diff --git a/ext/sqlite3/statement.c b/ext/sqlite3/statement.c
index 608bb7b7..20bd53ea 100644
--- a/ext/sqlite3/statement.c
+++ b/ext/sqlite3/statement.c
@@ -111,6 +111,7 @@ static VALUE step(VALUE self)
   int value, length;
   VALUE list;
 #ifdef HAVE_RUBY_ENCODING_H
+  rb_encoding * internal_encoding;
   int enc_index;
 #endif
 
@@ -125,6 +126,7 @@ static VALUE step(VALUE self)
       VALUE db          = rb_iv_get(self, "@connection");
       VALUE encoding    = rb_funcall(db, rb_intern("encoding"), 0);
       enc_index = NIL_P(encoding) ? rb_utf8_encindex() : rb_to_encoding_index(encoding);
+      internal_encoding = rb_default_internal_encoding();
   }
 #endif
 
@@ -154,6 +156,8 @@ static VALUE step(VALUE self)
                 );
 #ifdef HAVE_RUBY_ENCODING_H
                 rb_enc_associate_index(str, enc_index);
+                if(internal_encoding)
+                  str = rb_str_export_to_enc(str, internal_encoding);
 #endif
                 rb_ary_push(list, str);
               }
diff --git a/test/test_encoding.rb b/test/test_encoding.rb
index 85860851..9e28438c 100644
--- a/test/test_encoding.rb
+++ b/test/test_encoding.rb
@@ -11,6 +11,24 @@ def setup
       @db.execute(@create);
     end
 
+    def test_default_internal_is_honored
+      before_enc = Encoding.default_internal
+
+      str = "壁に耳あり、障子に目あり"
+      stmt = @db.prepare('insert into ex(data) values (?)')
+      stmt.bind_param 1, str
+      stmt.step
+
+      Encoding.default_internal = 'EUC-JP'
+      string = @db.execute('select data from ex').first.first
+
+      assert_equal Encoding.default_internal, string.encoding
+      assert_equal str.encode('EUC-JP'), string
+      assert_equal str, string.encode(str.encoding)
+    ensure
+      Encoding.default_internal = before_enc
+    end
+
     def test_blob_is_binary
       str = "猫舌"
       @db.execute('create table foo(data text)')