diff --git a/mopidy/files/library.py b/mopidy/files/library.py
index 42465fab..92762f03 100644
--- a/mopidy/files/library.py
+++ b/mopidy/files/library.py
@@ -61,6 +61,7 @@ class FilesLibraryProvider(backend.LibraryProvider):
             if not self._show_dotfiles and dir_entry.startswith(b'.'):
                 continue
 
+            dir_entry = dir_entry.decode(sys.getfilesystemencoding(), 'replace')
             if os.path.isdir(child_path):
                 result.append(models.Ref.directory(name=dir_entry, uri=uri))
             elif os.path.isfile(child_path):