diff --git a/rhn-client-tools.spec b/rhn-client-tools.spec
index 6beeb98d97..e9eab86d7f 100644
--- a/rhn-client-tools.spec
+++ b/rhn-client-tools.spec
@@ -5,7 +5,7 @@ Source0: https://fedorahosted.org/releases/s/p/spacewalk/%{name}-%{version}.tar.
 URL:     https://fedorahosted.org/spacewalk
 Name: rhn-client-tools
 Version: 2.0.2
-Release: 5%{?dist}
+Release: 6%{?dist}
 BuildRoot: %{_tmppath}/%{name}-%{version}-%{release}-root-%(%{__id_u} -n)
 BuildArch: noarch
 %if 0%{?suse_version}
@@ -361,6 +361,9 @@ make -f Makefile.rhn-client-tools test
 %endif
 
 %changelog
+* Wed Sep 17 2014 Stephen Herr <sherr@redhat.com> 2.0.2-6
+- allow unicode characters in proxy username / password (mzazrivec@redhat.com)
+
 * Mon Feb 03 2014 Milan Zazrivec <mzazrivec@redhat.com> 2.0.2-5
 - Resolves: #1060240 - new information icon in gnome3
 
diff --git a/src/up2date_client/config.py b/src/up2date_client/config.py
index 4c5c46468e..2e2e3bbaaa 100644
--- a/src/up2date_client/config.py
+++ b/src/up2date_client/config.py
@@ -13,6 +13,7 @@ up2date agent to hold config info.
 
 import os
 import sys
+import locale
 from urlparse import urlsplit, urlunsplit
 from rhn.connections import idn_ascii_to_pune, idn_pune_to_unicode
 
@@ -114,7 +115,7 @@ class ConfigFile:
                 # possibly split value into a list
                 values = value.split(";")
                 if key in ['proxyUser', 'proxyPassword']:
-                    value = str(value)
+                    value = str(value.encode(locale.getpreferredencoding()))
                 elif len(values) == 1:
                     try:
                         value = int(value)