diff --git a/README.md b/README.md
index 77cc7ff4..4458cb5f 100644
--- a/README.md
+++ b/README.md
@@ -103,6 +103,8 @@ DATABASE_PASSWORD = os.getenv("DATABASE_PASSWORD")
 `load_dotenv` do not override existing System environment variables. To
 override, pass `override=True` to `load_dotenv()`.
 
+`load_dotenv` also accepts `encoding` parameter to open the `.env` file. The default encoding is platform dependent (whatever `locale.getpreferredencoding()` returns), but any encoding supported by Python can be used. See the [codecs](https://docs.python.org/3/library/codecs.html#standard-encodings) module for the list of supported encodings.
+
 You can use `find_dotenv()` method that will try to find a `.env` file
 by (a) guessing where to start using `__file__` or the working directory
 -- allowing this to work in non-file contexts such as IPython notebooks
@@ -298,6 +300,7 @@ Unreleased
 -----
 
 - Add type hints and expose them to users ([@qnighy])([#172])
+- `load_dotenv` and `dotenv_values` now accepts `encoding` paramater, defaults to `None` ([@theskumar])([@earlbread]) (#161)
 
 0.10.1
 -----
@@ -409,6 +412,7 @@ Unreleased
     [@hugochinchilla](https://github.com/hugochinchilla)).
 -   Improved test coverage.
 
+[#161]: https://github.com/theskumar/python-dotenv/issues/161
 [#78]: https://github.com/theskumar/python-dotenv/issues/78
 [#148]: https://github.com/theskumar/python-dotenv/issues/148
 [#158]: https://github.com/theskumar/python-dotenv/issues/158
@@ -423,3 +427,4 @@ Unreleased
 [@cjauvin]: https://github.com/cjauvin
 [@bbc2]: https://github.com/bbc2
 [@qnighy]: https://github.com/qnighy
+[@earlbread]: https://github.com/earlbread
diff --git a/src/dotenv/main.py b/src/dotenv/main.py
index c1c36226..715a08e2 100644
--- a/src/dotenv/main.py
+++ b/src/dotenv/main.py
@@ -111,11 +111,12 @@ def parse_stream(stream):
 
 class DotEnv():
 
-    def __init__(self, dotenv_path, verbose=False):
-        # type: (Union[Text, _PathLike, _StringIO], bool) -> None
+    def __init__(self, dotenv_path, verbose=False, encoding=None):
+        # type: (Union[Text, _PathLike, _StringIO], bool, Union[None, Text]) -> None
         self.dotenv_path = dotenv_path  # type: Union[Text,_PathLike, _StringIO]
         self._dict = None  # type: Optional[Dict[Text, Text]]
         self.verbose = verbose  # type: bool
+        self.encoding = encoding  # type: Union[None, Text]
 
     @contextmanager
     def _get_stream(self):
@@ -123,7 +124,7 @@ def _get_stream(self):
         if isinstance(self.dotenv_path, StringIO):
             yield self.dotenv_path
         elif os.path.isfile(self.dotenv_path):
-            with io.open(self.dotenv_path) as stream:
+            with io.open(self.dotenv_path, encoding=self.encoding) as stream:
                 yield stream
         else:
             if self.verbose:
@@ -349,16 +350,16 @@ def find_dotenv(filename='.env', raise_error_if_not_found=False, usecwd=False):
     return ''
 
 
-def load_dotenv(dotenv_path=None, stream=None, verbose=False, override=False):
-    # type: (Union[Text, _PathLike, None], Optional[_StringIO], bool, bool) -> bool
+def load_dotenv(dotenv_path=None, stream=None, verbose=False, override=False, **kwargs):
+    # type: (Union[Text, _PathLike, None], Optional[_StringIO], bool, bool, Union[None, Text]) -> bool
     f = dotenv_path or stream or find_dotenv()
-    return DotEnv(f, verbose=verbose).set_as_environment_variables(override=override)
+    return DotEnv(f, verbose=verbose, **kwargs).set_as_environment_variables(override=override)
 
 
-def dotenv_values(dotenv_path=None, stream=None, verbose=False):
-    # type: (Union[Text, _PathLike, None], Optional[_StringIO], bool) -> Dict[Text, Text]
+def dotenv_values(dotenv_path=None, stream=None, verbose=False, **kwargs):
+    # type: (Union[Text, _PathLike, None], Optional[_StringIO], bool, Union[None, Text]) -> Dict[Text, Text]
     f = dotenv_path or stream or find_dotenv()
-    return DotEnv(f, verbose=verbose).dict()
+    return DotEnv(f, verbose=verbose, **kwargs).dict()
 
 
 def run_command(command, env):