diff --git a/mysql-test/r/grant.result b/mysql-test/r/grant.result
index 8b3948e093f..c47530cdc46 100644
--- a/mysql-test/r/grant.result
+++ b/mysql-test/r/grant.result
@@ -204,3 +204,27 @@ show grants for mysqltest_1@localhost;
 Grants for mysqltest_1@localhost
 GRANT USAGE ON *.* TO 'mysqltest_1'@'localhost' IDENTIFIED BY PASSWORD '*2470C0C06DEE42FD1618BB99005ADCA2EC9D1E19'
 drop user mysqltest_1@localhost;
+SET NAMES koi8r;
+CREATE DATABASE бд;
+USE бд;
+CREATE TABLE таб (кол int);
+GRANT SELECT ON бд.* TO юзер@localhost;
+SHOW GRANTS FOR юзер@localhost;
+Grants for юзер@localhost
+GRANT USAGE ON *.* TO 'юзер'@'localhost'
+GRANT SELECT ON `бд`.* TO 'юзер'@'localhost'
+REVOKE SELECT ON бд.* FROM юзер@localhost;
+GRANT SELECT ON бд.таб TO юзер@localhost;
+SHOW GRANTS FOR юзер@localhost;
+Grants for юзер@localhost
+GRANT USAGE ON *.* TO 'юзер'@'localhost'
+GRANT SELECT ON `бд`.`таб` TO 'юзер'@'localhost'
+REVOKE SELECT ON бд.таб FROM юзер@localhost;
+GRANT SELECT (кол) ON бд.таб TO юзер@localhost;
+SHOW GRANTS FOR юзер@localhost;
+Grants for юзер@localhost
+GRANT USAGE ON *.* TO 'юзер'@'localhost'
+GRANT SELECT (кол) ON `бд`.`таб` TO 'юзер'@'localhost'
+REVOKE SELECT (кол) ON бд.таб FROM юзер@localhost;
+DROP DATABASE бд;
+SET NAMES latin1;
diff --git a/mysql-test/t/grant.test b/mysql-test/t/grant.test
index 832541b0f86..6bd2fa0c703 100644
--- a/mysql-test/t/grant.test
+++ b/mysql-test/t/grant.test
@@ -148,3 +148,26 @@ grant usage on *.* to mysqltest_1@localhost identified by "password";
 grant select, update, insert on test.* to mysqltest@localhost;
 show grants for mysqltest_1@localhost;
 drop user mysqltest_1@localhost;
+
+#
+# Bug #3403 Wrong encodin in SHOW GRANTS output
+#
+SET NAMES koi8r;
+CREATE DATABASE бд;
+USE бд;
+CREATE TABLE таб (кол int);
+
+GRANT SELECT ON бд.* TO юзер@localhost;
+SHOW GRANTS FOR юзер@localhost;
+REVOKE SELECT ON бд.* FROM юзер@localhost;
+
+GRANT SELECT ON бд.таб TO юзер@localhost;
+SHOW GRANTS FOR юзер@localhost;
+REVOKE SELECT ON бд.таб FROM юзер@localhost;
+
+GRANT SELECT (кол) ON бд.таб TO юзер@localhost;
+SHOW GRANTS FOR юзер@localhost;
+REVOKE SELECT (кол) ON бд.таб FROM юзер@localhost;
+
+DROP DATABASE бд;
+SET NAMES latin1;
diff --git a/sql/sql_acl.cc b/sql/sql_acl.cc
index 9c7fe3e2993..880b6eb74ee 100644
--- a/sql/sql_acl.cc
+++ b/sql/sql_acl.cc
@@ -3064,7 +3064,7 @@ int mysql_show_grants(THD *thd,LEX_USER *lex_user)
 
   /* Add first global access grants */
   {
-    String global(buff,sizeof(buff),&my_charset_latin1);
+    String global(buff,sizeof(buff),system_charset_info);
     global.length(0);
     global.append("GRANT ",6);
 
@@ -3089,7 +3089,8 @@ int mysql_show_grants(THD *thd,LEX_USER *lex_user)
       }
     }
     global.append (" ON *.* TO '",12);
-    global.append(lex_user->user.str,lex_user->user.length);
+    global.append(lex_user->user.str, lex_user->user.length,
+		  system_charset_info);
     global.append ("'@'",3);
     global.append(lex_user->host.str,lex_user->host.length);
     global.append ('\'');
@@ -3177,7 +3178,7 @@ int mysql_show_grants(THD *thd,LEX_USER *lex_user)
       want_access=acl_db->access;
       if (want_access)
       {
-	String db(buff,sizeof(buff),&my_charset_latin1);
+	String db(buff,sizeof(buff),system_charset_info);
 	db.length(0);
 	db.append("GRANT ",6);
 
@@ -3203,7 +3204,8 @@ int mysql_show_grants(THD *thd,LEX_USER *lex_user)
 	db.append (" ON ",4);
 	append_identifier(thd, &db, acl_db->db, strlen(acl_db->db));
 	db.append (".* TO '",7);
-	db.append(lex_user->user.str,lex_user->user.length);
+	db.append(lex_user->user.str, lex_user->user.length,
+		  system_charset_info);
 	db.append ("'@'",3);
 	db.append(lex_user->host.str, lex_user->host.length);
 	db.append ('\'');
@@ -3237,7 +3239,7 @@ int mysql_show_grants(THD *thd,LEX_USER *lex_user)
       ulong table_access= grant_table->privs;
       if ((table_access | grant_table->cols) != 0)
       {
-	String global(buff,sizeof(buff),&my_charset_latin1);
+	String global(buff, sizeof(buff), system_charset_info);
 	ulong test_access= (table_access | grant_table->cols) & ~GRANT_ACL;
 
 	global.length(0);
@@ -3291,7 +3293,8 @@ int mysql_show_grants(THD *thd,LEX_USER *lex_user)
 		    else
 		      global.append(", ",2);
 		    global.append(grant_column->column,
-				  grant_column->key_length);
+				  grant_column->key_length,
+				  system_charset_info);
 		  }
 		}
 		if (found_col)
@@ -3307,7 +3310,8 @@ int mysql_show_grants(THD *thd,LEX_USER *lex_user)
 	append_identifier(thd, &global, grant_table->tname,
 			  strlen(grant_table->tname));
 	global.append(" TO '",5);
-	global.append(lex_user->user.str,lex_user->user.length);
+	global.append(lex_user->user.str, lex_user->user.length,
+		      system_charset_info);
 	global.append("'@'",3);
 	global.append(lex_user->host.str,lex_user->host.length);
 	global.append('\'');