diff --git a/cms/djangoapps/contentstore/views/import_export.py b/cms/djangoapps/contentstore/views/import_export.py
index 8d7f1aac768f..df6d960bba36 100644
--- a/cms/djangoapps/contentstore/views/import_export.py
+++ b/cms/djangoapps/contentstore/views/import_export.py
@@ -154,7 +154,7 @@ def wfile(filename, dirname):
                     sf.write("Extracting")
 
                 tar_file = tarfile.open(temp_filepath)
-                tar_file.extractall(course_dir + '/')
+                tar_file.extractall((course_dir + '/').encode('utf-8'))
 
                 with open(status_file, 'w+') as sf:
                     sf.write("Verifying")
diff --git a/common/lib/xmodule/xmodule/modulestore/tests/test_mongo.py b/common/lib/xmodule/xmodule/modulestore/tests/test_mongo.py
index 6f3276bf446a..ba1266cb146b 100644
--- a/common/lib/xmodule/xmodule/modulestore/tests/test_mongo.py
+++ b/common/lib/xmodule/xmodule/modulestore/tests/test_mongo.py
@@ -2,8 +2,10 @@
 # pylint: disable=E0611
 from nose.tools import assert_equals, assert_raises, \
     assert_not_equals, assert_false
+from itertools import ifilter
 # pylint: enable=E0611
 import pymongo
+import logging
 from uuid import uuid4
 
 from xblock.fields import Scope
@@ -19,6 +21,7 @@
 
 from xmodule.modulestore.tests.test_modulestore import check_path_to_location
 
+log = logging.getLogger(__name__)
 
 HOST = 'localhost'
 PORT = 27017
@@ -59,7 +62,7 @@ def initdb():
         #
         draft_store = DraftModuleStore(HOST, DB, COLLECTION, FS_ROOT, RENDER_TEMPLATE, default_class=DEFAULT_CLASS)
         # Explicitly list the courses to load (don't want the big one)
-        courses = ['toy', 'simple', 'simple_with_draft']
+        courses = ['toy', 'simple', 'simple_with_draft', 'test_unicode']
         import_from_xml(store, DATA_DIR, courses, draft_store=draft_store, static_content_store=content_store)
 
         # also test a course with no importing of static content
@@ -86,6 +89,19 @@ def setUp(self):
     def tearDown(self):
         pass
 
+    def get_course_by_id(self, name):
+        """
+        Returns the first course with `id` of `name`, or `None` if there are none.
+        """
+        courses = self.store.get_courses()
+        return next(ifilter(lambda x: x.id == name, courses), None)
+
+    def course_with_id_exists(self, name):
+        """
+        Returns true iff there exists some course with `id` of `name`.
+        """
+        return (self.get_course_by_id(name) is not None)
+
     def test_init(self):
         '''Make sure the db loads, and print all the locations in the db.
         Call this directly from failing tests to see what is loaded'''
@@ -100,12 +116,12 @@ def test_mongo_modulestore_type(self):
     def test_get_courses(self):
         '''Make sure the course objects loaded properly'''
         courses = self.store.get_courses()
-        assert_equals(len(courses), 4)
-        courses.sort(key=lambda c: c.id)
-        assert_equals(courses[0].id, 'edX/simple/2012_Fall')
-        assert_equals(courses[1].id, 'edX/simple_with_draft/2012_Fall')
-        assert_equals(courses[2].id, 'edX/test_import_course/2012_Fall')
-        assert_equals(courses[3].id, 'edX/toy/2012_Fall')
+        assert_equals(len(courses), 5)
+        assert self.course_with_id_exists('edX/simple/2012_Fall')
+        assert self.course_with_id_exists('edX/simple_with_draft/2012_Fall')
+        assert self.course_with_id_exists('edX/test_import_course/2012_Fall')
+        assert self.course_with_id_exists('edX/test_unicode/2012_Fall')
+        assert self.course_with_id_exists('edX/toy/2012_Fall')
 
     def test_loads(self):
         assert_not_equals(
@@ -120,6 +136,22 @@ def test_loads(self):
             self.store.get_item("i4x://edX/toy/video/Welcome"),
             None)
 
+    def test_unicode_loads(self):
+        assert_not_equals(
+            self.store.get_item("i4x://edX/test_unicode/course/2012_Fall"),
+            None)
+        # All items with ascii-only filenames should load properly.
+        assert_not_equals(
+            self.store.get_item("i4x://edX/test_unicode/video/Welcome"),
+            None)
+        assert_not_equals(
+            self.store.get_item("i4x://edX/test_unicode/video/Welcome"),
+            None)
+        assert_not_equals(
+            self.store.get_item("i4x://edX/test_unicode/chapter/Overview"),
+            None)
+
+
     def test_find_one(self):
         assert_not_equals(
             self.store._find_one(Location("i4x://edX/toy/course/2012_Fall")),
@@ -153,15 +185,15 @@ def test_get_courses_has_no_templates(self):
             )
 
     def test_static_tab_names(self):
-        courses = self.store.get_courses()
 
         def get_tab_name(index):
             """
             Helper function for pulling out the name of a given static tab.
 
-            Assumes the information is desired for courses[1] ('toy' course).
+            Assumes the information is desired for courses[4] ('toy' course).
             """
-            return courses[2].tabs[index]['name']
+            course = self.get_course_by_id('edX/toy/2012_Fall')
+            return course.tabs[index]['name']
 
         # There was a bug where model.save was not getting called after the static tab name
         # was set set for tabs that have a URL slug. 'Syllabus' and 'Resources' fall into that
diff --git a/common/lib/xmodule/xmodule/modulestore/xml.py b/common/lib/xmodule/xmodule/modulestore/xml.py
index dd7888179b3c..62fd6c30c975 100644
--- a/common/lib/xmodule/xmodule/modulestore/xml.py
+++ b/common/lib/xmodule/xmodule/modulestore/xml.py
@@ -173,7 +173,7 @@ def fallback_name(orig_name=None):
                 # Didn't load properly.  Fall back on loading as an error
                 # descriptor.  This should never error due to formatting.
 
-                msg = "Error loading from xml. " + str(err)[:200]
+                msg = "Error loading from xml. " + unicode(err)[:200]
                 log.warning(msg)
                 # Normally, we don't want lots of exception traces in our logs from common
                 # content problems.  But if you're debugging the xml loading code itself,
@@ -317,7 +317,8 @@ def try_load_course(self, course_dir):
         try:
             course_descriptor = self.load_course(course_dir, errorlog.tracker)
         except Exception as e:
-            msg = "ERROR: Failed to load course '{0}': {1}".format(course_dir, str(e))
+            msg = "ERROR: Failed to load course '{0}': {1}".format(course_dir.encode("utf-8"),
+                    unicode(e))
             log.exception(msg)
             errorlog.tracker(msg)
 
@@ -493,8 +494,9 @@ def _load_extra_content(self, system, course_descriptor, category, path, course_
                     module.save()
                     self.modules[course_descriptor.id][module.location] = module
                 except Exception, e:
-                    logging.exception("Failed to load {0}. Skipping... Exception: {1}".format(filepath, str(e)))
-                    system.error_tracker("ERROR: " + str(e))
+                    logging.exception("Failed to load %s. Skipping... \
+                            Exception: %s", filepath, unicode(e))
+                    system.error_tracker("ERROR: " + unicode(e))
 
     def get_instance(self, course_id, location, depth=0):
         """
diff --git a/common/lib/xmodule/xmodule/modulestore/xml_importer.py b/common/lib/xmodule/xmodule/modulestore/xml_importer.py
index a9a7601e334f..4a4b25774d94 100644
--- a/common/lib/xmodule/xmodule/modulestore/xml_importer.py
+++ b/common/lib/xmodule/xmodule/modulestore/xml_importer.py
@@ -31,7 +31,7 @@ def import_static_content(modules, course_loc, course_data_path, static_content_
             try:
                 content_path = os.path.join(dirname, filename)
                 if verbose:
-                    log.debug('importing static content {0}...'.format(content_path))
+                    log.debug('importing static content %s...', content_path)
 
                 fullname_with_subpath = content_path.replace(static_dir, '')  # strip away leading path from the name
                 if fullname_with_subpath.startswith('/'):
diff --git a/common/lib/xmodule/xmodule/seq_module.py b/common/lib/xmodule/xmodule/seq_module.py
index ebd49d75cf74..867eae19cecc 100644
--- a/common/lib/xmodule/xmodule/seq_module.py
+++ b/common/lib/xmodule/xmodule/seq_module.py
@@ -133,7 +133,7 @@ def definition_from_xml(cls, xml_object, system):
             except Exception as e:
                 log.exception("Unable to load child when parsing Sequence. Continuing...")
                 if system.error_tracker is not None:
-                    system.error_tracker("ERROR: " + str(e))
+                    system.error_tracker("ERROR: " + unicode(e))
                 continue
         return {}, children
 
diff --git a/common/lib/xmodule/xmodule/tests/test_import.py b/common/lib/xmodule/xmodule/tests/test_import.py
index 8f24112bc6e3..19232e383fce 100644
--- a/common/lib/xmodule/xmodule/tests/test_import.py
+++ b/common/lib/xmodule/xmodule/tests/test_import.py
@@ -368,6 +368,32 @@ def test_colon_in_url_name(self):
         html = modulestore.get_instance(course_id, loc)
         self.assertEquals(html.display_name, "Toy lab")
 
+    def test_unicode(self):
+        """Check that courses with unicode characters in filenames and in
+        org/course/name import properly. Currently, this means: (a) Having
+        files with unicode names does not prevent import; (b) if files are not
+        loaded because of unicode filenames, there are appropriate
+        exceptions/errors to that effect."""
+
+        print("Starting import")
+        modulestore = XMLModuleStore(DATA_DIR, course_dirs=['test_unicode'])
+        courses = modulestore.get_courses()
+        self.assertEquals(len(courses), 1)
+        course = courses[0]
+
+        print("course errors:")
+
+        # Expect to find an error/exception about characters in "®esources"
+        expect = "Invalid characters in '®esources'"
+        errors = [(msg.encode("utf-8"), err.encode("utf-8"))
+                    for msg, err in
+                    modulestore.get_item_errors(course.location)]
+
+        self.assertTrue(any(expect in msg or expect in err
+            for msg, err in errors))
+        chapters = course.get_children()
+        self.assertEqual(len(chapters), 3)
+
     def test_url_name_mangling(self):
         """
         Make sure that url_names are only mangled once.
diff --git a/common/test/data/test_unicode/about/end_date.html b/common/test/data/test_unicode/about/end_date.html
new file mode 100644
index 000000000000..a0990367ef8b
--- /dev/null
+++ b/common/test/data/test_unicode/about/end_date.html
@@ -0,0 +1 @@
+TBD
diff --git a/common/test/data/test_unicode/chapter/simple_html.xml b/common/test/data/test_unicode/chapter/simple_html.xml
new file mode 100644
index 000000000000..c07cf4a7c766
--- /dev/null
+++ b/common/test/data/test_unicode/chapter/simple_html.xml
@@ -0,0 +1,8 @@
+<chapter display_name="åñ html ƒile">
+    <sequential display_name="åñ html ƒile">
+        <html display_name="åñ html ƒile">
+            <p> This is upside down text:</p>
+            <p>˙ʇxəʇ uʍop əpısdn sı sıɥʇ</p>
+        </html>
+    </sequential>
+</chapter>
diff --git a/common/test/data/test_unicode/course.xml b/common/test/data/test_unicode/course.xml
new file mode 100644
index 000000000000..0375e11d3ac2
--- /dev/null
+++ b/common/test/data/test_unicode/course.xml
@@ -0,0 +1 @@
+<course org="edX" course="test_unicode" url_name="2012_Fall"/>
diff --git a/common/test/data/test_unicode/course/2012_Fall.xml b/common/test/data/test_unicode/course/2012_Fall.xml
new file mode 100644
index 000000000000..b402922bcb57
--- /dev/null
+++ b/common/test/data/test_unicode/course/2012_Fall.xml
@@ -0,0 +1,8 @@
+<course>
+  <chapter display_name="Overview">
+    <video url_name="Welcome" youtube_id_1_0="p2Q6BrNhdh8" display_name="Welcome"/>
+  </chapter>
+  <chapter url_name="sîmple_√ideo"/>
+  <chapter url_name="simple_html"/>
+  <chapter url_name="vertical_container"/>
+</course>
diff --git a/common/test/data/test_unicode/policies/2012_Fall.json b/common/test/data/test_unicode/policies/2012_Fall.json
new file mode 100644
index 000000000000..71f88849ec79
--- /dev/null
+++ b/common/test/data/test_unicode/policies/2012_Fall.json
@@ -0,0 +1,23 @@
+{
+    "course/2012_Fall": {
+        "graceperiod": "2 days 5 hours 59 minutes 59 seconds",
+        "start": "2015-07-17T12:00",
+        "display_name": "Üñîçø∂e †es† Course",
+        "graded": "true",
+	"tabs": [
+          {"type": "courseware"},
+          {"type": "course_info", "name": "Course Info"},
+          {"type": "static_tab", "url_slug": "syllabus", "name": "ßyllabus"},
+          {"type": "static_tab", "url_slug": "resources", "name": "®esources"},
+          {"type": "discussion", "name": "∂iscussion"},
+          {"type": "wiki", "name": "∑iki"},
+          {"type": "progress", "name": "πrogress"}
+        ]
+    },
+    "chapter/Overview": {
+        "display_name": "O√erview"
+    },
+    "video/Welcome": {
+        "display_name": "Welcome"
+    }
+}
diff --git a/common/test/data/test_unicode/sequential/vertical_sequential.xml b/common/test/data/test_unicode/sequential/vertical_sequential.xml
new file mode 100644
index 000000000000..695e640243d5
--- /dev/null
+++ b/common/test/data/test_unicode/sequential/vertical_sequential.xml
@@ -0,0 +1,4 @@
+<sequential>
+    <vertical filename="vertical_test" slug="vertical_test" />
+    <html slug="unicode">…</html>
+</sequential>
\ No newline at end of file
diff --git "a/common/test/data/test_unicode/static/unic\303\270\342\210\202e\314\201.txt" "b/common/test/data/test_unicode/static/unic\303\270\342\210\202e\314\201.txt"
new file mode 100644
index 000000000000..44d66a740044
--- /dev/null
+++ "b/common/test/data/test_unicode/static/unic\303\270\342\210\202e\314\201.txt"
@@ -0,0 +1,10 @@
+
+Upside down unicode text (http://www.sunnyneo.com/upsidedowntext.php?)
+
+˙ʇʇɐld uoɯəl plos əɥs ˙pəʌıl əuɹʎq ʎʇʇəq əɹəɥʍ pɐoɹ əɥʇ uʍop əɯɐɔ ʍoɔ-ooɯ əɥʇ 
+˙ooʞɔnʇ ʎqɐq sɐʍ əɥ ˙əɔɐɟ ʎɹıɐɥ ɐ pɐɥ əɥ :ssɐlƃ ɐ ɥƃnoɹɥʇ ɯıɥ ʇɐ pəʞool ɹəɥʇɐɟ 
+sıɥ :ʎɹoʇs ʇɐɥʇ ɯıɥ ploʇ ɹəɥʇɐɟ sıɥ 
+
+˙˙˙ooʞɔnʇ ʎqɐq pəɯɐu ʎoq əlʇʇıl suəɔıu ɐ ʇəɯ pɐoɹ əɥʇ ƃuolɐ uʍop ƃuıɯoɔ sɐʍ ʇɐɥʇ 
+ʍoɔ-ooɯ sıɥʇ puɐ pɐoɹ əɥʇ ƃuolɐ uʍop ƃuıɯoɔ ʍoɔ-ooɯ ɐ sɐʍ əɹəɥʇ sɐʍ ʇı əɯıʇ pooƃ 
+ʎɹəʌ ɐ puɐ əɯıʇ ɐ uodn əɔuo
diff --git "a/common/test/data/test_unicode/tabs/\302\256esources.html" "b/common/test/data/test_unicode/tabs/\302\256esources.html"
new file mode 100644
index 000000000000..0f6bdf0984ba
--- /dev/null
+++ "b/common/test/data/test_unicode/tabs/\302\256esources.html"
@@ -0,0 +1 @@
+<div>resources!</div>
diff --git a/common/test/data/test_unicode/vertical/vertical_test.xml b/common/test/data/test_unicode/vertical/vertical_test.xml
new file mode 100644
index 000000000000..82df156dfe18
--- /dev/null
+++ b/common/test/data/test_unicode/vertical/vertical_test.xml
@@ -0,0 +1,3 @@
+<vertical>
+    <video url_name="separate_file_video"/>
+</vertical>
diff --git a/requirements/edx/github.txt b/requirements/edx/github.txt
index 372aa91f8418..5c8c7d79e180 100644
--- a/requirements/edx/github.txt
+++ b/requirements/edx/github.txt
@@ -16,5 +16,5 @@
 # Our libraries:
 -e git+https://github.com/edx/XBlock.git@aa0d60627#egg=XBlock
 -e git+https://github.com/edx/codejail.git@0a1b468#egg=codejail
--e git+https://github.com/edx/diff-cover.git@v0.2.2#egg=diff_cover
+-e git+https://github.com/edx/diff-cover.git@v0.2.3#egg=diff_cover
 -e git+https://github.com/edx/js-test-tool.git@v0.0.7#egg=js_test_tool