diff --git a/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/internal/files/ui/propertypages/SystemFilePropertyPage.java b/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/internal/files/ui/propertypages/SystemFilePropertyPage.java
index 2391df0b1c0..95cafb9e9ea 100644
--- a/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/internal/files/ui/propertypages/SystemFilePropertyPage.java
+++ b/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/internal/files/ui/propertypages/SystemFilePropertyPage.java
@@ -18,6 +18,7 @@
  * David Dykstal (IBM) - [160776] format file size according to client system conventions and locale
  * David McKnight (IBM) - [173518] [refresh] Read only changes are not shown in RSE until the parent folder is refreshed
  * Kevin Doyle (IBM) - [197976] Changing a file to read-only when it is open doesn't update local copy
+ * Kevin Doyle (IBM) - [186125] Changing encoding of a file is not reflected when it was opened before
  ********************************************************************************/
 
 package org.eclipse.rse.internal.files.ui.propertypages;
@@ -26,6 +27,8 @@ import java.nio.charset.IllegalCharsetNameException;
 import java.util.Date;
 import java.util.List;
 
+import org.eclipse.core.resources.IFile;
+import org.eclipse.core.runtime.CoreException;
 import org.eclipse.core.runtime.NullProgressMonitor;
 import org.eclipse.rse.core.RSECorePlugin;
 import org.eclipse.rse.core.events.ISystemResourceChangeEvents;
@@ -84,6 +87,7 @@ public class SystemFilePropertyPage extends SystemBasePropertyPage
 	protected String errorMessage;	
     protected boolean initDone = false;
     protected boolean wasReadOnly = false;
+    protected String prevEncoding;
     
     private boolean encodingFieldAdded = false;
     private String defaultEncoding = null;
@@ -457,7 +461,8 @@ public class SystemFilePropertyPage extends SystemBasePropertyPage
 	    	otherEncodingCombo.setItems(encodingStrings);
 
 	    	String encoding = file.getEncoding();
-
+	    	prevEncoding = encoding;
+	    	
 	    	// if the encoding is the same as the default encoding, then we want to choose the default encoding option
 	    	if (encoding.equalsIgnoreCase(defaultEncoding)) {
 	    		updateEncodingGroupState(true);
@@ -477,14 +482,14 @@ public class SystemFilePropertyPage extends SystemBasePropertyPage
 	{
 		boolean ok = super.performOk();
 		boolean readOnlySelected = cbReadonlyPrompt != null ? cbReadonlyPrompt.getSelection() : false;
+		IRemoteFile remoteFile = getRemoteFile();
+		
 		if (ok && (cbReadonlyPrompt!=null) && 
 				((readOnlySelected && !wasReadOnly) || 
 				 (!readOnlySelected && wasReadOnly)))
 		{
    		  try
     	  {
-   		   IRemoteFile remoteFile = getRemoteFile();
-
            // get old can write attribute
            boolean oldCanWrite = remoteFile.canWrite();
 
@@ -535,8 +540,18 @@ public class SystemFilePropertyPage extends SystemBasePropertyPage
 		}
 		
 	    // set the encoding
-		if (encodingFieldAdded) {
-			RemoteFileEncodingManager.getInstance().setEncoding(getRemoteFile().getParentRemoteFileSubSystem().getHost().getHostName(), getRemoteFile().getAbsolutePath(), getSelectedEncoding());
+		String selectedEncoding = getSelectedEncoding();
+		if (ok && encodingFieldAdded && prevEncoding != null && !prevEncoding.equals(selectedEncoding)) {
+			RemoteFileEncodingManager.getInstance().setEncoding(getRemoteFile().getParentRemoteFileSubSystem().getHost().getHostName(), getRemoteFile().getAbsolutePath(), selectedEncoding);
+			
+			SystemEditableRemoteFile editable = new SystemEditableRemoteFile(remoteFile);
+			if (editable.checkOpenInEditor() != ISystemEditableRemoteObject.NOT_OPEN) {
+				IFile file = editable.getLocalResource();
+				try {
+					file.setCharset(selectedEncoding, null);
+				} catch (CoreException e) {
+				}
+			}
 		}
 		
 		return ok;
diff --git a/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/internal/files/ui/view/SystemViewRemoteFileAdapter.java b/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/internal/files/ui/view/SystemViewRemoteFileAdapter.java
index f5fb8273b85..0c635359add 100644
--- a/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/internal/files/ui/view/SystemViewRemoteFileAdapter.java
+++ b/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/internal/files/ui/view/SystemViewRemoteFileAdapter.java
@@ -33,6 +33,7 @@
  * Xuan Chen (IBM)        - [202949] [archives] copy a folder from one connection to an archive file in a different connection does not work
  * Kevin Doyle 		(IBM)		 - [204810] Saving file in Eclipse does not update remote file
  * David McKnight   (IBM)        - [207178] changing list APIs for file service and subsystems
+ * Kevin Doyle      (IBM)		 - [186125] Changing encoding of a file is not reflected when it was opened before
  ********************************************************************************/
 
 package org.eclipse.rse.internal.files.ui.view;
@@ -274,11 +275,9 @@ public class SystemViewRemoteFileAdapter
 		boolean isArchive = false;
 
 		boolean canRead = true;
-		boolean canWrite = true;
 		boolean supportsSearch = true;
 		boolean supportsArchiveManagement = false;
 
-
 		// perf improvement... phil	
 		Object firstSelection = selection.getFirstElement();
 		IRemoteFile firstFile = null;
@@ -288,7 +287,6 @@ public class SystemViewRemoteFileAdapter
 			elementType = firstFile.isDirectory() || firstFile.isRoot() ? 1 : 0;
 			isArchive = firstFile.isArchive();
 			canRead = firstFile.canRead();
-			canWrite = firstFile.canWrite();
 			
 			supportsSearch = firstFile.getParentRemoteFileSubSystem().getParentRemoteFileSubSystemConfiguration().supportsSearch();
 			supportsArchiveManagement = firstFile.getParentRemoteFileSubSystem().getParentRemoteFileSubSystemConfiguration().supportsArchiveManagement();
@@ -2511,7 +2509,6 @@ public class SystemViewRemoteFileAdapter
 		boolean ok = true;
 		IRemoteFile file = (IRemoteFile) element;
 		IRemoteFileSubSystem ss = file.getParentRemoteFileSubSystem();
-		ISystemRegistry sr = RSECorePlugin.getTheSystemRegistry();
 		try
 		{
 			
@@ -2844,15 +2841,14 @@ public class SystemViewRemoteFileAdapter
 			{
 				try
 				{
-					boolean openedInSamePerspective = (editable.checkOpenInEditor() == ISystemEditableRemoteObject.OPEN_IN_SAME_PERSPECTIVE);
+					boolean isOpen = editable.checkOpenInEditor() != ISystemEditableRemoteObject.NOT_OPEN;
 					boolean isFileCached = isFileCached(editable, remoteFile);
 					if (isFileCached)
 					{
-						if (openedInSamePerspective)
-						{
+						if (!isOpen) {
 							editable.setLocalResourceProperties();
+							editable.addAsListener();
 						}
-						editable.addAsListener();
 						editable.openEditor();
 					}
 					else