diff --git a/docs/changelog.rst b/docs/changelog.rst
index a4d5ee44..8cfb9cdf 100644
--- a/docs/changelog.rst
+++ b/docs/changelog.rst
@@ -93,6 +93,14 @@ v0.20.0 (UNRELEASED)
 - Add basic tests for the stream library provider.
 
 
+v0.19.6 (UNRELEASED)
+====================
+
+**Audio**
+
+- Support UTF-8 in M3U playlists. (Fixes: :issue:`853`)
+
+
 v0.19.5 (2014-12-23)
 ====================
 
diff --git a/mopidy/audio/playlists.py b/mopidy/audio/playlists.py
index 5688db4b..5a362191 100644
--- a/mopidy/audio/playlists.py
+++ b/mopidy/audio/playlists.py
@@ -58,11 +58,11 @@ def parse_m3u(data):
     # TODO: convert non URIs to file URIs.
     found_header = False
     for line in data.readlines():
-        if found_header or line.startswith('#EXTM3U'):
+        if found_header or line.startswith(b'#EXTM3U'):
             found_header = True
         else:
             continue
-        if not line.startswith('#') and line.strip():
+        if not line.startswith(b'#') and line.strip():
             yield line.strip()
 
 
diff --git a/tests/audio/test_playlists.py b/tests/audio/test_playlists.py
index eb79cfeb..f01568f8 100644
--- a/tests/audio/test_playlists.py
+++ b/tests/audio/test_playlists.py
@@ -13,7 +13,7 @@ BAD = b'foobarbaz'
 M3U = b"""#EXTM3U
 #EXTINF:123, Sample artist - Sample title
 file:///tmp/foo
-#EXTINF:321,Example Artist - Example title
+#EXTINF:321,Example Artist - Example \xc5\xa7\xc5\x95
 file:///tmp/bar
 #EXTINF:213,Some Artist - Other title
 file:///tmp/baz
@@ -25,7 +25,7 @@ File1=file:///tmp/foo
 Title1=Sample Title
 Length1=123
 File2=file:///tmp/bar
-Title2=Example title
+Title2=Example \xc5\xa7\xc5\x95
 Length2=321
 File3=file:///tmp/baz
 Title3=Other title
@@ -40,7 +40,7 @@ ASX = b"""<ASX version="3.0">
     <REF href="file:///tmp/foo" />
   </ENTRY>
   <ENTRY>
-    <TITLE>Example title</TITLE>
+    <TITLE>Example \xc5\xa7\xc5\x95</TITLE>
     <REF href="file:///tmp/bar" />
   </ENTRY>
   <ENTRY>
@@ -65,7 +65,7 @@ XSPF = b"""<?xml version="1.0" encoding="UTF-8"?>
       <location>file:///tmp/foo</location>
     </track>
     <track>
-      <title>Example title</title>
+      <title>Example \xc5\xa7\xc5\x95</title>
       <location>file:///tmp/bar</location>
     </track>
     <track>