diff --git a/harbour/ChangeLog b/harbour/ChangeLog
index 5f0e7b0a3d..ff49224dae 100644
--- a/harbour/ChangeLog
+++ b/harbour/ChangeLog
@@ -10,6 +10,11 @@
      * Change, ! Fix, % Optimization, + Addition, - Removal, ; Comment
  */
 
+2012-11-22 19:16 UTC+0100 Viktor Szakats (harbour syenar.net)
+  * contrib/hbsqlit3/core.c
+    ! fixed sqlite_prepare() to convert strings to UTF-8
+      Patch by Marcelo Faria. Many thanks.
+
 2012-11-22 19:07 UTC+0100 Viktor Szakats (harbour syenar.net)
   * include/hbwinuni.h
     + added HB_WINAPI_FUNCTION_NAME() macro to form a WinAPI
diff --git a/harbour/contrib/hbsqlit3/core.c b/harbour/contrib/hbsqlit3/core.c
index 1fb5e6772b..8de9a7af26 100644
--- a/harbour/contrib/hbsqlit3/core.c
+++ b/harbour/contrib/hbsqlit3/core.c
@@ -825,28 +825,22 @@ HB_FUNC( SQLITE3_PREPARE )
 
    if( pHbSqlite3 && pHbSqlite3->db )
    {
-      PHB_ITEM SQL = hb_param( 2, HB_IT_STRING );
+      void *  hSQLText;
+      HB_SIZE nSQLText;
 
-      if( SQL )
-      {
-         const char *  pSQL  = hb_itemGetCPtr( SQL );
-         int           ulLen = ( int ) hb_itemGetCLen( SQL );
-         psqlite3_stmt pStmt;
-         const char *  pszTail;
+      const char * pszSQLText = hb_parstr_utf8( 2, &hSQLText, &nSQLText );
+      psqlite3_stmt pStmt;
+      const char * pszTail;
 
-         if( sqlite3_prepare_v2( pHbSqlite3->db, pSQL, ulLen, &pStmt, &pszTail ) == SQLITE_OK )
-         {
-            hb_retptr( pStmt );
-         }
-         else
-         {
-            sqlite3_finalize( pStmt );
-
-            hb_retptr( NULL );
-         }
-      }
+      if( sqlite3_prepare_v2( pHbSqlite3->db, pszSQLText, ( int ) nSQLText, &pStmt, &pszTail ) == SQLITE_OK )
+         hb_retptr( pStmt );
       else
-         hb_errRT_BASE_SubstR( EG_ARG, 0, NULL, HB_ERR_FUNCNAME, 1, hb_paramError( 2 ) );
+      {
+         sqlite3_finalize( pStmt );
+         hb_retptr( NULL );
+      }
+
+      hb_strfree( hSQLText );
    }
    else
       hb_errRT_BASE_SubstR( EG_ARG, 0, NULL, HB_ERR_FUNCNAME, 1, hb_paramError( 1 ) );