diff --git a/java/compiler/impl/src/com/intellij/compiler/server/BuildManager.java b/java/compiler/impl/src/com/intellij/compiler/server/BuildManager.java
index 573299528348..9c4693d31f7b 100644
--- a/java/compiler/impl/src/com/intellij/compiler/server/BuildManager.java
+++ b/java/compiler/impl/src/com/intellij/compiler/server/BuildManager.java
@@ -56,6 +56,7 @@ import com.intellij.openapi.util.SystemInfo;
 import com.intellij.openapi.util.io.FileUtil;
 import com.intellij.openapi.util.registry.Registry;
 import com.intellij.openapi.util.text.StringUtil;
+import com.intellij.openapi.vfs.CharsetToolkit;
 import com.intellij.openapi.vfs.VirtualFile;
 import com.intellij.openapi.vfs.VirtualFileManager;
 import com.intellij.openapi.vfs.newvfs.BulkFileListener;
@@ -95,6 +96,7 @@ import java.io.IOException;
 import java.io.InputStream;
 import java.net.InetAddress;
 import java.net.InetSocketAddress;
+import java.nio.charset.Charset;
 import java.util.*;
 import java.util.concurrent.Executor;
 import java.util.concurrent.RejectedExecutionException;
@@ -154,10 +156,13 @@ public class BuildManager implements ApplicationComponent{
   private final BuildMessageDispatcher myMessageDispatcher = new BuildMessageDispatcher();
   private volatile int myListenPort = -1;
   private volatile CmdlineRemoteProto.Message.ControllerMessage.GlobalSettings myGlobals;
+  @Nullable
+  private final Charset mySystemCharset;
 
   public BuildManager(final ProjectManager projectManager) {
     IS_UNIT_TEST_MODE = ApplicationManager.getApplication().isUnitTestMode();
     myProjectManager = projectManager;
+    mySystemCharset = CharsetToolkit.getDefaultSystemCharset();
     final String systemPath = PathManager.getSystemPath();
     File system = new File(systemPath);
     try {
@@ -556,13 +561,7 @@ public class BuildManager implements ApplicationComponent{
                     return;
                   }
                   myBuildsInProgress.put(projectPath, future);
-                  final Process process = launchBuildProcess(project, myListenPort, sessionId);
-                  final OSProcessHandler processHandler = new OSProcessHandler(process) {
-                    @Override
-                    protected boolean shouldDestroyProcessRecursively() {
-                      return true;
-                    }
-                  };
+                  final OSProcessHandler processHandler = launchBuildProcess(project, myListenPort, sessionId);
                   final StringBuilder stdErrOutput = new StringBuilder();
                   processHandler.addProcessListener(new ProcessAdapter() {
                     @Override
@@ -685,7 +684,7 @@ public class BuildManager implements ApplicationComponent{
     return cmdBuilder.build();
   }
 
-  private Process launchBuildProcess(Project project, final int port, final UUID sessionId) throws ExecutionException {
+  private OSProcessHandler launchBuildProcess(Project project, final int port, final UUID sessionId) throws ExecutionException {
     // choosing sdk with which the build process should be run
     Sdk projectJdk = null;
     JavaSdkVersion sdkVersion = null;
@@ -804,8 +803,11 @@ public class BuildManager implements ApplicationComponent{
     }
 
     // javac's VM should use the same default locale that IDEA uses in order for javac to print messages in 'correct' language
-    String[] propertyNames = {"user.language", "user.country", "user.region"};
-    for (String name : propertyNames) {
+    if (mySystemCharset != null) {
+      cmdLine.setCharset(mySystemCharset);
+      cmdLine.addParameter("-D" + CharsetToolkit.FILE_ENCODING_PROPERTY + "=" + mySystemCharset.name());
+    }
+    for (String name : new String[]{"user.language", "user.country", "user.region"}) {
       final String value = System.getProperty(name);
       if (value != null) {
         cmdLine.addParameter("-D" + name + "=" + value);
@@ -836,7 +838,14 @@ public class BuildManager implements ApplicationComponent{
 
     cmdLine.setWorkDirectory(workDirectory);
 
-    return cmdLine.createProcess();
+    final Process process = cmdLine.createProcess();
+
+    return new OSProcessHandler(process, null, mySystemCharset) {
+      @Override
+      protected boolean shouldDestroyProcessRecursively() {
+        return true;
+      }
+    };
   }
 
   public File getBuildSystemDirectory() {
diff --git a/jps/jps-builders/src/org/jetbrains/jps/javac/JavacServerBootstrap.java b/jps/jps-builders/src/org/jetbrains/jps/javac/JavacServerBootstrap.java
index ebde1a093772..05a33b5ae65a 100644
--- a/jps/jps-builders/src/org/jetbrains/jps/javac/JavacServerBootstrap.java
+++ b/jps/jps-builders/src/org/jetbrains/jps/javac/JavacServerBootstrap.java
@@ -56,6 +56,10 @@ public class JavacServerBootstrap {
     //appendParam(cmdLine, "-agentlib:jdwp=transport=dt_socket,server=y,suspend=n,address=5009");
 
     // javac's VM should use the same default locale that IDEA uses in order for javac to print messages in 'correct' language
+    final String encoding = System.getProperty("file.encoding");
+    if (encoding != null) {
+      appendParam(cmdLine, "-Dfile.encoding=" + encoding);
+    }
     final String lang = System.getProperty("user.language");
     if (lang != null) {
       //noinspection HardCodedStringLiteral