diff --git a/autoload/gitgutter/utility.vim b/autoload/gitgutter/utility.vim
index 277be94..c58afe0 100644
--- a/autoload/gitgutter/utility.vim
+++ b/autoload/gitgutter/utility.vim
@@ -115,7 +115,7 @@ function! gitgutter#utility#set_repo_path(bufnr) abort
   " *               -2 - not tracked by git
 
   call gitgutter#utility#setbufvar(a:bufnr, 'path', -1)
-  let cmd = gitgutter#utility#cd_cmd(a:bufnr, g:gitgutter_git_executable.' ls-files --error-unmatch --full-name -- '.gitgutter#utility#shellescape(s:filename(a:bufnr)))
+  let cmd = gitgutter#utility#cd_cmd(a:bufnr, g:gitgutter_git_executable.' ls-files --error-unmatch --full-name -z -- '.gitgutter#utility#shellescape(s:filename(a:bufnr)))
 
   if g:gitgutter_async && gitgutter#async#available()
     if has('lambda')
@@ -202,8 +202,13 @@ function! s:exists_file(bufnr) abort
   return filereadable(s:abs_path(a:bufnr, 0))
 endfunction
 
+" Get rid of any trailing new line or SOH character.
+"
+" git ls-files -z produces output with null line termination.
+" Vim's system() replaces any null characters in the output
+" with SOH (start of header), i.e. ^A.
 function! s:strip_trailing_new_line(line) abort
-  return substitute(a:line, '\n$', '', '')
+  return substitute(a:line, '[[:cntrl:]]$', '', '')
 endfunction
 
 function! gitgutter#utility#windows()
diff --git a/test/test_gitgutter.vim b/test/test_gitgutter.vim
index 1e13cc6..4781e82 100644
--- a/test/test_gitgutter.vim
+++ b/test/test_gitgutter.vim
@@ -191,6 +191,20 @@ function Test_filename_leading_dash()
 endfunction
 
 
+function Test_filename_umlaut()
+  call system('touch -- fixtüre.txt && git add -- fixtüre.txt')
+  edit fixtüre.txt
+  normal ggo*
+  call s:trigger_gitgutter()
+
+  let expected = [
+        \ 'line=1  id=3000  name=GitGutterLineAdded',
+        \ 'line=2  id=3001  name=GitGutterLineAdded'
+        \ ]
+  call assert_equal(expected, s:signs('fixtüre.txt'))
+endfunction
+
+
 " FIXME: this test fails when it is the first (or only) test to be run
 function Test_follow_symlink()
   let tmp = 'symlink'