diff --git a/pkl-cli/src/test/kotlin/org/pkl/cli/CliEvaluatorTest.kt b/pkl-cli/src/test/kotlin/org/pkl/cli/CliEvaluatorTest.kt
index 51bf01e77..29e51e75a 100644
--- a/pkl-cli/src/test/kotlin/org/pkl/cli/CliEvaluatorTest.kt
+++ b/pkl-cli/src/test/kotlin/org/pkl/cli/CliEvaluatorTest.kt
@@ -1457,6 +1457,49 @@ result = someLib.x
     assertThat(output).isEqualTo("result = 1\n")
   }
 
+  @Test
+  fun `eval file with non-ASCII name`() {
+    val dir = tempDir.resolve("🤬").createDirectory()
+    val file = writePklFile(dir.resolve("日本語.pkl").toString(), """
+      日本語 = "Japanese language"
+      readDir = read(".").text
+      readDirFile = read("file:$tempDir/🤬").text
+      readOne = read("日本語.pkl").text.split("\n").first
+      readOneFile = read("file:$tempDir/🤬/日本語.pkl").text.split("\n").first
+      readGlob = read*("./日*.pkl").keys
+      readGlobFile = read*("file:$tempDir/**/*.pkl").keys.map((it) -> it.replaceAll("$tempDir", ""))
+      importOne = import("日本語.pkl").readOne
+      importOneFile = import("file:$tempDir/🤬/日本語.pkl").日本語
+      importGlob = import*("./日*.pkl").keys
+      importGlobFile = import*("file:$tempDir/**/*.pkl").keys.map((it) -> it.replaceAll("$tempDir", ""))
+    """.trimIndent())
+    val output = 
+      evalToConsole(
+        CliEvaluatorOptions(
+          CliBaseOptions(sourceModules = listOf(file)),
+        )
+      )
+
+    assertThat(output).isEqualTo("""日本語 = "Japanese language"
+readDir = ""${'"'}
+  日本語.pkl
+  
+  ""${'"'}
+readDirFile = ""${'"'}
+  日本語.pkl
+  
+  ""${'"'}
+readOne = "日本語 = \"Japanese language\""
+readOneFile = "日本語 = \"Japanese language\""
+readGlob = Set("./日本語.pkl")
+readGlobFile = Set("file:/🤬/日本語.pkl")
+importOne = "日本語 = \"Japanese language\""
+importOneFile = "Japanese language"
+importGlob = Set("./日本語.pkl")
+importGlobFile = Set("file:/🤬/日本語.pkl")
+""")
+  }
+
   private fun evalModuleThatImportsPackage(certsFile: Path?, testPort: Int = -1) {
     val moduleUri =
       writePklFile(
diff --git a/pkl-core/src/main/java/org/pkl/core/StackFrameTransformers.java b/pkl-core/src/main/java/org/pkl/core/StackFrameTransformers.java
index 2122cfa19..64eb10391 100644
--- a/pkl-core/src/main/java/org/pkl/core/StackFrameTransformers.java
+++ b/pkl-core/src/main/java/org/pkl/core/StackFrameTransformers.java
@@ -93,7 +93,7 @@ public static StackFrameTransformer convertFilePathToUriScheme(String scheme) {
       var uri = frame.getModuleUri();
       if (!uri.startsWith("file:")) return frame;
 
-      return transformUri(frame, Path.of(URI.create(uri)).toString(), scheme);
+      return transformUri(frame, IoUtils.pathOfURI(URI.create(uri)).toString(), scheme);
     };
   }
 
diff --git a/pkl-core/src/main/java/org/pkl/core/module/FileResolver.java b/pkl-core/src/main/java/org/pkl/core/module/FileResolver.java
index 300724757..e3d0dd4b7 100644
--- a/pkl-core/src/main/java/org/pkl/core/module/FileResolver.java
+++ b/pkl-core/src/main/java/org/pkl/core/module/FileResolver.java
@@ -24,12 +24,13 @@
 import java.util.ArrayList;
 import java.util.Collections;
 import java.util.List;
+import org.pkl.core.util.IoUtils;
 
 public final class FileResolver {
   private FileResolver() {}
 
   public static List<PathElement> listElements(URI baseUri) throws IOException {
-    return listElements(Path.of(baseUri));
+    return listElements(IoUtils.pathOfURI(baseUri));
   }
 
   public static List<PathElement> listElements(Path path) throws IOException {
@@ -49,7 +50,7 @@ public static List<PathElement> listElements(Path path) throws IOException {
   }
 
   public static boolean hasElement(URI elementUri) {
-    return Files.exists(Path.of(elementUri));
+    return Files.exists(IoUtils.pathOfURI(elementUri));
   }
 
   public static boolean hasElement(Path path) {
diff --git a/pkl-core/src/main/java/org/pkl/core/module/ModuleKeys.java b/pkl-core/src/main/java/org/pkl/core/module/ModuleKeys.java
index 7a798a113..d17031f8c 100644
--- a/pkl-core/src/main/java/org/pkl/core/module/ModuleKeys.java
+++ b/pkl-core/src/main/java/org/pkl/core/module/ModuleKeys.java
@@ -327,18 +327,10 @@ public ResolvedModuleKey resolve(SecurityManager securityManager)
         throw new FileNotFoundException();
       }
 
-      // Path.of(URI) throws on non-ASCII characters so the module URI here must be normalized to
-      // ASCII
-      // Unfortunately there's no way to go from URI -> ASCII URI directly
-      // so this must transform URI -> ASCII String -> ASCII URI
-      try {
-        var realPath = Path.of(new URI(uri.toASCIIString())).toRealPath();
-        var resolvedUri = realPath.toUri();
-        securityManager.checkResolveModule(resolvedUri);
-        return ResolvedModuleKeys.file(this, resolvedUri, realPath);
-      } catch (URISyntaxException e) {
-        throw new PklBugException("File module URI could not be normalized to ASCII", e);
-      }
+      var realPath = IoUtils.pathOfURI(uri).toRealPath();
+      var resolvedUri = realPath.toUri();
+      securityManager.checkResolveModule(resolvedUri);
+      return ResolvedModuleKeys.file(this, resolvedUri, realPath);
     }
 
     @Override
diff --git a/pkl-core/src/main/java/org/pkl/core/util/IoUtils.java b/pkl-core/src/main/java/org/pkl/core/util/IoUtils.java
index 96ee80b76..aa2b1c82d 100644
--- a/pkl-core/src/main/java/org/pkl/core/util/IoUtils.java
+++ b/pkl-core/src/main/java/org/pkl/core/util/IoUtils.java
@@ -39,6 +39,7 @@
 import org.pkl.core.SecurityManager;
 import org.pkl.core.SecurityManagerException;
 import org.pkl.core.module.ModuleKey;
+import org.pkl.core.module.ResolvedModuleKeys;
 import org.pkl.core.packages.PackageLoadError;
 import org.pkl.core.runtime.ReaderBase;
 import org.pkl.core.runtime.VmContext;
@@ -88,6 +89,22 @@ public static URI toUri(String str) throws URISyntaxException {
     return new URI(null, null, str, null);
   }
 
+  /**
+   * Converts a URI to a Path, normalizing any non-ASCII characters.
+   */
+  public static Path pathOfURI(URI uri) {
+    // Path.of(URI) throws on non-ASCII characters so the module URI here must be normalized to
+    // ASCII
+    // Unfortunately there's no way to go from URI -> ASCII URI directly
+    // so this must transform URI -> ASCII String -> ASCII URI
+    try {
+      return Path.of(new URI(uri.toASCIIString()));
+    } catch (URISyntaxException e) {
+      // impossible to get here; we started from a valid URI to begin with
+      throw PklBugException.unreachableCode();
+    }
+  }
+
   /** Like {@link #toUri(String)}, except without checked exceptions. */
   public static URI createUri(String str) {
     try {
diff --git "a/pkl-core/src/test/files/LanguageSnippetTests/input/modules/\346\227\245\346\234\254\350\252\236_error.pkl" "b/pkl-core/src/test/files/LanguageSnippetTests/input/modules/\346\227\245\346\234\254\350\252\236_error.pkl"
new file mode 100644
index 000000000..2af8f6365
--- /dev/null
+++ "b/pkl-core/src/test/files/LanguageSnippetTests/input/modules/\346\227\245\346\234\254\350\252\236_error.pkl"
@@ -0,0 +1,2 @@
+// covers https://github.com/apple/pkl/issues/653
+日本語 = throw("Error reporting should also handle unicode filenames!")
diff --git "a/pkl-core/src/test/files/LanguageSnippetTests/output/modules/\346\227\245\346\234\254\350\252\236.pcf" "b/pkl-core/src/test/files/LanguageSnippetTests/output/modules/\346\227\245\346\234\254\350\252\236.pcf"
index d43194be7..97feec800 100644
--- "a/pkl-core/src/test/files/LanguageSnippetTests/output/modules/\346\227\245\346\234\254\350\252\236.pcf"
+++ "b/pkl-core/src/test/files/LanguageSnippetTests/output/modules/\346\227\245\346\234\254\350\252\236.pcf"
@@ -8,7 +8,7 @@ readOne = """
   importGlob = import*("./日*.pkl").keys
   
   """
-readGlob = Set("./日本語.pkl")
+readGlob = Set("./日本語.pkl", "./日本語_error.pkl")
 importOne = """
   // covers https://github.com/apple/pkl/issues/653
   日本語 = "Japanese language"
@@ -18,4 +18,4 @@ importOne = """
   importGlob = import*("./日*.pkl").keys
   
   """
-importGlob = Set("./日本語.pkl")
+importGlob = Set("./日本語.pkl", "./日本語_error.pkl")
diff --git "a/pkl-core/src/test/files/LanguageSnippetTests/output/modules/\346\227\245\346\234\254\350\252\236_error.err" "b/pkl-core/src/test/files/LanguageSnippetTests/output/modules/\346\227\245\346\234\254\350\252\236_error.err"
new file mode 100644
index 000000000..6b4e13aa6
--- /dev/null
+++ "b/pkl-core/src/test/files/LanguageSnippetTests/output/modules/\346\227\245\346\234\254\350\252\236_error.err"
@@ -0,0 +1,10 @@
+–– Pkl Error ––
+Error reporting should also handle unicode filenames!
+
+x | 日本語 = throw("Error reporting should also handle unicode filenames!")
+          ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+at 日本語_error#日本語 (file:///$snippetsDir/input/modules/%E6%97%A5%E6%9C%AC%E8%AA%9E_error.pkl)
+
+xxx | text = renderer.renderDocument(value)
+             ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+at pkl.base#Module.output.text (pkl:base)