diff --git a/rse/plugins/org.eclipse.rse.subsystems.files.core/src/org/eclipse/rse/subsystems/files/core/subsystems/RemoteFile.java b/rse/plugins/org.eclipse.rse.subsystems.files.core/src/org/eclipse/rse/subsystems/files/core/subsystems/RemoteFile.java
index 89efbc94c0f..62b0f477dda 100644
--- a/rse/plugins/org.eclipse.rse.subsystems.files.core/src/org/eclipse/rse/subsystems/files/core/subsystems/RemoteFile.java
+++ b/rse/plugins/org.eclipse.rse.subsystems.files.core/src/org/eclipse/rse/subsystems/files/core/subsystems/RemoteFile.java
@@ -1121,7 +1121,13 @@ public abstract class RemoteFile implements IRemoteFile,  IAdaptable, Comparable
 		String encoding = RemoteFileEncodingManager.getInstance().getEncoding(getHostName(), getAbsolutePath());
 		
 		if (encoding == null) {
-			encoding = getParentRemoteFileSubSystem().getRemoteEncoding();
+			
+			if (isRoot()) {
+				encoding = getParentRemoteFileSubSystem().getRemoteEncoding();
+			}
+			else {
+				encoding = getParentRemoteFile().getEncoding();
+			}
 		}
 		
 		return encoding;