diff --git a/modules/integration/src/test/scala/scala/cli/integration/RunJdkTestDefinitions.scala b/modules/integration/src/test/scala/scala/cli/integration/RunJdkTestDefinitions.scala
index bb93fbea58..060b18e3b4 100644
--- a/modules/integration/src/test/scala/scala/cli/integration/RunJdkTestDefinitions.scala
+++ b/modules/integration/src/test/scala/scala/cli/integration/RunJdkTestDefinitions.scala
@@ -11,27 +11,19 @@ trait RunJdkTestDefinitions { _: RunTestDefinitions =>
       s"zulu:$javaVersion"
     else javaVersion.toString
 
-  def canUseScalaInstallationWrapper: Boolean =
-    actualScalaVersion.startsWith("3") && actualScalaVersion.split('.').drop(1).head.toInt >= 5
-
   for {
     javaVersion <- Constants.allJavaVersions
     index = javaIndex(javaVersion)
     useScalaInstallationWrapper <-
       if (canUseScalaInstallationWrapper) Seq(false, true) else Seq(false)
     launcherString = if (useScalaInstallationWrapper) "coursier scala installation" else "Scala CLI"
-    scalaRunnerWrapperVersion = actualScalaVersion match {
-      case v if v == Constants.scala3NextRc => Constants.scala3NextRcAnnounced
-      case v if v == Constants.scala3Next   => Constants.scala3NextAnnounced
-      case v                                => v
-    }
     withLauncher = (root: os.Path) =>
       (f: Seq[os.Shellable] => Unit) =>
         if (useScalaInstallationWrapper)
           withScalaRunnerWrapper(
             root = root,
             localBin = root / "local-bin",
-            scalaVersion = scalaRunnerWrapperVersion,
+            scalaVersion = actualScalaRunnerWrapperVersion,
             shouldCleanUp = false
           )(launcher => f(Seq(launcher)))
         else
diff --git a/modules/integration/src/test/scala/scala/cli/integration/RunTestDefinitions.scala b/modules/integration/src/test/scala/scala/cli/integration/RunTestDefinitions.scala
index 100391e613..4fa6bcfdd9 100644
--- a/modules/integration/src/test/scala/scala/cli/integration/RunTestDefinitions.scala
+++ b/modules/integration/src/test/scala/scala/cli/integration/RunTestDefinitions.scala
@@ -32,6 +32,15 @@ abstract class RunTestDefinitions
   protected val ciOpt: Seq[String] =
     Option(System.getenv("CI")).map(v => Seq("-e", s"CI=$v")).getOrElse(Nil)
 
+  def canUseScalaInstallationWrapper: Boolean =
+    actualScalaVersion.startsWith("3") && actualScalaVersion.split('.').drop(1).head.toInt >= 5
+
+  lazy val actualScalaRunnerWrapperVersion: String = actualScalaVersion match {
+    case v if v == Constants.scala3NextRc => Constants.scala3NextRcAnnounced
+    case v if v == Constants.scala3Next   => Constants.scala3NextAnnounced
+    case v                                => v
+  }
+
   test("print command") {
     val fileName = "simple.sc"
     val message  = "Hello"
@@ -1071,6 +1080,40 @@ abstract class RunTestDefinitions
     }
   }
 
+  for {
+    useScalaInstallationWrapper <-
+      if (canUseScalaInstallationWrapper) Seq(false, true) else Seq(false)
+    launcherString = if (useScalaInstallationWrapper) "coursier scala installation" else "Scala CLI"
+    withLauncher = (root: os.Path) =>
+      (f: Seq[os.Shellable] => Unit) =>
+        if (useScalaInstallationWrapper)
+          withScalaRunnerWrapper(
+            root = root,
+            localBin = root / "local-bin",
+            scalaVersion = actualScalaRunnerWrapperVersion,
+            shouldCleanUp = false
+          )(launcher => f(Seq(launcher)))
+        else
+          f(Seq(TestUtil.cli))
+  }
+    test(
+      s"UTF-8 characters on the input path & current working directory path with $launcherString"
+    ) {
+      val expectedMessage = "Hello"
+      val utf8DirPath     = os.rel / "äöü"
+      val inputName       = "Hello.sc"
+      val inputPath       = utf8DirPath / inputName
+      TestInputs(inputPath -> s"""println("$expectedMessage")""")
+        .fromRoot { root =>
+          withLauncher(root / utf8DirPath) { launcher =>
+            println(launcher.toString())
+            val res = os.proc(launcher, "run", inputName, extraOptions)
+              .call(cwd = root / utf8DirPath)
+            expect(res.out.trim() == expectedMessage)
+          }
+        }
+    }
+
   test("return relevant error if multiple .scala main classes are present") {
     TestUtil.retryOnCi() {
       val (scalaFile1, scalaFile2, scriptName) =
diff --git a/modules/integration/src/test/scala/scala/cli/integration/SipScalaTests.scala b/modules/integration/src/test/scala/scala/cli/integration/SipScalaTests.scala
index 55b1398acf..d3a79b9ef6 100644
--- a/modules/integration/src/test/scala/scala/cli/integration/SipScalaTests.scala
+++ b/modules/integration/src/test/scala/scala/cli/integration/SipScalaTests.scala
@@ -884,4 +884,60 @@ class SipScalaTests extends ScalaCliSuite
         expect(launcherVersionOverrideHelp == standardVersionOverrideHelp)
       }
     }
+
+  test("coursier scala installation works with utf8 paths") {
+    val utf8DirPath = os.rel / "äöü"
+    TestInputs(utf8DirPath / "version.sc" ->
+      "println(dotty.tools.dotc.config.Properties.versionNumberString)")
+      .fromRoot { root =>
+        val rootWithUtf8 = root / utf8DirPath
+        val localCache   = rootWithUtf8 / "local-cache"
+        val localBin     = rootWithUtf8 / "local-bin"
+        val scalaVersion = Constants.scala3NextRcAnnounced
+        withScalaRunnerWrapper(
+          root = rootWithUtf8,
+          localCache = Some(localCache),
+          localBin = localBin,
+          scalaVersion = scalaVersion
+        ) { launchScalaPath =>
+          val r = os.proc(launchScalaPath, "--with-compiler", "version.sc")
+            .call(
+              cwd = rootWithUtf8,
+              env = Map("COURSIER_CACHE" -> localCache.toString),
+              check = false // need to clean up even on failure
+            )
+          expect(r.exitCode == 0)
+          expect(r.out.trim() == scalaVersion)
+        }
+      }
+  }
+
+  test("raw coursier works with utf8 paths") {
+    val utf8DirPath = os.rel / "äöü"
+    TestInputs(utf8DirPath / "version.sc" ->
+      "println(dotty.tools.dotc.config.Properties.versionNumberString)")
+      .fromRoot { root =>
+        val rootWithUtf8 = root / utf8DirPath
+        val localCache   = rootWithUtf8 / "local-cache"
+        val localBin     = rootWithUtf8 / "local-bin"
+        val scalaVersion = Constants.scala3NextRcAnnounced
+        // ensure cs works at all
+        os.proc(TestUtil.cs, "version")
+          .call(cwd = rootWithUtf8, stdout = os.Inherit)
+        // ensure scala is installable
+        os.proc(
+          TestUtil.cs,
+          "install",
+          "--cache",
+          localCache,
+          "--install-dir",
+          localBin,
+          s"scala:$scalaVersion"
+        ).call(cwd = rootWithUtf8)
+        // ensure scala got installed
+        val launcherPath = if (Properties.isWin) localBin / "scala.bat" else localBin / "scala"
+        os.proc(launcherPath, "--version")
+          .call(cwd = rootWithUtf8, stdout = os.Inherit)
+      }
+  }
 }