diff --git a/jedi/api/__init__.py b/jedi/api/__init__.py
index 994a3bc8..485e2c85 100644
--- a/jedi/api/__init__.py
+++ b/jedi/api/__init__.py
@@ -112,9 +112,10 @@ class Script(object):
         self._module_node, source = self._evaluator.parse_and_get_code(
             code=source,
             path=self.path,
+            encoding=encoding,
             cache=False,  # No disk cache, because the current script often changes.
             diff_cache=settings.fast_parser,
-            cache_path=settings.cache_directory
+            cache_path=settings.cache_directory,
         )
         debug.speed('parsed')
         self._code_lines = parso.split_lines(source, keepends=True)
diff --git a/jedi/evaluate/__init__.py b/jedi/evaluate/__init__.py
index 3ba52b89..01081a3a 100644
--- a/jedi/evaluate/__init__.py
+++ b/jedi/evaluate/__init__.py
@@ -373,12 +373,12 @@ class Evaluator(object):
             scope_node = parent_scope(node)
         return from_scope_node(scope_node, is_nested=True, node_is_object=node_is_object)
 
-    def parse_and_get_code(self, code=None, path=None, **kwargs):
+    def parse_and_get_code(self, code=None, path=None, encoding='utf-8', **kwargs):
         if self.allow_different_encoding:
             if code is None:
                 with open(path, 'rb') as f:
                     code = f.read()
-            code = python_bytes_to_unicode(code, errors='replace')
+            code = python_bytes_to_unicode(code, encoding=encoding, errors='replace')
 
         return self.grammar.parse(code=code, path=path, **kwargs), code
 
diff --git a/test/test_api/test_unicode.py b/test/test_api/test_unicode.py
index c74cb686..7fd28bb2 100644
--- a/test/test_api/test_unicode.py
+++ b/test/test_api/test_unicode.py
@@ -72,3 +72,9 @@ def test_wrong_encoding(Script, tmpdir):
 
     c, = Script('import x; x.foo', sys_path=[tmpdir.strpath]).completions()
     assert c.name == 'foobar'
+
+
+def test_encoding_parameter(Script):
+    name = u('hö')
+    s = Script(name.encode('latin-1'), encoding='latin-1')
+    assert s._module_node.get_code() == name