diff --git a/build/org.eclipse.cdt.managedbuilder.gnu.ui/src/org/eclipse/cdt/managedbuilder/gnu/cygwin/GnuCygwinConfigurationEnvironmentSupplier.java b/build/org.eclipse.cdt.managedbuilder.gnu.ui/src/org/eclipse/cdt/managedbuilder/gnu/cygwin/GnuCygwinConfigurationEnvironmentSupplier.java
index 29752c37cfe..e9685078152 100644
--- a/build/org.eclipse.cdt.managedbuilder.gnu.ui/src/org/eclipse/cdt/managedbuilder/gnu/cygwin/GnuCygwinConfigurationEnvironmentSupplier.java
+++ b/build/org.eclipse.cdt.managedbuilder.gnu.ui/src/org/eclipse/cdt/managedbuilder/gnu/cygwin/GnuCygwinConfigurationEnvironmentSupplier.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2005, 2010 Intel Corporation and others.
+ * Copyright (c) 2005, 2011 Intel Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -22,27 +22,50 @@ import org.eclipse.cdt.managedbuilder.internal.envvar.BuildEnvVar;
  */
 public class GnuCygwinConfigurationEnvironmentSupplier implements
 		IConfigurationEnvironmentVariableSupplier {
+	
+	private static final String PATH = "PATH"; //$NON-NLS-1$
+	private static final String DELIMITER_UNIX = ":"; //$NON-NLS-1$
+	private static final String PROPERTY_DELIMITER = "path.separator"; //$NON-NLS-1$
+	private static final String PROPERTY_OSNAME = "os.name"; //$NON-NLS-1$
+
+	private static final String LANG = "LANG"; //$NON-NLS-1$
+	private static final String LC_ALL = "LC_ALL"; //$NON-NLS-1$
+	private static final String LC_MESSAGES = "LC_MESSAGES"; //$NON-NLS-1$
 
-	static final String VARNAME = "PATH";        //$NON-NLS-1$
-	static final String DELIMITER_UNIX = ":";    //$NON-NLS-1$
-	static final String PROPERTY_DELIMITER = "path.separator"; //$NON-NLS-1$
-	static final String PROPERTY_OSNAME    = "os.name"; //$NON-NLS-1$
 	/* (non-Javadoc)
 	 * @see org.eclipse.cdt.managedbuilder.envvar.IConfigurationEnvironmentVariableSupplier#getVariable(java.lang.String, org.eclipse.cdt.managedbuilder.core.IConfiguration, org.eclipse.cdt.managedbuilder.envvar.IEnvironmentVariableProvider)
 	 */
 	public IBuildEnvironmentVariable getVariable(String variableName,
 			IConfiguration configuration, IEnvironmentVariableProvider provider) {
+		
+		if (variableName == null)
+			return null;
 
 		if (!System.getProperty(PROPERTY_OSNAME).toLowerCase().startsWith("windows ")) //$NON-NLS-1$ 
 			return null;
 		
-		if (variableName == null) return null;
-		if (!VARNAME.equalsIgnoreCase(variableName)) return null;
-		
-		String p = CygwinPathResolver.getBinPath();
-		if (p != null) 
-			return new BuildEnvVar(VARNAME, p.replace('/','\\'), IBuildEnvironmentVariable.ENVVAR_PREPEND, System.getProperty(PROPERTY_DELIMITER, DELIMITER_UNIX));
-		return null;	
+		if (variableName.equalsIgnoreCase(PATH)) {
+			String p = CygwinPathResolver.getBinPath();
+			if (p != null)
+				return new BuildEnvVar(PATH, p.replace('/','\\'), IBuildEnvironmentVariable.ENVVAR_PREPEND, System.getProperty(PROPERTY_DELIMITER, DELIMITER_UNIX));
+		} else if (variableName.equalsIgnoreCase(LANG)) {
+			// Workaround for not being able to select encoding for CDT console -> change codeset to Latin1
+			String langValue = System.getenv(LANG); 
+			if (langValue == null || langValue.length() == 0)
+				langValue = System.getenv(LC_ALL);
+			if (langValue == null || langValue.length() == 0)
+				langValue = System.getenv(LC_MESSAGES);
+			if (langValue != null && langValue.length() > 0)
+				// langValue is [language[_territory][.codeset][@modifier]], i.e. "en_US.UTF-8@dict"
+				// we replace codeset with Latin1 as CDT console garbles UTF
+				// and ignore modifier which is not used by LANG
+				langValue = langValue.replaceFirst("([^.@]*)(\\..*)?(@.*)?", "$1.ISO-8859-1"); //$NON-NLS-1$ //$NON-NLS-2$
+			else
+				langValue = "C.ISO-8859-1"; //$NON-NLS-1$
+
+			return new BuildEnvVar(LANG, langValue); 
+		}
+		return null;
 	}
 
 	/* (non-Javadoc)
@@ -50,10 +73,14 @@ public class GnuCygwinConfigurationEnvironmentSupplier implements
 	 */
 	public IBuildEnvironmentVariable[] getVariables(
 			IConfiguration configuration, IEnvironmentVariableProvider provider) {
+
+		IBuildEnvironmentVariable varLang = getVariable(LANG, configuration, provider);
+		IBuildEnvironmentVariable varPath = getVariable(PATH, configuration, provider);
 		
-		IBuildEnvironmentVariable[] tmp = new IBuildEnvironmentVariable[1];   
-		tmp[0] = getVariable(VARNAME, configuration, provider);
-		if (tmp[0] != null) return tmp; 
-		return null;
+		if (varPath != null) {
+			return new IBuildEnvironmentVariable[] {varLang, varPath};
+		} else {
+			return new IBuildEnvironmentVariable[] {varLang};
+		}
 	}
 }