diff --git a/org.eclipse.xtext.xtext.generator/src/org/eclipse/xtext/xtext/generator/XtextGenerator.xtend b/org.eclipse.xtext.xtext.generator/src/org/eclipse/xtext/xtext/generator/XtextGenerator.xtend
index 3592e369c..acb2b2fb8 100644
--- a/org.eclipse.xtext.xtext.generator/src/org/eclipse/xtext/xtext/generator/XtextGenerator.xtend
+++ b/org.eclipse.xtext.xtext.generator/src/org/eclipse/xtext/xtext/generator/XtextGenerator.xtend
@@ -27,15 +27,17 @@ import org.eclipse.xtend.lib.annotations.Accessors
 import org.eclipse.xtext.GeneratedMetamodel
 import org.eclipse.xtext.Grammar
 import org.eclipse.xtext.XtextStandaloneSetup
+import org.eclipse.xtext.parser.IEncodingProvider
+import org.eclipse.xtext.resource.IResourceServiceProvider
 import org.eclipse.xtext.util.MergeableManifest
 import org.eclipse.xtext.util.Tuples
 import org.eclipse.xtext.util.internal.Log
 import org.eclipse.xtext.xtext.generator.model.IXtextGeneratorFileSystemAccess
 import org.eclipse.xtext.xtext.generator.model.ManifestAccess
 import org.eclipse.xtext.xtext.generator.model.PluginXmlAccess
+import org.eclipse.xtext.xtext.generator.model.TextFileAccess
 import org.eclipse.xtext.xtext.generator.model.project.BundleProjectConfig
 import org.eclipse.xtext.xtext.generator.model.project.IXtextProjectConfig
-import org.eclipse.xtext.xtext.generator.model.TextFileAccess
 
 /**
  * The Xtext language infrastructure generator. Can be configured with {@link IXtextGeneratorFragment}
@@ -58,6 +60,9 @@ class XtextGenerator extends AbstractWorkflowComponent2 {
 	@Accessors
 	XtextGeneratorStandaloneSetup standaloneSetup = new XtextGeneratorStandaloneSetup
 	
+	@Accessors
+	String grammarEncoding
+	
 	Injector injector
 	
 	@Inject IXtextProjectConfig projectConfig
@@ -100,6 +105,7 @@ class XtextGenerator extends AbstractWorkflowComponent2 {
 		if (injector === null) {
 			LOG.info('Initializing Xtext generator')
 			new StandaloneSetup().addRegisterGeneratedEPackage('org.eclipse.xtext.common.types.TypesPackage')
+			initializeEncoding
 			injector = createInjector
 			injector.injectMembers(this)
 			injector.getInstance(CodeConfig) => [initialize(injector)]
@@ -113,6 +119,17 @@ class XtextGenerator extends AbstractWorkflowComponent2 {
 		}
 	}
 	
+	protected def initializeEncoding() {
+		val serviceProviderRegistry = IResourceServiceProvider.Registry.INSTANCE
+		val serviceProvider = serviceProviderRegistry.extensionToFactoryMap.get('xtext') as IResourceServiceProvider
+		val encoding = grammarEncoding ?: configuration.code.encoding
+		if (serviceProvider !== null && encoding !== null) {
+			val encodingProvider = serviceProvider.get(IEncodingProvider)
+			if (encodingProvider instanceof IEncodingProvider.Runtime)
+				encodingProvider.defaultEncoding = encoding
+		}
+	}
+	
 	protected def Injector createInjector() {
 		Guice.createInjector(configuration)
 	}
diff --git a/org.eclipse.xtext.xtext.generator/xtend-gen/org/eclipse/xtext/xtext/generator/XtextGenerator.java b/org.eclipse.xtext.xtext.generator/xtend-gen/org/eclipse/xtext/xtext/generator/XtextGenerator.java
index f045a2dd0..1a37b373f 100644
--- a/org.eclipse.xtext.xtext.generator/xtend-gen/org/eclipse/xtext/xtext/generator/XtextGenerator.java
+++ b/org.eclipse.xtext.xtext.generator/xtend-gen/org/eclipse/xtext/xtext/generator/XtextGenerator.java
@@ -20,6 +20,7 @@ import java.io.InputStream;
 import java.util.HashMap;
 import java.util.List;
 import java.util.ListIterator;
+import java.util.Map;
 import java.util.Set;
 import java.util.function.Consumer;
 import org.apache.log4j.Logger;
@@ -37,6 +38,8 @@ import org.eclipse.xtext.AbstractMetamodelDeclaration;
 import org.eclipse.xtext.GeneratedMetamodel;
 import org.eclipse.xtext.Grammar;
 import org.eclipse.xtext.XtextStandaloneSetup;
+import org.eclipse.xtext.parser.IEncodingProvider;
+import org.eclipse.xtext.resource.IResourceServiceProvider;
 import org.eclipse.xtext.util.MergeableManifest;
 import org.eclipse.xtext.util.Triple;
 import org.eclipse.xtext.util.Tuples;
@@ -95,6 +98,9 @@ public class XtextGenerator extends AbstractWorkflowComponent2 {
   @Accessors
   private XtextGeneratorStandaloneSetup standaloneSetup = new XtextGeneratorStandaloneSetup();
   
+  @Accessors
+  private String grammarEncoding;
+  
   private Injector injector;
   
   @Inject
@@ -159,6 +165,7 @@ public class XtextGenerator extends AbstractWorkflowComponent2 {
       XtextGenerator.LOG.info("Initializing Xtext generator");
       StandaloneSetup _standaloneSetup = new StandaloneSetup();
       _standaloneSetup.addRegisterGeneratedEPackage("org.eclipse.xtext.common.types.TypesPackage");
+      this.initializeEncoding();
       Injector _createInjector = this.createInjector();
       this.injector = _createInjector;
       this.injector.injectMembers(this);
@@ -179,6 +186,28 @@ public class XtextGenerator extends AbstractWorkflowComponent2 {
     }
   }
   
+  protected void initializeEncoding() {
+    final IResourceServiceProvider.Registry serviceProviderRegistry = IResourceServiceProvider.Registry.INSTANCE;
+    Map<String, Object> _extensionToFactoryMap = serviceProviderRegistry.getExtensionToFactoryMap();
+    Object _get = _extensionToFactoryMap.get("xtext");
+    final IResourceServiceProvider serviceProvider = ((IResourceServiceProvider) _get);
+    String _elvis = null;
+    if (this.grammarEncoding != null) {
+      _elvis = this.grammarEncoding;
+    } else {
+      CodeConfig _code = this.configuration.getCode();
+      String _encoding = _code.getEncoding();
+      _elvis = _encoding;
+    }
+    final String encoding = _elvis;
+    if (((serviceProvider != null) && (encoding != null))) {
+      final IEncodingProvider encodingProvider = serviceProvider.<IEncodingProvider>get(IEncodingProvider.class);
+      if ((encodingProvider instanceof IEncodingProvider.Runtime)) {
+        ((IEncodingProvider.Runtime)encodingProvider).setDefaultEncoding(encoding);
+      }
+    }
+  }
+  
   protected Injector createInjector() {
     return Guice.createInjector(this.configuration);
   }
@@ -546,4 +575,13 @@ public class XtextGenerator extends AbstractWorkflowComponent2 {
   public void setStandaloneSetup(final XtextGeneratorStandaloneSetup standaloneSetup) {
     this.standaloneSetup = standaloneSetup;
   }
+  
+  @Pure
+  public String getGrammarEncoding() {
+    return this.grammarEncoding;
+  }
+  
+  public void setGrammarEncoding(final String grammarEncoding) {
+    this.grammarEncoding = grammarEncoding;
+  }
 }