diff --git a/History.md b/History.md
index 49dbc55950..b3f24f4057 100644
--- a/History.md
+++ b/History.md
@@ -1,3 +1,10 @@
+## [Git master](https://github.com/cucumber/cucumber/compare/v1.2.3...master)
+
+### New Features
+
+### Bugfixes
+* Fix problem with non-ascii characters in file path ([#150](https://github.com/cucumber/cucumber/issues/150) Oleg Sukhodolsky)
+
 ## [1.2.3](https://github.com/cucumber/cucumber/compare/v1.2.2...v1.2.3)
 
 ### Bugfixes
diff --git a/lib/cucumber/core_ext/proc.rb b/lib/cucumber/core_ext/proc.rb
index a72927c87f..8e47bd387b 100644
--- a/lib/cucumber/core_ext/proc.rb
+++ b/lib/cucumber/core_ext/proc.rb
@@ -1,4 +1,5 @@
 # Proc extension to get more location info out of a proc
+require 'cucumber/platform'
 class Proc #:nodoc:
   PROC_PATTERN = /[\d\w]+@(.+):(\d+).*>/
   PWD = Dir.pwd
@@ -16,6 +17,7 @@ def file_colon_line
       path, line = *to_s.match(PROC_PATTERN)[1..2]
       path = File.expand_path(path)
       pwd = File.expand_path(PWD)
+      pwd.force_encoding(path.encoding) unless Cucumber::RUBY_1_8_7
       if path.index(pwd)
         path = path[pwd.length+1..-1]
       elsif path =~ /.*\/gems\/(.*\.rb)$/
diff --git a/spec/cucumber/core_ext/proc_spec.rb b/spec/cucumber/core_ext/proc_spec.rb
index 5f912a0a42..f39aa1f451 100644
--- a/spec/cucumber/core_ext/proc_spec.rb
+++ b/spec/cucumber/core_ext/proc_spec.rb
@@ -1,10 +1,22 @@
+# encoding: utf-8
 require 'spec_helper'
 require 'cucumber/core_ext/proc'
 
 describe Proc do
   it "should remove extraneous path info for file" do
     proc = lambda {|a,b|}
-    proc.file_colon_line.should =~ /^spec\/cucumber\/core_ext\/proc_spec\.rb:6/
+    proc.file_colon_line.should =~ /^spec\/cucumber\/core_ext\/proc_spec\.rb:7/
+  end
+
+  unless Cucumber::RUBY_1_8_7
+    it "should work with non-English path" do
+      proc = lambda {|a,b|}
+      def proc.to_s
+        "#<Proc:0x00000003c04740@#{Dir.pwd}/å/spec/cucumber/core_ext/proc_spec.rb:12 (lambda)>".force_encoding('ASCII-8BIT')
+      end
+
+      proc.file_colon_line.force_encoding('UTF-8').should =~ /^å\/spec\/cucumber\/core_ext\/proc_spec\.rb:12/
+    end
   end
 
   it "should raise ArityMismatchError for too many args (expecting 0)" do