diff --git a/heat/api/middleware/fault.py b/heat/api/middleware/fault.py
index eda705c42c..466ef92e4a 100644
--- a/heat/api/middleware/fault.py
+++ b/heat/api/middleware/fault.py
@@ -94,10 +94,10 @@ class FaultWrapper(wsgi.Middleware):
         if ex_type.endswith(rpc_common._REMOTE_POSTFIX):
             ex_type = ex_type[:-len(rpc_common._REMOTE_POSTFIX)]
 
-        message = str(ex.message)
+        message = unicode(ex.message)
 
         if cfg.CONF.debug and not trace:
-            trace = str(ex)
+            trace = unicode(ex)
             if trace.find('\n') > -1:
                 unused, trace = trace.split('\n', 1)
             else:
diff --git a/heat/common/exception.py b/heat/common/exception.py
index 22bc4f8ead..170ba70823 100644
--- a/heat/common/exception.py
+++ b/heat/common/exception.py
@@ -120,6 +120,9 @@ class HeatException(Exception):
     def __str__(self):
         return str(self.message)
 
+    def __unicode__(self):
+        return unicode(self.message)
+
 
 class MissingCredentialError(HeatException):
     message = _("Missing required credential: %(required)s")
diff --git a/heat/tests/test_fault_middleware.py b/heat/tests/test_fault_middleware.py
index 9fe55191ec..b2c079c427 100644
--- a/heat/tests/test_fault_middleware.py
+++ b/heat/tests/test_fault_middleware.py
@@ -47,6 +47,26 @@ class FaultMiddlewareTest(HeatTestCase):
                     'title': 'Internal Server Error'}
         self.assertEqual(msg, expected)
 
+    def test_exception_with_non_ascii_chars(self):
+        # We set debug to true to test the code path for serializing traces too
+        cfg.CONF.set_override('debug', True)
+        msg = u'Error with non-ascii chars \x80'
+
+        class TestException(heat_exc.HeatException):
+            message = msg
+
+        wrapper = fault.FaultWrapper(None)
+        msg = wrapper._error(TestException())
+        expected = {'code': 500,
+                    'error': {'message': u'Error with non-ascii chars \x80',
+                              'traceback': 'None\n',
+                              'type': 'TestException'},
+                    'explanation': ('The server has either erred or is '
+                                    'incapable of performing the requested '
+                                    'operation.'),
+                    'title': 'Internal Server Error'}
+        self.assertEqual(msg, expected)
+
     def test_remote_exception(self):
         # We want tracebacks
         cfg.CONF.set_override('debug', True)