diff --git a/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/files/ui/resources/SystemEditableRemoteFile.java b/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/files/ui/resources/SystemEditableRemoteFile.java
index 05bfc4dbfb5..959dc1d438f 100644
--- a/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/files/ui/resources/SystemEditableRemoteFile.java
+++ b/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/files/ui/resources/SystemEditableRemoteFile.java
@@ -581,7 +581,9 @@ public class SystemEditableRemoteFile implements ISystemEditableRemoteObject, IP
 				}
 				else
 				{
-					if (properties.getUsedBinaryTransfer() == remoteFile.isBinary())
+					if (properties.getUsedBinaryTransfer() == remoteFile.isBinary() &&
+							properties.getEncoding().equals(remoteFile.getEncoding()) // changed encodings matter too
+					)
 					{
 						// we already have same file, use the current file
 						refresh();