diff --git a/src/os_w32exe.c b/src/os_w32exe.c
index e37873b..7bdcead 100644
--- a/src/os_w32exe.c
+++ b/src/os_w32exe.c
@@ -30,6 +30,24 @@
 	__ARGS((int argc, char **argv));
 int (_cdecl *pmain)(int, char **);
 
+#ifdef FEAT_MBYTE
+/* The commandline arguments in UCS2. */
+static DWORD	nArgsW = 0;
+static LPWSTR	*ArglistW = NULL;
+static int	global_argc;
+static char	**global_argv;
+
+static int	used_file_argc = 0;	/* last argument in global_argv[] used
+					   for the argument list. */
+static int	*used_file_indexes = NULL; /* indexes in global_argv[] for
+					      command line arguments added to
+					      the argument list */
+static int	used_file_count = 0;	/* nr of entries in used_file_indexes */
+static int	used_file_literal = FALSE;  /* take file names literally */
+static int	used_file_full_path = FALSE;  /* file name was full path */
+static int	used_alist_count = 0;
+#endif
+
 #ifndef PROTO
 #ifdef FEAT_GUI
 #ifndef VIMDLL
@@ -45,7 +63,7 @@
     LPSTR	lpszCmdLine,
     int		nCmdShow)
 {
-    int		argc;
+    int		argc = 0;
     char	**argv;
     char	*tofree;
     char	prog[256];
@@ -58,15 +76,56 @@
      * startup path (so the .vimrc file can be found w/o a VIM env. var.) */
     GetModuleFileName(NULL, prog, 255);
 
-    /* Separate the command line into arguments. */
-    argc = get_cmd_args(prog, (char *)lpszCmdLine, &argv, &tofree);
-    if (argc == 0)
+    /* Separate the command line into arguments.  Use the Unicode functions
+     * when possible. When 'encoding' is later changed these are used to
+     * recode the arguments. */
+#ifdef FEAT_MBYTE
+    ArglistW = CommandLineToArgvW(GetCommandLineW(), &nArgsW);
+    if (ArglistW != NULL)
     {
-	MessageBox(0, _("Could not allocate memory for command line."),
-							   _("VIM Error"), 0);
-	return 0;
+	argv = malloc((nArgsW + 1) * sizeof(char *));
+	if (argv != NULL)
+	{
+	    int		i;
+
+	    argv[argc] = NULL;
+	    argc = nArgsW;
+	    for (i = 0; i < argc; ++i)
+	    {
+		int	len;
+
+		WideCharToMultiByte_alloc(GetACP(), 0,
+				ArglistW[i], wcslen(ArglistW[i]) + 1,
+				(LPSTR *)&argv[i], &len, 0, 0);
+		if (argv[i] == NULL)
+		{
+		    while (i > 0)
+			free(argv[--i]);
+		    free(argv);
+		    argc = 0;
+		}
+	    }
+	}
     }
 
+    if (argc == 0)
+#endif
+    {
+	argc = get_cmd_args(prog, (char *)lpszCmdLine, &argv, &tofree);
+	if (argc == 0)
+	{
+	    MessageBox(0, "Could not allocate memory for command line.",
+								  "VIM Error", 0);
+	    return 0;
+	}
+    }
+
+#ifdef FEAT_MBYTE
+    global_argc = argc;
+    global_argv = argv;
+    used_file_indexes = malloc(argc * sizeof(int));
+#endif
+
 #ifdef DYNAMIC_GETTEXT
     /* Initialize gettext library */
     dyn_libintl_init(NULL);
@@ -130,7 +189,109 @@
 #endif
     free(argv);
     free(tofree);
+#ifdef FEAT_MBYTE
+    if (ArglistW != NULL)
+	GlobalFree(ArglistW);
+#endif
 
     return 0;
 }
 #endif
+
+#ifdef FEAT_MBYTE
+/*
+ * Remember "name" is an argument that was added to the argument list.
+ * This avoids that we have to re-parse the argument list when fix_arg_enc()
+ * is called.
+ */
+    void
+used_file_arg(name, literal, full_path)
+    char	*name;
+    int		literal;
+    int		full_path;
+{
+    int		i;
+
+    if (used_file_indexes == NULL)
+	return;
+    for (i = used_file_argc + 1; i < global_argc; ++i)
+	if (STRCMP(global_argv[i], name) == 0)
+	{
+	    used_file_argc = i;
+	    used_file_indexes[used_file_count++] = i;
+	    break;
+	}
+    used_file_literal = literal;
+    used_file_full_path = full_path;
+}
+
+/*
+ * Remember the length of the argument list as it was.  If it changes then we
+ * leave it alone when 'encoding' is set.
+ */
+    void
+set_alist_count(void)
+{
+    used_alist_count = GARGCOUNT;
+}
+
+/*
+ * Fix the encoding of the command line arguments.  Invoked when 'encoding'
+ * has been changed while starting up.  Use the UCS-2 command line arguments
+ * and convert them to 'encoding'.
+ */
+    void
+fix_arg_enc()
+{
+    int		i;
+    int		idx;
+    char_u	*str;
+
+    /* Safety checks:
+     * - if argument count differs between the wide and non-wide argument
+     *   list, something must be wrong.
+     * - the file name arguments must have been located.
+     * - the length of the argument list wasn't changed by the user.
+     */
+    if (global_argc != (int)nArgsW
+	    || ArglistW == NULL
+	    || used_file_indexes == NULL
+	    || used_file_count == 0
+	    || used_alist_count != GARGCOUNT)
+	return;
+
+    /* Clear the argument list.  Make room for the new arguments. */
+    alist_clear(&global_alist);
+    if (ga_grow(&global_alist.al_ga, used_file_count) == FAIL)
+	return;	    /* out of memory */
+
+    for (i = 0; i < used_file_count; ++i)
+    {
+	idx = used_file_indexes[i];
+	str = ucs2_to_enc(ArglistW[idx], NULL);
+	if (str != NULL)
+	    alist_add(&global_alist, str, used_file_literal ? 2 : 0);
+    }
+
+    if (!used_file_literal)
+    {
+	/* Now expand wildcards in the arguments. */
+	/* Temporarily add '(' and ')' to 'isfname'.  These are valid
+	 * filename characters but are excluded from 'isfname' to make
+	 * "gf" work on a file name in parenthesis (e.g.: see vim.h). */
+	do_cmdline_cmd((char_u *)":let SaVe_ISF = &isf|set isf+=(,)");
+	alist_expand();
+	do_cmdline_cmd((char_u *)":let &isf = SaVe_ISF|unlet SaVe_ISF");
+    }
+
+    /* If wildcard expansion failed, we are editing the first file of the
+     * arglist and there is no file name: Edit the first argument now. */
+    if (curwin->w_arg_idx == 0 && curbuf->b_fname == NULL)
+    {
+	do_cmdline_cmd((char_u *)":rewind");
+	if (GARGCOUNT == 1 && used_file_full_path)
+	    (void)vim_chdirfile(alist_name(&GARGLIST[0]));
+    }
+}
+#endif
+