out(15) confuses the terminal widget
 		if (text.indexOf(14) != -1 || text.indexOf(15) != -1) {
@@ -312,7 +311,7 @@ public class OutputStreamMonitor implements IDisposable {
 
 		// If changed, get the new bytes array
 		if (changed) {
-			byteBuffer = text.getBytes();
+			byteBuffer = text.getBytes(terminalControl.getCharset());
 			bytesRead = byteBuffer.length;
 		}