diff --git a/.yarn/yarn.lock b/.yarn/yarn.lock
index 404b909..3b850b7 100644
--- a/.yarn/yarn.lock
+++ b/.yarn/yarn.lock
@@ -5703,7 +5703,7 @@ __metadata:
   languageName: node
   linkType: hard
 
-"iconv-lite@npm:^0.6.2":
+"iconv-lite@npm:^0.6.2, iconv-lite@npm:^0.6.3":
   version: 0.6.3
   resolution: "iconv-lite@npm:0.6.3"
   dependencies:
@@ -9560,6 +9560,7 @@ __metadata:
     "@vscode/vsce": ^2.18.0
     common: "workspace:*"
     event-stream: ^4.0.1
+    iconv-lite: ^0.6.3
     jsonc-parser: ^3.2.0
     prettier: ^2.6.2
     semver: ^7.3.5
diff --git a/common/src/fileSystemConfig.ts b/common/src/fileSystemConfig.ts
index d5db4b7..cf7b719 100644
--- a/common/src/fileSystemConfig.ts
+++ b/common/src/fileSystemConfig.ts
@@ -117,6 +117,8 @@ export interface FileSystemConfig extends ConnectConfig {
   instantConnection?: boolean;
   /** List of special flags to enable/disable certain fixes/features. Flags are usually used for issues or beta testing. Flags can disappear/change anytime! */
   flags?: string[];
+  /** Specifies the character encoding used for the SSH terminal. If undefined or an unsupported by iconv-lite, UTF-8 will be used */
+  encoding?: string;
   /** Internal property saying where this config comes from. Undefined if this config is merged or something */
   _location?: ConfigLocation;
   /** Internal property keeping track of where this config comes from (including merges) */
diff --git a/package.json b/package.json
index 1629798..b93dc33 100644
--- a/package.json
+++ b/package.json
@@ -429,6 +429,7 @@
     "dependencies": {
         "common": "workspace:*",
         "event-stream": "^4.0.1",
+        "iconv-lite": "^0.6.3",
         "jsonc-parser": "^3.2.0",
         "semver": "^7.3.5",
         "socks": "^2.2.0",
diff --git a/src/pseudoTerminal.ts b/src/pseudoTerminal.ts
index 5debc33..1c76112 100644
--- a/src/pseudoTerminal.ts
+++ b/src/pseudoTerminal.ts
@@ -2,6 +2,7 @@ import type { EnvironmentVariable, FileSystemConfig } from 'common/fileSystemCon
 import * as path from 'path';
 import type { ClientChannel, PseudoTtyOptions } from 'ssh2';
 import * as vscode from 'vscode';
+import * as iconv from 'iconv-lite';
 import { getFlagBoolean } from './flags';
 import type { Connection } from './connection';
 import { Logging, LOGGING_NO_STACKTRACE } from './logging';
@@ -142,6 +143,24 @@ export async function createTerminal(options: TerminalOptions): Promise<SSHPseud
     const onDidClose = new vscode.EventEmitter<number>();
     const onDidOpen = new vscode.EventEmitter<void>();
     let terminal: vscode.Terminal | undefined;
+
+    // Encodes user input (originally UTF-8 in JS string) into the remote encoding, if configured.
+    // Returns a Buffer if encoding is valid, otherwise returns the original string.
+    let encodeTerminalInput: (data: string) => Buffer | string;
+    
+    // Decodes data received from the remote side (as Buffer) into a string using the configured encoding.
+    // If encoding is not set or invalid, defaults to data.toString() (UTF-8).
+    let decodeTerminalOutput: (data: Buffer) => string;
+
+    const encoding = actualConfig.encoding;
+    if (encoding && iconv.encodingExists(encoding)) {
+        encodeTerminalInput  = (data: string) => iconv.encode(data, encoding);
+        decodeTerminalOutput = (data: Buffer) => iconv.decode(data, encoding);
+    } else {
+        encodeTerminalInput  = (data: string) => data; 
+        decodeTerminalOutput = (data: Buffer) => data.toString();
+    }
+
     // Won't actually open the remote terminal until pseudo.open(dims) is called
     const pseudo: SSHPseudoTerminal = {
         status: 'opening',
@@ -241,8 +260,8 @@ export async function createTerminal(options: TerminalOptions): Promise<SSHPseud
                     if (pseudo.status === 'opening') pseudo.status = 'open';
                     onDidOpen.fire();
                 });
-                channel.on('data', chunk => onDidWrite.fire(chunk.toString()));
-                channel.stderr!.on('data', chunk => onDidWrite.fire(chunk.toString()));
+                channel.on('data', chunk => onDidWrite.fire(decodeTerminalOutput(chunk)));
+                channel.stderr!.on('data', chunk => onDidWrite.fire(decodeTerminalOutput(chunk)));
                 // TODO: ^ Keep track of stdout's color, switch to red, output, then switch back?
             } catch (e) {
                 Logging.error`Error starting SSH terminal:\n${e}`;
@@ -264,7 +283,7 @@ export async function createTerminal(options: TerminalOptions): Promise<SSHPseud
         },
         handleInput(data) {
             if (pseudo.status === 'wait-to-close') return pseudo.close();
-            pseudo.channel?.write(data);
+            pseudo.channel?.write(encodeTerminalInput(data));
         },
     };
     return pseudo;
diff --git a/webview/src/ConfigEditor/fields.tsx b/webview/src/ConfigEditor/fields.tsx
index 2cabbc8..5c2840b 100644
--- a/webview/src/ConfigEditor/fields.tsx
+++ b/webview/src/ConfigEditor/fields.tsx
@@ -169,9 +169,16 @@ export function taskCommand(config: FileSystemConfig, onChange: FSCChanged<'task
   return <FieldDropdownWithInput key="taskCommand" label="Task command" {...{ value, values, description }} onChange={callback} optional />
 }
 
+export function encoding(config: FileSystemConfig, onChange: FSCChanged<'encoding'>): React.ReactElement {
+  const callback = (newValue?: string) => onChange('encoding', newValue);
+  const description = (<>Text encoding used for terminal input/output. For a list of supported encodings, see <a href="https://github.com/ashtuchkin/iconv-lite/wiki/Supported-Encodings" target="_blank" rel="noreferrer">iconv-lite wiki</a></>);
+  const values = ['utf8', 'iso-8859-1', 'Shift_JIS', 'EUC-JP', 'EUC-KR'];
+  return <FieldDropdownWithInput key="encoding" label="Encoding" {...{ value: config.encoding, values, description }} onChange={callback} optional />
+}
+
 export type FieldFactory = (config: FileSystemConfig, onChange: FSCChanged, onChangeMultiple: FSCChangedMultiple) => React.ReactElement | null;
 export const FIELDS: FieldFactory[] = [
   name, label, group, merge, extend, putty, host, port,
   root, agent, username, password, privateKeyPath, passphrase,
-  newFileMode, agentForward, sftpCommand, sftpSudo, terminalCommand, taskCommand,
+  newFileMode, agentForward, sftpCommand, sftpSudo, terminalCommand, taskCommand, encoding,
   PROXY_FIELD];
diff --git a/webview/src/FieldTypes/base.tsx b/webview/src/FieldTypes/base.tsx
index 8c3d315..89bd7f5 100644
--- a/webview/src/FieldTypes/base.tsx
+++ b/webview/src/FieldTypes/base.tsx
@@ -4,7 +4,7 @@ import './index.css';
 
 export interface Props<T> {
     label?: string;
-    description?: string;
+    description?: React.ReactNode;
     value: T;
     optional?: boolean;
     group?: FieldGroup;