diff --git a/src/haikufns.c b/src/haikufns.c
index 3e3104193e0..bee41e4ec0a 100644
--- a/src/haikufns.c
+++ b/src/haikufns.c
@@ -2482,7 +2482,10 @@ Optional arg SAVE_TEXT, if non-nil, specifies some text to show in the entry fie
     error ("Trying to use a menu from within a menu-entry");
 
   if (!NILP (dir))
-    CHECK_STRING (dir);
+    {
+      CHECK_STRING (dir);
+      dir = DECODE_FILE (dir);
+    }
 
   if (!NILP (save_text))
     CHECK_STRING (save_text);
@@ -2513,7 +2516,7 @@ Optional arg SAVE_TEXT, if non-nil, specifies some text to show in the entry fie
   value = build_string (file_name);
   free (file_name);
 
-  return value;
+  return ENCODE_FILE (value);
 }
 
 DEFUN ("haiku-put-resource", Fhaiku_put_resource, Shaiku_put_resource,