diff --git a/scm-plugins/scm-hg-plugin/src/main/java/sonia/scm/repository/spi/HgCommandContext.java b/scm-plugins/scm-hg-plugin/src/main/java/sonia/scm/repository/spi/HgCommandContext.java
index 073cef716d..9d747b2fbc 100644
--- a/scm-plugins/scm-hg-plugin/src/main/java/sonia/scm/repository/spi/HgCommandContext.java
+++ b/scm-plugins/scm-hg-plugin/src/main/java/sonia/scm/repository/spi/HgCommandContext.java
@@ -38,7 +38,7 @@ package sonia.scm.repository.spi;
 import com.aragost.javahg.Repository;
 import com.aragost.javahg.RepositoryConfiguration;
 
-import com.google.common.base.Charsets;
+import com.google.common.base.Strings;
 
 import org.slf4j.Logger;
 import org.slf4j.LoggerFactory;
@@ -61,6 +61,9 @@ import java.nio.charset.Charset;
 public class HgCommandContext implements Closeable
 {
 
+  /** Field description */
+  private static final String PROPERTY_ENCODING = "hg.encoding";
+
   /**
    * the logger for HgCommandContext
    */
@@ -74,12 +77,20 @@ public class HgCommandContext implements Closeable
    *
    *
    * @param config
+   * @param repository
    * @param directory
    */
-  public HgCommandContext(HgConfig config, File directory)
+  HgCommandContext(HgConfig config, sonia.scm.repository.Repository repository,
+    File directory)
   {
     this.config = config;
     this.directory = directory;
+    encoding = repository.getProperty(PROPERTY_ENCODING);
+
+    if (Strings.isNullOrEmpty(encoding))
+    {
+      encoding = config.getEncoding();
+    }
   }
 
   //~--- methods --------------------------------------------------------------
@@ -145,6 +156,9 @@ public class HgCommandContext implements Closeable
   /** Field description */
   private File directory;
 
+  /** Field description */
+  private String encoding;
+
   /** Field description */
   private Repository repository;
 }
diff --git a/scm-plugins/scm-hg-plugin/src/main/java/sonia/scm/repository/spi/HgRepositoryServiceProvider.java b/scm-plugins/scm-hg-plugin/src/main/java/sonia/scm/repository/spi/HgRepositoryServiceProvider.java
index f233589292..163be0c119 100644
--- a/scm-plugins/scm-hg-plugin/src/main/java/sonia/scm/repository/spi/HgRepositoryServiceProvider.java
+++ b/scm-plugins/scm-hg-plugin/src/main/java/sonia/scm/repository/spi/HgRepositoryServiceProvider.java
@@ -83,7 +83,7 @@ public class HgRepositoryServiceProvider extends RepositoryServiceProvider
     this.handler = handler;
     this.repository = repository;
     this.repositoryDirectory = handler.getDirectory(repository);
-    this.context = new HgCommandContext(handler.getConfig(),
+    this.context = new HgCommandContext(handler.getConfig(), repository,
       repositoryDirectory);
   }
 
diff --git a/scm-plugins/scm-hg-plugin/src/test/java/sonia/scm/repository/spi/AbstractHgCommandTestBase.java b/scm-plugins/scm-hg-plugin/src/test/java/sonia/scm/repository/spi/AbstractHgCommandTestBase.java
index 3e274915d4..6e3ad3908e 100644
--- a/scm-plugins/scm-hg-plugin/src/test/java/sonia/scm/repository/spi/AbstractHgCommandTestBase.java
+++ b/scm-plugins/scm-hg-plugin/src/test/java/sonia/scm/repository/spi/AbstractHgCommandTestBase.java
@@ -44,6 +44,8 @@ import sonia.scm.io.FileSystem;
 import sonia.scm.repository.HgContextProvider;
 import sonia.scm.repository.HgRepositoryHandler;
 import sonia.scm.repository.HgTestUtil;
+import sonia.scm.repository.Repository;
+import sonia.scm.repository.RepositoryTestData;
 import sonia.scm.repository.TempSCMContextProvider;
 import sonia.scm.store.MemoryStoreFactory;
 
@@ -99,7 +101,8 @@ public class AbstractHgCommandTestBase extends ZippedRepositoryTestBase
 
     HgTestUtil.checkForSkip(handler);
 
-    cmdContext = new HgCommandContext(handler.getConfig(), repositoryDirectory);
+    cmdContext = new HgCommandContext(handler.getConfig(),
+      RepositoryTestData.createHeartOfGold(), repositoryDirectory);
   }
 
   //~--- get methods ----------------------------------------------------------