diff --git a/changelogs/fragments/ansible-managed-encoding.yaml b/changelogs/fragments/ansible-managed-encoding.yaml
new file mode 100644
index 00000000000..9d956dcdc0a
--- /dev/null
+++ b/changelogs/fragments/ansible-managed-encoding.yaml
@@ -0,0 +1,5 @@
+---
+bugfixes:
+- template - Fix for encoding issues when a template path contains non-ascii
+  characters and using the template path in ansible_managed
+  (https://github.com/ansible/ansible/issues/27262)
diff --git a/lib/ansible/template/__init__.py b/lib/ansible/template/__init__.py
index 59e429fdc18..401d5e7bb47 100644
--- a/lib/ansible/template/__init__.py
+++ b/lib/ansible/template/__init__.py
@@ -72,7 +72,6 @@ JINJA2_OVERRIDE = '#jinja2:'
 
 
 def generate_ansible_template_vars(path):
-
     b_path = to_bytes(path)
     try:
         template_uid = pwd.getpwuid(os.stat(b_path).st_uid).pw_name
@@ -80,10 +79,10 @@ def generate_ansible_template_vars(path):
         template_uid = os.stat(b_path).st_uid
 
     temp_vars = {}
-    temp_vars['template_host'] = os.uname()[1]
-    temp_vars['template_path'] = b_path
+    temp_vars['template_host'] = to_text(os.uname()[1])
+    temp_vars['template_path'] = path
     temp_vars['template_mtime'] = datetime.datetime.fromtimestamp(os.path.getmtime(b_path))
-    temp_vars['template_uid'] = template_uid
+    temp_vars['template_uid'] = to_text(template_uid)
     temp_vars['template_fullpath'] = os.path.abspath(path)
     temp_vars['template_run_date'] = datetime.datetime.now()
 
@@ -93,7 +92,7 @@ def generate_ansible_template_vars(path):
         uid=temp_vars['template_uid'],
         file=temp_vars['template_path'],
     )
-    temp_vars['ansible_managed'] = time.strftime(managed_str, time.localtime(os.path.getmtime(b_path)))
+    temp_vars['ansible_managed'] = to_text(time.strftime(to_native(managed_str), time.localtime(os.path.getmtime(b_path))))
 
     return temp_vars
 
diff --git a/test/integration/targets/template/ansible_managed.cfg b/test/integration/targets/template/ansible_managed.cfg
new file mode 100644
index 00000000000..3626429fdb2
--- /dev/null
+++ b/test/integration/targets/template/ansible_managed.cfg
@@ -0,0 +1,2 @@
+[defaults]
+ansible_managed=ansible_managed = Ansible managed: {file} modified on %Y-%m-%d %H:%M:%S by {uid} on {host}
diff --git a/test/integration/targets/template/ansible_managed.yml b/test/integration/targets/template/ansible_managed.yml
new file mode 100644
index 00000000000..d827e55cab0
--- /dev/null
+++ b/test/integration/targets/template/ansible_managed.yml
@@ -0,0 +1,12 @@
+---
+- hosts: testhost
+  gather_facts: False
+  tasks:
+  - file:
+      path: '{{ output_dir }}/café.txt'
+      state: 'absent'
+  # Smoketest that ansible_managed with non-ascii chars works:
+  # https://github.com/ansible/ansible/issues/27262
+  - template:
+      src: 'templates/café.j2'
+      dest: '{{ output_dir }}/café.txt'
diff --git a/test/integration/targets/template/runme.sh b/test/integration/targets/template/runme.sh
index 74a3344d93a..4df69c425a0 100755
--- a/test/integration/targets/template/runme.sh
+++ b/test/integration/targets/template/runme.sh
@@ -6,3 +6,6 @@ ANSIBLE_ROLES_PATH=../ ansible-playbook template.yml -i ../../inventory -e @../.
 
 # Test for #35571
 ansible testhost -i testhost, -m debug -a 'msg={{ hostvars["localhost"] }}' -e "vars1={{ undef }}" -e "vars2={{ vars1 }}"
+
+# Test for https://github.com/ansible/ansible/issues/27262
+ansible-playbook ansible_managed.yml -c  ansible_managed.cfg -i ../../inventory -e @../../integration_config.yml -v "$@"