diff --git a/spec/anchor.spec.js b/spec/anchor.spec.js
index f4f6b743f..b493cf3a4 100644
--- a/spec/anchor.spec.js
+++ b/spec/anchor.spec.js
@@ -88,6 +88,26 @@ describe('Anchor Button TestCase', function () {
             expect(this.el.innerHTML.indexOf('<a href="http://test.com">lorem ipsum</a>')).toBe(0);
         });
 
+        // https://github.com/yabwe/medium-editor/pull/1364
+        it('should create a link containing utf-8 characters correctly when user presses enter', function () {
+            spyOn(MediumEditor.prototype, 'createLink').and.callThrough();
+            var editor = this.newMediumEditor('.editor'),
+                toolbar = editor.getExtensionByName('toolbar'),
+                button, input;
+
+            selectElementContents(editor.elements[0]);
+            button = toolbar.getToolbarElement().querySelector('[data-action="createLink"]');
+            fireEvent(button, 'click');
+            input = editor.getExtensionByName('anchor').getInput();
+            input.value = 'http://www.st\u00E4dtlifest.ch/';
+            fireEvent(input, 'keyup', {
+                keyCode: MediumEditor.util.keyCode.ENTER
+            });
+            expect(editor.createLink).toHaveBeenCalled();
+            // A trailing <br> may be added when insertHTML is used to add the link internally.
+            expect(this.el.innerHTML.indexOf('<a href="http://www.st\u00E4dtlifest.ch/">lorem ipsum</a>')).toBe(0);
+        });
+
         it('should remove the extra white spaces in the link when user presses enter', function () {
             spyOn(MediumEditor.prototype, 'createLink').and.callThrough();
             var editor = this.newMediumEditor('.editor'),
diff --git a/src/js/core.js b/src/js/core.js
index e71455b95..a7b0a3e77 100644
--- a/src/js/core.js
+++ b/src/js/core.js
@@ -1149,6 +1149,7 @@
                             this.importSelection(exportedSelection);
                         } else {
                             this.options.ownerDocument.execCommand('createLink', false, targetUrl);
+                            MediumEditor.util.ensureHref(MediumEditor.selection.getSelectionStart(this.options.ownerDocument), targetUrl);
                         }
 
                         if (this.options.targetBlank || opts.target === '_blank') {
diff --git a/src/js/util.js b/src/js/util.js
index c2bf06c45..a94eeb4ef 100644
--- a/src/js/util.js
+++ b/src/js/util.js
@@ -572,6 +572,25 @@
             return doc.execCommand('formatBlock', false, tagName);
         },
 
+        /*
+         * this function is called to ensure href is set correctly as FF does "encodeURI" on href value when execCommand createLink.
+         * see also https://bugzilla.mozilla.org/show_bug.cgi?id=451142
+         */
+        ensureHref: function (el, anchorUrl) {
+            var i, url = anchorUrl;
+            if (el.nodeName.toLowerCase() === 'a') {
+                el.attributes.href.value = url;
+            } else {
+                el = el.getElementsByTagName('a');
+
+                for (i = 0; i < el.length; i += 1) {
+                    if (encodeURI(url) === el[i].attributes.href.value) {
+                        el[i].attributes.href.value = url;
+                    }
+                }
+            }
+        },
+
         /**
          * Set target to blank on the given el element
          *