diff --git a/plugins/managesieve/Changelog b/plugins/managesieve/Changelog
index 358836f01..45abafa38 100644
--- a/plugins/managesieve/Changelog
+++ b/plugins/managesieve/Changelog
@@ -1,3 +1,8 @@
+* version 1.5 [2009-09-04]
+-----------------------------------------------------------
+- Added es_ES, ua_UA localizations
+- Added 'managesieve_mbox_encoding' option
+
 * version 1.4 [2009-07-29]
 -----------------------------------------------------------
 - Updated PEAR::Net_Sieve to 1.1.7
diff --git a/plugins/managesieve/config.inc.php.dist b/plugins/managesieve/config.inc.php.dist
index d8e949a1f..1f0bdef65 100644
--- a/plugins/managesieve/config.inc.php.dist
+++ b/plugins/managesieve/config.inc.php.dist
@@ -14,6 +14,11 @@ $rcmail_config['managesieve_usetls'] = false;
 // default contents of filters script (eg. default spam filter)
 $rcmail_config['managesieve_default'] = '/etc/dovecot/sieve/global';
 
+// Sieve RFC says that we should use UTF-8 endcoding for mailbox names,
+// but some implementations does not covert UTF-8 to modified UTF-7.
+// Defaults to UTF7-IMAP for backward compatybility
+$rcmail_config['managesieve_mbox_encoding'] = 'UTF7-IMAP';
+
 // I need this because my dovecot (with listescape plugin) uses
 // ':' delimiter, but creates folders with dot delimiter
 $rcmail_config['managesieve_replace_delimiter'] = '';
diff --git a/plugins/managesieve/managesieve.php b/plugins/managesieve/managesieve.php
index 21d974da6..b2b52d40f 100644
--- a/plugins/managesieve/managesieve.php
+++ b/plugins/managesieve/managesieve.php
@@ -7,7 +7,7 @@
  * It's clickable interface which operates on text scripts and communicates
  * with server using managesieve protocol. Adds Filters tab in Settings.
  *
- * @version 1.3
+ * @version 1.5
  * @author Aleksander 'A.L.E.C' Machniak <alec@alec.pl>
  *
  * Configuration (see config.inc.php.dist):
@@ -744,6 +744,9 @@ class managesieve extends rcube_plugin
     $a_folders = $this->rc->imap->list_mailboxes();
     $delimiter = $this->rc->imap->get_hierarchy_delimiter();
 
+    // set mbox encoding
+    $mbox_encoding = $this->rc->config->get('managesieve_mbox_encoding', 'UTF7-IMAP'); 
+
     if ($action['type'] == 'fileinto')
       $mailbox = $action['target'];
     else
@@ -758,6 +761,9 @@ class managesieve extends rcube_plugin
       if ($replace_delimiter = $this->rc->config->get('managesieve_replace_delimiter'))
         $utf7folder = str_replace($delimiter, $replace_delimiter, $utf7folder);
     
+      // convert to Sieve implementation encoding
+      $utf7folder = $this->mbox_encode($utf7folder, $mbox_encoding);
+    
       if ($folder_class = rcmail_folder_classname($name))
         $foldername = $this->gettext($folder_class);
       else
@@ -849,6 +855,10 @@ class managesieve extends rcube_plugin
     return false;
   }
  
+  private function mbox_encode($text, $encoding)
+  {
+    return rcube_charset_convert($text, 'UTF7-IMAP', $encoding);
+  }
 }
 
 ?>