diff --git a/ChangeLog b/ChangeLog
index 63701ae582..3e80e35040 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,8 @@
+Sat Sep  4 23:48:47 2010  Nobuyoshi Nakada  <nobu@ruby-lang.org>
+
+	* file.c (rb_file_s_readlink): symlink target should be in
+	  filesystem encoding.
+
 Sat Sep  4 10:40:50 2010  Nobuyoshi Nakada  <nobu@ruby-lang.org>
 
 	* load.c (ruby_init_ext): export for golfers.
diff --git a/file.c b/file.c
index 9f04b5f838..03f40942d8 100644
--- a/file.c
+++ b/file.c
@@ -2451,7 +2451,7 @@ rb_file_s_readlink(VALUE klass, VALUE path)
 	xfree(buf);
 	rb_sys_fail_path(path);
     }
-    v = rb_tainted_str_new(buf, rv);
+    v = rb_filesystem_str_new(buf, rv);
     xfree(buf);
 
     return v;
diff --git a/test/ruby/test_file_exhaustive.rb b/test/ruby/test_file_exhaustive.rb
index 4615bceb05..5a62db1124 100644
--- a/test/ruby/test_file_exhaustive.rb
+++ b/test/ruby/test_file_exhaustive.rb
@@ -354,11 +354,14 @@ class TestFileExhaustive < Test::Unit::TestCase
     assert_raise(Errno::EEXIST) { File.link(@file, @file) }
   end
 
-  def test_symlink2
+  def test_readlink
     return unless @symlinkfile
     assert_equal(@file, File.readlink(@symlinkfile))
     assert_raise(Errno::EINVAL) { File.readlink(@file) }
     assert_raise(Errno::ENOENT) { File.readlink(@nofile) }
+    if fs = Encoding.find("filesystem")
+      assert_equal(fs, File.readlink(@symlinkfile).encoding)
+    end
   rescue NotImplementedError
   end