--- a/src/jdk/nashorn/api/scripting/NashornScriptEngine.java	Tue Jun 18 13:25:24 2013 +0530
+++ b/src/jdk/nashorn/api/scripting/NashornScriptEngine.java	Tue Jun 18 13:52:37 2013 +0530
@@ -34,6 +34,7 @@
 import java.io.Reader;
 import java.lang.reflect.Method;
 import java.net.URL;
+import java.nio.charset.Charset;
 import java.security.AccessController;
 import java.security.PrivilegedAction;
 import java.security.PrivilegedActionException;
@@ -121,7 +122,8 @@
         try {
             if (reader instanceof URLReader) {
                 final URL url = ((URLReader)reader).getURL();
-                return evalImpl(compileImpl(new Source(url.toString(), url), ctxt), ctxt);
+                final Charset cs = ((URLReader)reader).getCharset();
+                return evalImpl(compileImpl(new Source(url.toString(), url, cs), ctxt), ctxt);
             }
             return evalImpl(Source.readFully(reader), ctxt);
         } catch (final IOException e) {

--- a/src/jdk/nashorn/api/scripting/URLReader.java	Tue Jun 18 13:25:24 2013 +0530
+++ b/src/jdk/nashorn/api/scripting/URLReader.java	Tue Jun 18 13:52:37 2013 +0530
@@ -25,10 +25,12 @@
 
 package jdk.nashorn.api.scripting;
 
+import java.io.CharArrayReader;
 import java.io.IOException;
-import java.io.InputStreamReader;
 import java.io.Reader;
 import java.net.URL;
+import java.nio.charset.Charset;
+import jdk.nashorn.internal.runtime.Source;
 
 /**
  * A Reader that reads from a URL. Used to make sure that the reader
@@ -36,7 +38,10 @@
  */
 public final class URLReader extends Reader {
     // underlying URL
-    private URL url;
+    private final URL url;
+    // Charset used to convert
+    private final Charset cs;
+
     // lazily initialized underlying reader for URL
     private Reader reader;
 
@@ -44,9 +49,35 @@
      * Constructor
      *
      * @param url URL for this URLReader
+     * @throws NullPointerException if url is null
      */
     public URLReader(final URL url) {
+        this(url, (Charset)null);
+    }
+
+    /**
+     * Constructor
+     *
+     * @param url URL for this URLReader
+     * @param charsetName  Name of the Charset used to convert bytes to chars
+     * @throws NullPointerException if url is null
+     */
+    public URLReader(final URL url, final String charsetName) {
+        this(url, Charset.forName(charsetName));
+    }
+
+    /**
+     * Constructor
+     *
+     * @param url URL for this URLReader
+     * @param cs  Charset used to convert bytes to chars
+     * @throws NullPointerException if url is null
+     */
+    public URLReader(final URL url, final Charset cs) {
+        // null check
+        url.getClass();
         this.url = url;
+        this.cs  = cs;
     }
 
     @Override
@@ -67,11 +98,20 @@
         return url;
     }
 
+    /**
+     * Charset used by this reader
+     *
+     * @return the Chartset used to convert bytes to chars
+     */
+    public Charset getCharset() {
+        return cs;
+    }
+
     // lazily initialize char array reader using URL content
     private Reader getReader() throws IOException {
         synchronized (lock) {
             if (reader == null) {
-                reader = new InputStreamReader(url.openStream());
+                reader = new CharArrayReader(Source.readFully(url, cs));
             }
         }
 

--- a/src/jdk/nashorn/internal/runtime/Source.java	Tue Jun 18 13:25:24 2013 +0530
+++ b/src/jdk/nashorn/internal/runtime/Source.java	Tue Jun 18 13:52:37 2013 +0530
@@ -116,7 +116,20 @@
      * @throws IOException if source cannot be loaded
      */
     public Source(final String name, final URL url) throws IOException {
-        this(name, baseURL(url, null), readFully(url.openStream()), url);
+        this(name, baseURL(url, null), readFully(url), url);
+    }
+
+    /**
+     * Constructor
+     *
+     * @param name  source name
+     * @param url   url from which source can be loaded
+     * @param cs    Charset used to convert bytes to chars
+     *
+     * @throws IOException if source cannot be loaded
+     */
+    public Source(final String name, final URL url, final Charset cs) throws IOException {
+        this(name, baseURL(url, null), readFully(url, cs), url);
     }
 
     /**
@@ -131,6 +144,19 @@
         this(name, dirName(file, null), readFully(file), getURLFromFile(file));
     }
 
+    /**
+     * Constructor
+     *
+     * @param name  source name
+     * @param file  file from which source can be loaded
+     * @param cs    Charset used to convert bytes to chars
+     *
+     * @throws IOException if source cannot be loaded
+     */
+    public Source(final String name, final File file, final Charset cs) throws IOException {
+        this(name, dirName(file, null), readFully(file, cs), getURLFromFile(file));
+    }
+
     @Override
     public boolean equals(final Object obj) {
         if (this == obj) {
@@ -344,6 +370,53 @@
     }
 
     /**
+     * Read all of the source until end of file. Return it as char array
+     *
+     * @param file  source file
+     * @param cs Charset used to convert bytes to chars
+     * @return source as content
+     *
+     * @throws IOException if source could not be read
+     */
+    public static char[] readFully(final File file, final Charset cs) throws IOException {
+        if (!file.isFile()) {
+            throw new IOException(file + " is not a file"); //TODO localize?
+        }
+
+        final byte[] buf = Files.readAllBytes(file.toPath());
+        if (cs != null) {
+            return new String(buf, cs).toCharArray();
+        } else {
+            return byteToCharArray(buf);
+        }
+    }
+
+    /**
+     * Read all of the source until end of stream from the given URL. Return it as char array
+     *
+     * @param url URL to read content from
+     * @return source as content
+     *
+     * @throws IOException if source could not be read
+     */
+    public static char[] readFully(final URL url) throws IOException {
+        return readFully(url.openStream());
+    }
+
+    /**
+     * Read all of the source until end of file. Return it as char array
+     *
+     * @param url URL to read content from
+     * @param cs Charset used to convert bytes to chars
+     * @return source as content
+     *
+     * @throws IOException if source could not be read
+     */
+    public static char[] readFully(final URL url, final Charset cs) throws IOException {
+        return readFully(url.openStream(), cs);
+    }
+
+    /**
      * Get the base url. This is currently used for testing only
      * @param url a URL
      * @return base URL for url
@@ -391,6 +464,14 @@
         return (idx != -1)? name.substring(0, idx + 1) : defaultValue;
     }
 
+    private static char[] readFully(final InputStream is, final Charset cs) throws IOException {
+        if (cs != null) {
+            return new String(readBytes(is), cs).toCharArray();
+        } else {
+            return readFully(is);
+        }
+    }
+
     private static char[] readFully(final InputStream is) throws IOException {
         return byteToCharArray(readBytes(is));
     }