diff --git a/CHANGELOG.md b/CHANGELOG.md
index d8581c3c87..b4659f5abe 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -10,6 +10,7 @@ This project adheres to [Semantic Versioning](http://semver.org/).
 - Fix not logging OpenAPI queries when `log-query=main-query` is enabled by @steve-chavez in #4226
 - Fix not logging explain query when `log-query=main-query` is enabled by @steve-chavez in #4319
 - Fix not logging transaction variables and db-pre-request function when `log-query=main-query` is enabled by @steve-chavez in #3934
+- Fix loading utf-8 config files with `ASCII` locale set in #4386
 
 ### Added
 
diff --git a/cabal.project.freeze b/cabal.project.freeze
index 33b7f7aa7d..969ea8cd03 100644
--- a/cabal.project.freeze
+++ b/cabal.project.freeze
@@ -1 +1 @@
-index-state: hackage.haskell.org 2025-07-08T15:50:10Z
+index-state: hackage.haskell.org 2025-10-13T04:53:27Z
diff --git a/nix/overlays/haskell-packages.nix b/nix/overlays/haskell-packages.nix
index 1e0feefd56..577e5162b3 100644
--- a/nix/overlays/haskell-packages.nix
+++ b/nix/overlays/haskell-packages.nix
@@ -50,6 +50,16 @@ let
       # jailbreak, because hspec limit for tests
       fuzzyset = prev.fuzzyset_0_2_4;
 
+      # TODO: Remove once available in nixpkgs haskellPackages
+      configurator-pg =
+        prev.callHackageDirect
+          {
+            pkg = "configurator-pg";
+            ver = "0.2.11";
+            sha256 = "sha256-mtGtNawDJgz2ZIEVca+IYXVu4oNw9xsfJiYWAqAbbgc=";
+          }
+          { };
+
       # Downgrade hasql and related packages while we are still on GHC 9.4 for the static build.
       hasql = lib.dontCheck (lib.doJailbreak prev.hasql_1_6_4_4);
       hasql-dynamic-statements = lib.dontCheck prev.hasql-dynamic-statements_0_3_1_5;
diff --git a/postgrest.cabal b/postgrest.cabal
index a42e05b4ea..ce3094a22a 100644
--- a/postgrest.cabal
+++ b/postgrest.cabal
@@ -106,7 +106,7 @@ library
                     , case-insensitive          >= 1.2 && < 1.3
                     , cassava                   >= 0.4.5 && < 0.6
                     , clock                     >= 0.8.3 && < 0.9.0
-                    , configurator-pg           >= 0.2 && < 0.3
+                    , configurator-pg           >= 0.2.11 && < 0.3
                     , containers                >= 0.5.7 && < 0.7
                     , cookie                    >= 0.4.2 && < 0.6
                     , directory                 >= 1.2.6 && < 1.4
diff --git a/stack.yaml b/stack.yaml
index 20de8d453e..0dabf21a65 100644
--- a/stack.yaml
+++ b/stack.yaml
@@ -9,6 +9,7 @@ nix:
   pure: false
 
 extra-deps:
+  - configurator-pg-0.2.11
   - fuzzyset-0.2.4
   - hasql-pool-1.0.1
   - jose-jwt-0.10.0
diff --git a/stack.yaml.lock b/stack.yaml.lock
index 32956204fc..17d4666356 100644
--- a/stack.yaml.lock
+++ b/stack.yaml.lock
@@ -4,6 +4,13 @@
 #   https://docs.haskellstack.org/en/stable/topics/lock_files
 
 packages:
+- completed:
+    hackage: configurator-pg-0.2.11@sha256:de0c56386591e85159436b0af04a8f15a4f4e156354e99709676c2c2ee959505,2850
+    pantry-tree:
+      sha256: 7b4daa4ea970335414f26b313a168cd12182b7b34ea8af2616c83d38699c4301
+      size: 2527
+  original:
+    hackage: configurator-pg-0.2.11
 - completed:
     hackage: fuzzyset-0.2.4@sha256:f1b6de8bf33277bf6255207541d65028f1f1ea93af5541b654c86b5674995485,1618
     pantry-tree:
diff --git a/test/io/configs/expected/utf-8.config b/test/io/configs/expected/utf-8.config
new file mode 100644
index 0000000000..dc8226011d
--- /dev/null
+++ b/test/io/configs/expected/utf-8.config
@@ -0,0 +1,40 @@
+db-aggregates-enabled = false
+db-anon-role = ""
+db-channel = "pgrst"
+db-channel-enabled = true
+db-extra-search-path = "public"
+db-hoisted-tx-settings = "statement_timeout,plan_filter.statement_cost_limit,default_transaction_isolation"
+db-max-rows = ""
+db-plan-enabled = false
+db-pool = 10
+db-pool-acquisition-timeout = 10
+db-pool-max-lifetime = 1800
+db-pool-max-idletime = 30
+db-pool-automatic-recovery = true
+db-pre-request = ""
+db-prepared-statements = true
+db-root-spec = ""
+db-schemas = "public"
+db-config = true
+db-pre-config = ""
+db-tx-end = "commit"
+db-uri = "postgresql://"
+jwt-aud = ""
+jwt-role-claim-key = ".\"role\""
+jwt-secret = ""
+jwt-secret-is-base64 = false
+jwt-cache-max-entries = 1000
+log-level = "crit"
+log-query = false
+openapi-mode = "follow-privileges"
+openapi-security-active = false
+openapi-server-proxy-uri = ""
+server-cors-allowed-origins = ""
+server-host = "!4"
+server-port = 3000
+server-trace-header = ""
+server-timing-enabled = false
+server-unix-socket = ""
+server-unix-socket-mode = "660"
+admin-server-host = "!4"
+admin-server-port = ""
diff --git a/test/io/configs/utf-8.config b/test/io/configs/utf-8.config
new file mode 100644
index 0000000000..9b205b3c9f
--- /dev/null
+++ b/test/io/configs/utf-8.config
@@ -0,0 +1,2 @@
+# Commènt utf-8 chàrs
+log-level = "crit"