diff --git a/CHANGELOG.md b/CHANGELOG.md
index 31cd9593..fc061633 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,8 +6,11 @@
 
 ### Fixed
 - Fixed Bluetooth firmware updates sometimes failing on macOS. ([support#1787])
+- Fixed multibyte unicode characters not printing correctly in terminal when
+  split across Bluetooth packets. ([support#1743])
 
-[[support#1787]]: https://github.com/pybricks/support/issues/1787
+[support#1743]: https://github.com/pybricks/support/issues/1743
+[support#1787]: https://github.com/pybricks/support/issues/1787
 
 ## [2.3.0-beta.1] - 2023-11-24
 
diff --git a/src/terminal/sagas.test.ts b/src/terminal/sagas.test.ts
index f61b6321..26088258 100644
--- a/src/terminal/sagas.test.ts
+++ b/src/terminal/sagas.test.ts
@@ -1,5 +1,5 @@
 // SPDX-License-Identifier: MIT
-// Copyright (c) 2020-2023 The Pybricks Authors
+// Copyright (c) 2020-2024 The Pybricks Authors
 
 import PushStream from 'zen-push';
 import { AsyncSaga, delay } from '../../test';
@@ -86,6 +86,14 @@ describe('receiving stdout from hub', () => {
 
         await expect(saga.take()).resolves.toEqual(sendData(' '));
 
+        // ensure that unicode characters are handled correctly when split
+        // across buffers
+
+        saga.put(didReceiveWriteStdout(new Uint8Array([0xe4]).buffer));
+        await expect(saga.take()).resolves.toEqual(sendData(''));
+        saga.put(didReceiveWriteStdout(new Uint8Array([0xb8, 0xad]).buffer));
+        await expect(saga.take()).resolves.toEqual(sendData('中'));
+
         await saga.end();
     });
 });
diff --git a/src/terminal/sagas.ts b/src/terminal/sagas.ts
index 0169ca35..b5736a34 100644
--- a/src/terminal/sagas.ts
+++ b/src/terminal/sagas.ts
@@ -1,5 +1,5 @@
 // SPDX-License-Identifier: MIT
-// Copyright (c) 2020-2023 The Pybricks Authors
+// Copyright (c) 2020-2024 The Pybricks Authors
 
 import { AnyAction } from 'redux';
 import {
@@ -39,7 +39,8 @@ import { receiveData, sendData } from './actions';
 export type TerminalSagaContext = { terminal: TerminalContextValue };
 
 const encoder = new TextEncoder();
-const decoder = new TextDecoder();
+const uartDecoder = new TextDecoder();
+const stdoutDecoder = new TextDecoder();
 
 function* receiveUartData(action: ReturnType<typeof didNotify>): Generator {
     const { runtime: hubState, useLegacyStdio } = yield* select(
@@ -56,14 +57,14 @@ function* receiveUartData(action: ReturnType<typeof didNotify>): Generator {
         return;
     }
 
-    const value = decoder.decode(action.value.buffer);
+    const value = uartDecoder.decode(action.value.buffer, { stream: true });
     yield* put(sendData(value));
 }
 
 function* handleReceiveWriteStdout(
     action: ReturnType<typeof didReceiveWriteStdout>,
 ): Generator {
-    const value = decoder.decode(action.payload);
+    const value = stdoutDecoder.decode(action.payload, { stream: true });
     yield* put(sendData(value));
 }