diff --git a/mysql-test/t/ctype_many.test b/mysql-test/t/ctype_many.test
index 1f9f9cf99cc..ddb7034be10 100644
--- a/mysql-test/t/ctype_many.test
+++ b/mysql-test/t/ctype_many.test
@@ -2,6 +2,8 @@
 DROP TABLE IF EXISTS t1;
 --enable_warnings
 
+SET NAMES latin1;
+
 CREATE TABLE t1 (
   comment CHAR(32) ASCII NOT NULL,
   koi8_ru_f CHAR(32) CHARACTER SET koi8r NOT NULL
@@ -135,10 +137,12 @@ INSERT INTO t1 (koi8_ru_f,comment) VALUES (_koi8r'
 INSERT INTO t1 (koi8_ru_f,comment) VALUES (_koi8r'à','CYR CAPIT YU');
 INSERT INTO t1 (koi8_ru_f,comment) VALUES (_koi8r'ñ','CYR CAPIT YA');
 
-SELECT CONVERT(koi8_ru_f USING utf8),MIN(comment),COUNT(*) FROM t1 GROUP BY 1;
+SET NAMES utf8;
+SELECT koi8_ru_f,MIN(comment),COUNT(*) FROM t1 GROUP BY 1;
 
 ALTER TABLE t1 ADD utf8_f CHAR(32) CHARACTER SET utf8 NOT NULL;
 UPDATE t1 SET utf8_f=CONVERT(koi8_ru_f USING utf8);
+SET NAMES koi8r;
 SELECT * FROM t1;
 
 ALTER TABLE t1 ADD bin_f CHAR(32) BYTE NOT NULL;
@@ -161,6 +165,7 @@ FROM t1 t11,t1 t12
 WHERE t11.koi8_ru_f=CONVERT(t12.utf8_f USING koi8r)
 ORDER BY t12.utf8_f,t11.comment,t12.comment;
 
+SET NAMES utf8;
 ALTER TABLE t1 ADD ucs2_f CHAR(32) CHARACTER SET ucs2;
 ALTER TABLE t1 CHANGE ucs2_f ucs2_f CHAR(32) UNICODE NOT NULL;
 
@@ -193,5 +198,8 @@ UPDATE t1 SET greek_f=CONVERT(ucs2_f USING greek) WHERE comment LIKE 'GRE%';
 UPDATE t1 SET armscii8_f=CONVERT(ucs2_f USING armscii8) WHERE comment LIKE 'ARM%';
 UPDATE t1 SET utf8_f=CONVERT(ucs2_f USING utf8) WHERE utf8_f='';
 UPDATE t1 SET ucs2_f=CONVERT(utf8_f USING ucs2) WHERE ucs2_f='';
+SELECT * FROM t1;
+SET NAMES 'binary';
+SELECT * FROM t1;
 SELECT min(comment),count(*) FROM t1 GROUP BY ucs2_f;
 DROP TABLE t1;
diff --git a/mysys/charset.c b/mysys/charset.c
index 87fb7846553..0b2fd514019 100644
--- a/mysys/charset.c
+++ b/mysys/charset.c
@@ -324,7 +324,7 @@ static int add_collation(CHARSET_INFO *cs)
     if (cs->primary_number == cs->number)
       cs->state |= MY_CS_PRIMARY;
       
-    if (cs->primary_number == cs->number)
+    if (cs->binary_number == cs->number)
       cs->state |= MY_CS_BINSORT;
     
     if (!(all_charsets[cs->number]->state & MY_CS_COMPILED))
diff --git a/sql/item.cc b/sql/item.cc
index 28fcabfe1b8..6dbe026515d 100644
--- a/sql/item.cc
+++ b/sql/item.cc
@@ -90,19 +90,23 @@ bool Item::check_cols(uint c)
   return 0;
 }
 
-void Item::set_name(const char *str,uint length)
+void Item::set_name(const char *str,uint length, CHARSET_INFO *cs)
 {
   if (!length)
-    name= (char*) str;				// Used by AS
-  else
-  {
-    while (length && !my_isgraph(system_charset_info,*str))
-    {						// Fix problem with yacc
-      length--;
-      str++;
-    }
-    name=sql_strmake(str,min(length,MAX_FIELD_WIDTH));
+    length= str ? strlen(str) : 0;
+  while (length && !my_isgraph(cs,*str))
+  {						// Fix problem with yacc
+    length--;
+    str++;
   }
+  if (!my_charset_same(cs, system_charset_info))
+  {
+    String tmp;
+    tmp.copy(str, length, cs, system_charset_info);
+    name=sql_strmake(tmp.ptr(),min(tmp.length(),MAX_FIELD_WIDTH));
+  }
+  else
+    name=sql_strmake(str,min(length,MAX_FIELD_WIDTH));
 }
 
 /*
diff --git a/sql/item.h b/sql/item.h
index 7b31f03f6ac..2bb22d47083 100644
--- a/sql/item.h
+++ b/sql/item.h
@@ -63,7 +63,7 @@ public:
   */
   Item(THD *thd, Item &item);
   virtual ~Item() { name=0; }		/*lint -e1509 */
-  void set_name(const char *str,uint length=0);
+  void set_name(const char *str,uint length, CHARSET_INFO *cs);
   void init_make_field(Send_field *tmp_field,enum enum_field_types type);
   virtual void make_field(Send_field *field);
   virtual bool fix_fields(THD *, struct st_table_list *, Item **);
@@ -359,7 +359,7 @@ public:
     str_value.set(str,length,cs);
     coercibility= coer;
     max_length=length;
-    name=(char*) str_value.ptr();
+    set_name(str, length, cs);
     decimals=NOT_FIXED_DEC;
   }
   Item_string(const char *name_par, const char *str, uint length,
@@ -368,7 +368,7 @@ public:
     str_value.set(str,length,cs);
     coercibility= coer;
     max_length=length;
-    name=(char*) name_par;
+    set_name(name_par,0,cs);
     decimals=NOT_FIXED_DEC;
   }
   ~Item_string() {}
diff --git a/sql/item_cmpfunc.cc b/sql/item_cmpfunc.cc
index 301e5b4454f..998b38513a9 100644
--- a/sql/item_cmpfunc.cc
+++ b/sql/item_cmpfunc.cc
@@ -124,10 +124,10 @@ void Item_bool_func2::fix_length_and_dec()
       }
     }
   }
-  set_cmp_func();
   /* QQ: COERCIBILITY */
-  cmp_charset= (args[0]->binary() || args[1]->binary()) ? 
-	      &my_charset_bin : args[0]->charset();
+  cmp_charset= (args[0]->binary() || args[1]->binary()) ?
+                &my_charset_bin : args[0]->charset();
+  set_cmp_func();
 }
 
 
diff --git a/sql/item_func.cc b/sql/item_func.cc
index 8fb97dc2873..2099a5a4ccf 100644
--- a/sql/item_func.cc
+++ b/sql/item_func.cc
@@ -2641,7 +2641,7 @@ Item *get_system_var(enum_var_type var_type, LEX_STRING name)
     pos=strmov(pos,"global.");
   memcpy(pos, var->name, var->name_length+1);
   // set_name() will allocate the name
-  item->set_name(buff,(uint) (pos-buff)+var->name_length);
+  item->set_name(buff,(uint) (pos-buff)+var->name_length, system_charset_info);
   return item;
 }
 
@@ -2656,9 +2656,9 @@ Item *get_system_var(enum_var_type var_type, const char *var_name, uint length,
   var= find_sys_var(var_name, length);
   DBUG_ASSERT(var != 0);
   if (!(item=var->item(thd, var_type)))
-    return 0;					// Impossible
+    return 0;						// Impossible
   thd->lex.uncacheable();
-  item->set_name(item_name);		// Will use original name
+  item->set_name(item_name, 0, system_charset_info);	// Will use original name
   return item;
 }
 
diff --git a/sql/item_strfunc.cc b/sql/item_strfunc.cc
index 80d85e565e7..f68a0dc9e73 100644
--- a/sql/item_strfunc.cc
+++ b/sql/item_strfunc.cc
@@ -2015,65 +2015,14 @@ String *Item_func_conv::val_str(String *str)
 
 String *Item_func_conv_charset::val_str(String *str)
 {
-  my_wc_t wc;
-  int cnvres;
-  const uchar *s, *se;
-  uchar *d, *d0, *de;
-  uint32 dmaxlen;
   String *arg= args[0]->val_str(str);
-  CHARSET_INFO *from,*to;
-
   if (!arg)
   {
     null_value=1;
     return 0;
   }
-  null_value=0;
-
-  from=arg->charset();
-  to=conv_charset;
-
-  s=(const uchar*)arg->ptr();
-  se=s+arg->length();
-
-  dmaxlen=arg->length()*to->mbmaxlen+1;
-  str->alloc(dmaxlen);
-  d0=d=(unsigned char*)str->ptr();
-  de=d+dmaxlen;
-
-  while (1)
-  {
-    cnvres=from->mb_wc(from,&wc,s,se);
-    if (cnvres>0)
-    {
-      s+=cnvres;
-    }
-    else if (cnvres==MY_CS_ILSEQ)
-    {
-      s++;
-      wc='?';
-    }
-    else
-      break;
-
-outp:
-    cnvres=to->wc_mb(to,wc,d,de);
-    if (cnvres>0)
-    {
-      d+=cnvres;
-    }
-    else if (cnvres==MY_CS_ILUNI && wc!='?')
-    {
-        wc='?';
-        goto outp;
-    }
-    else
-      break;
-  };
-
-  str->length((uint32) (d-d0));
-  str->set_charset(to);
-  return str;
+  null_value= str->copy(arg->ptr(),arg->length(),arg->charset(),conv_charset);
+  return null_value ? 0 : str;
 }
 
 void Item_func_conv_charset::fix_length_and_dec()
diff --git a/sql/mysqld.cc b/sql/mysqld.cc
index e01af4de543..7f9c39e7e8f 100644
--- a/sql/mysqld.cc
+++ b/sql/mysqld.cc
@@ -2084,7 +2084,6 @@ static int init_common_variables(const char *conf_file_name, int argc,
 #endif
   if (!(default_charset_info= get_charset_by_name(sys_charset.value, MYF(MY_WME))))
     return 1;
-  system_charset_info= default_charset_info;
   charsets_list= list_charsets(MYF(MY_CS_COMPILED | MY_CS_CONFIG));
 
   if (use_temp_pool && bitmap_init(&temp_pool,1024,1))
diff --git a/sql/protocol.cc b/sql/protocol.cc
index c7ce38eadac..9fb32daf57f 100644
--- a/sql/protocol.cc
+++ b/sql/protocol.cc
@@ -714,7 +714,6 @@ bool Protocol_simple::store(const char *from, uint length, CHARSET_INFO *cs)
 #endif
   if (convert)
     return convert_str(from, length);
-#if 0
   if (cs != this->thd->charset())
   {
     String tmp;
@@ -722,7 +721,6 @@ bool Protocol_simple::store(const char *from, uint length, CHARSET_INFO *cs)
     return net_store_data(tmp.ptr(), tmp.length());
   }
   else
-#endif
     return net_store_data(from, length);
 }
 
@@ -813,11 +811,18 @@ bool Protocol_simple::store(Field *field)
   field_pos++;
 #endif
   char buff[MAX_FIELD_WIDTH];
-  String tmp(buff,sizeof(buff), &my_charset_bin);
-  field->val_str(&tmp,&tmp);
+  String tmp1(buff,sizeof(buff), &my_charset_bin);
+  field->val_str(&tmp1,&tmp1);
   if (convert)
-    return convert_str(tmp.ptr(), tmp.length());
-  return net_store_data(tmp.ptr(), tmp.length());
+    return convert_str(tmp1.ptr(), tmp1.length());
+  if (field->charset() != this->thd->charset())
+  {
+    String tmp;
+    tmp.copy(tmp1.ptr(), tmp1.length(), tmp1.charset(), this->thd->charset());
+    return net_store_data(tmp.ptr(), tmp.length());
+  }
+  else
+    return net_store_data(tmp1.ptr(), tmp1.length());
 }
 
 
diff --git a/sql/sql_string.cc b/sql/sql_string.cc
index d796c53fb52..ae3875834f0 100644
--- a/sql/sql_string.cc
+++ b/sql/sql_string.cc
@@ -28,7 +28,7 @@
 #include <floatingpoint.h>
 #endif
 
-CHARSET_INFO *system_charset_info= &my_charset_latin1;
+CHARSET_INFO *system_charset_info= &my_charset_utf8;
 extern gptr sql_alloc(unsigned size);
 extern void sql_element_free(void *ptr);
 static uint32
diff --git a/sql/sql_yacc.yy b/sql/sql_yacc.yy
index 7db398e7810..a526b8d4e06 100644
--- a/sql/sql_yacc.yy
+++ b/sql/sql_yacc.yy
@@ -558,7 +558,7 @@ bool my_yyoverflow(short **a, YYSTYPE **b,int *yystacksize);
 %type <lex_str>
 	IDENT TEXT_STRING REAL_NUM FLOAT_NUM NUM LONG_NUM HEX_NUM LEX_HOSTNAME
 	ULONGLONG_NUM field_ident select_alias ident ident_or_text
-        UNDERSCORE_CHARSET
+        UNDERSCORE_CHARSET IDENT_sys TEXT_STRING_sys TEXT_STRING_db
 
 %type <lex_str_ptr>
 	opt_table_alias
@@ -772,22 +772,22 @@ master_defs:
        | master_defs ',' master_def;
 
 master_def:
-       MASTER_HOST_SYM EQ TEXT_STRING
+       MASTER_HOST_SYM EQ TEXT_STRING_sys
        {
 	 Lex->mi.host = $3.str;
        }
        |
-       MASTER_USER_SYM EQ TEXT_STRING
+       MASTER_USER_SYM EQ TEXT_STRING_sys
        {
 	 Lex->mi.user = $3.str;
        }
        |
-       MASTER_PASSWORD_SYM EQ TEXT_STRING
+       MASTER_PASSWORD_SYM EQ TEXT_STRING_sys
        {
 	 Lex->mi.password = $3.str;
        }
        |
-       MASTER_LOG_FILE_SYM EQ TEXT_STRING
+       MASTER_LOG_FILE_SYM EQ TEXT_STRING_sys
        {
 	 Lex->mi.log_file_name = $3.str;
        }
@@ -807,7 +807,7 @@ master_def:
 	 Lex->mi.connect_retry = $3;
        }
        |
-       RELAY_LOG_FILE_SYM EQ TEXT_STRING
+       RELAY_LOG_FILE_SYM EQ TEXT_STRING_sys
        {
 	 Lex->mi.relay_log_name = $3.str;
        }
@@ -877,14 +877,14 @@ create:
 	    lex->name=$4.str;
             lex->create_info.options=$3;
 	  }
-	| CREATE udf_func_type UDF_SYM IDENT
+	| CREATE udf_func_type UDF_SYM IDENT_sys
 	  {
 	    LEX *lex=Lex;
 	    lex->sql_command = SQLCOM_CREATE_FUNCTION;
 	    lex->udf.name = $4;
 	    lex->udf.type= $2;
 	  }
-	  UDF_RETURNS_SYM udf_type UDF_SONAME_SYM TEXT_STRING
+	  UDF_RETURNS_SYM udf_type UDF_SONAME_SYM TEXT_STRING_sys
 	  {
 	    LEX *lex=Lex;
 	    lex->udf.returns=(Item_result) $7;
@@ -966,8 +966,8 @@ create_table_option:
 	| MAX_ROWS opt_equal ulonglong_num	{ Lex->create_info.max_rows= $3; Lex->create_info.used_fields|= HA_CREATE_USED_MAX_ROWS;}
 	| MIN_ROWS opt_equal ulonglong_num	{ Lex->create_info.min_rows= $3; Lex->create_info.used_fields|= HA_CREATE_USED_MIN_ROWS;}
 	| AVG_ROW_LENGTH opt_equal ULONG_NUM	{ Lex->create_info.avg_row_length=$3; Lex->create_info.used_fields|= HA_CREATE_USED_AVG_ROW_LENGTH;}
-	| PASSWORD opt_equal TEXT_STRING	{ Lex->create_info.password=$3.str; }
-	| COMMENT_SYM opt_equal TEXT_STRING	{ Lex->create_info.comment=$3.str; }
+	| PASSWORD opt_equal TEXT_STRING_sys	{ Lex->create_info.password=$3.str; }
+	| COMMENT_SYM opt_equal TEXT_STRING_sys	{ Lex->create_info.comment=$3.str; }
 	| AUTO_INC opt_equal ulonglong_num	{ Lex->create_info.auto_increment_value=$3; Lex->create_info.used_fields|= HA_CREATE_USED_AUTO;}
 	| PACK_KEYS_SYM opt_equal ULONG_NUM	{ Lex->create_info.table_options|= $3 ? HA_OPTION_PACK_KEYS : HA_OPTION_NO_PACK_KEYS; Lex->create_info.used_fields|= HA_CREATE_USED_PACK_KEYS;}
 	| PACK_KEYS_SYM opt_equal DEFAULT	{ Lex->create_info.table_options&= ~(HA_OPTION_PACK_KEYS | HA_OPTION_NO_PACK_KEYS); Lex->create_info.used_fields|= HA_CREATE_USED_PACK_KEYS;}
@@ -1001,8 +1001,9 @@ create_table_option:
 	    Lex->create_info.used_fields|= HA_CREATE_USED_CHARSET;
 	  }
 	| INSERT_METHOD opt_equal merge_insert_types   { Lex->create_info.merge_insert_method= $3; Lex->create_info.used_fields|= HA_CREATE_USED_INSERT_METHOD;}
-	| DATA_SYM DIRECTORY_SYM opt_equal TEXT_STRING { Lex->create_info.data_file_name= $4.str; }
-	| INDEX DIRECTORY_SYM opt_equal TEXT_STRING    { Lex->create_info.index_file_name= $4.str; };
+	| DATA_SYM DIRECTORY_SYM opt_equal TEXT_STRING_sys
+	  { Lex->create_info.data_file_name= $4.str; }
+	| INDEX DIRECTORY_SYM opt_equal TEXT_STRING_sys { Lex->create_info.index_file_name= $4.str; };
 
 table_types:
 	ISAM_SYM	{ $$= DB_TYPE_ISAM; }
@@ -1637,7 +1638,7 @@ restore:
 	{
 	   Lex->sql_command = SQLCOM_RESTORE_TABLE;
 	}
-	table_list FROM TEXT_STRING
+	table_list FROM TEXT_STRING_sys
         {
 	  Lex->backup_dir = $6.str;
         };
@@ -1647,7 +1648,7 @@ backup:
 	{
 	   Lex->sql_command = SQLCOM_BACKUP_TABLE;
 	}
-	table_list TO_SYM TEXT_STRING
+	table_list TO_SYM TEXT_STRING_sys
         {
 	  Lex->backup_dir = $6.str;
         };
@@ -1897,9 +1898,9 @@ select_item:
 	    if (add_item_to_list(YYTHD, $2))
 	      YYABORT;
 	    if ($4.str)
-	      $2->set_name($4.str);
+	      $2->set_name($4.str,$4.length,system_charset_info);
 	    else if (!$2->name)
-	      $2->set_name($1,(uint) ($3 - $1));
+	      $2->set_name($1,(uint) ($3 - $1), YYTHD->charset());
 	  };
 
 remember_name:
@@ -1913,11 +1914,12 @@ select_item2:
 	| expr		{ $$=$1; };
 
 select_alias:
-	{ $$.str=0;}
-	| AS ident { $$=$2; }
-	| AS TEXT_STRING  { $$=$2; }
-	| ident { $$=$1; }
-	| TEXT_STRING  { $$=$1; };
+	/* empty */		{ $$.str=0;}
+	| AS ident		{ $$=$2; }
+	| AS TEXT_STRING_sys	{ $$=$2; }
+	| ident			{ $$=$1; }
+	| TEXT_STRING_sys	{ $$=$1; }
+	;
 
 optional_braces:
 	/* empty */ {}
@@ -2219,9 +2221,9 @@ simple_expr:
 	    Lex->uncacheable();;
 	  }
 	| ENCRYPT '(' expr ',' expr ')'   { $$= new Item_func_encrypt($3,$5); }
-	| DECODE_SYM '(' expr ',' TEXT_STRING ')'
+	| DECODE_SYM '(' expr ',' TEXT_STRING_db ')'
 	  { $$= new Item_func_decode($3,$5.str); }
-	| ENCODE_SYM '(' expr ',' TEXT_STRING ')'
+	| ENCODE_SYM '(' expr ',' TEXT_STRING_db ')'
 	 { $$= new Item_func_encode($3,$5.str); }
 	| DES_DECRYPT_SYM '(' expr ')'
         { $$= new Item_func_des_decrypt($3); }
@@ -2818,8 +2820,8 @@ having_clause:
 	;
 
 opt_escape:
-	ESCAPE_SYM TEXT_STRING	{ $$= $2.str; }
-	| /* empty */		{ $$= (char*) "\\"; };
+	ESCAPE_SYM TEXT_STRING_db	{ $$= $2.str; }
+	| /* empty */			{ $$= (char*) "\\"; };
 
 
 /*
@@ -3015,7 +3017,7 @@ procedure_item:
 	    if (add_proc_to_list(lex->thd, $2))
 	      YYABORT;
 	    if (!$2->name)
-	      $2->set_name($1,(uint) ((char*) lex->tok_end - $1));
+	      $2->set_name($1,(uint) ((char*) lex->tok_end - $1), YYTHD->charset());
 	  }
           ;
 
@@ -3044,7 +3046,7 @@ select_var_ident:  '@' ident_or_text
            ;
 
 into:
-        INTO OUTFILE TEXT_STRING
+        INTO OUTFILE TEXT_STRING_sys
 	{
 	  LEX *lex=Lex;
 	  if (!lex->describe)
@@ -3056,7 +3058,7 @@ into:
 	  }
 	}
 	opt_field_term opt_line_term
-	| INTO DUMPFILE TEXT_STRING
+	| INTO DUMPFILE TEXT_STRING_sys
 	{
 	  LEX *lex=Lex;
 	  if (!lex->describe)
@@ -3118,7 +3120,7 @@ drop:
 	    lex->drop_if_exists=$3;
 	    lex->name=$4.str;
 	 }
-	| DROP UDF_SYM IDENT
+	| DROP UDF_SYM IDENT_sys
 	  {
 	    LEX *lex=Lex;
 	    lex->sql_command = SQLCOM_DROP_FUNCTION;
@@ -3478,7 +3480,7 @@ show_param:
 	      YYABORT;
 	  }
         | NEW_SYM MASTER_SYM FOR_SYM SLAVE WITH MASTER_LOG_FILE_SYM EQ
-	  TEXT_STRING AND MASTER_LOG_POS_SYM EQ ulonglong_num
+	  TEXT_STRING_sys AND MASTER_LOG_POS_SYM EQ ulonglong_num
 	  AND MASTER_SERVER_ID_SYM EQ
 	ULONG_NUM
           {
@@ -3593,7 +3595,7 @@ from_or_in:
 
 binlog_in:
 	/* empty */ { Lex->mi.log_file_name = 0; }
-        | IN_SYM TEXT_STRING { Lex->mi.log_file_name = $2.str; };
+        | IN_SYM TEXT_STRING_sys { Lex->mi.log_file_name = $2.str; };
 
 binlog_from:
 	/* empty */ { Lex->mi.pos = 4; /* skip magic number */ }
@@ -3696,7 +3698,7 @@ purge_options:
 	;
 
 purge_option:
-        TO_SYM TEXT_STRING
+        TO_SYM TEXT_STRING_sys
         {
 	   Lex->sql_command = SQLCOM_PURGE;
 	   Lex->to_log = $2.str;
@@ -3740,7 +3742,7 @@ use:	USE_SYM ident
 
 /* import, export of files */
 
-load:	LOAD DATA_SYM load_data_lock opt_local INFILE TEXT_STRING
+load:	LOAD DATA_SYM load_data_lock opt_local INFILE TEXT_STRING_sys
 	{
 	  LEX *lex=Lex;
 	  lex->sql_command= SQLCOM_LOAD;
@@ -3824,17 +3826,21 @@ opt_ignore_lines:
 /* Common definitions */
 
 text_literal:
-	TEXT_STRING
-	{ $$ = new Item_string($1.str,$1.length,
-			       YYTHD->variables.thd_charset); }
+	TEXT_STRING_db
+	{
+	  THD *thd= YYTHD;
+	  CHARSET_INFO *cs= my_charset_same(thd->charset(),thd->db_charset) ?
+			    thd->charset() : thd->db_charset;
+	  $$ = new Item_string($1.str,$1.length,cs);
+	}
 	| UNDERSCORE_CHARSET TEXT_STRING
 	  { $$ = new Item_string($2.str,$2.length,Lex->charset,Item::COER_IMPLICIT); }
-	| text_literal TEXT_STRING
+	| text_literal TEXT_STRING_db
 	  { ((Item_string*) $1)->append($2.str,$2.length); };
 
 text_string:
-	TEXT_STRING
-	{ $$=  new String($1.str,$1.length,YYTHD->variables.thd_charset); }
+	TEXT_STRING_db
+	{ $$=  new String($1.str,$1.length,YYTHD->db_charset); }
 	| HEX_NUM
 	  {
 	    Item *tmp = new Item_varbinary($1.str,$1.length);
@@ -3957,8 +3963,63 @@ table_ident:
 	| '.' ident		{ $$=new Table_ident($2);}
    /* For Delphi */;
 
+IDENT_sys:
+	IDENT
+	{
+	  THD *thd= YYTHD;
+	  if (my_charset_same(thd->charset(),system_charset_info))
+	  {
+	    $$=$1;
+	  }
+	  else
+	  {
+	    String ident;
+	    ident.copy($1.str,$1.length,thd->charset(),system_charset_info);
+	    $$.str= thd->strmake(ident.ptr(),ident.length());
+	    $$.length= ident.length();
+	  }
+	}
+	;
+
+TEXT_STRING_sys:
+	TEXT_STRING
+	{
+	  THD *thd= YYTHD;
+	  if (my_charset_same(thd->charset(),system_charset_info))
+	  {
+	    $$=$1;
+	  }
+	  else
+	  {
+	    String ident;
+	    ident.copy($1.str,$1.length,thd->charset(),system_charset_info);
+	    $$.str= thd->strmake(ident.ptr(),ident.length());
+	    $$.length= ident.length();
+	  }
+	}
+	;
+
+TEXT_STRING_db:
+	TEXT_STRING
+	{
+	  THD *thd= YYTHD;
+	  if (my_charset_same(thd->charset(),thd->db_charset))
+	  {
+	    $$=$1;
+	  }
+	  else
+	  {
+	    String ident;
+	    ident.copy($1.str,$1.length,thd->charset(),thd->db_charset);
+	    $$.str= thd->strmake(ident.ptr(),ident.length());
+	    $$.length= ident.length();
+	  }
+	}
+	;
+
+
 ident:
-	IDENT	    { $$=$1; }
+	IDENT_sys	    { $$=$1; }
 	| keyword
 	{
 	  LEX *lex= Lex;
@@ -3970,9 +4031,9 @@ ident:
 	;
 
 ident_or_text:
-	ident 		{ $$=$1;}
-	| TEXT_STRING	{ $$=$1;}
-	| LEX_HOSTNAME	{ $$=$1;};
+	ident 			{ $$=$1;}
+	| TEXT_STRING_sys	{ $$=$1;}
+	| LEX_HOSTNAME		{ $$=$1;};
 
 user:
 	ident_or_text
diff --git a/strings/ctype-utf8.c b/strings/ctype-utf8.c
index 2db00e64c72..897e2846659 100644
--- a/strings/ctype-utf8.c
+++ b/strings/ctype-utf8.c
@@ -27,6 +27,10 @@
 #define EILSEQ ENOENT
 #endif
 
+#ifndef HAVE_CHARSET_utf8
+#define HAVE_CHARSET_utf8
+#endif
+
 #ifdef HAVE_CHARSET_utf8
 #define HAVE_UNIDATA
 #endif