diff --git a/python/ray/function_manager.py b/python/ray/function_manager.py
index b42bdd842..f43fc8559 100644
--- a/python/ray/function_manager.py
+++ b/python/ray/function_manager.py
@@ -120,7 +120,7 @@ class FunctionActorManager:
             function_or_class.__name__ + ":" + string_file.getvalue())
 
         # Return a hash of the identifier in case it is too large.
-        return hashlib.sha1(collision_identifier.encode("ascii")).digest()
+        return hashlib.sha1(collision_identifier.encode("utf-8")).digest()
 
     def export(self, remote_function):
         """Pickle a remote function and export it to redis.
diff --git a/python/ray/tests/test_basic.py b/python/ray/tests/test_basic.py
index 0d540faa3..46c1ff5a0 100644
--- a/python/ray/tests/test_basic.py
+++ b/python/ray/tests/test_basic.py
@@ -743,6 +743,14 @@ def test_object_id_backward_compatibility(ray_start_regular):
     assert isinstance(object_ref, ray.ObjectRef)
 
 
+def test_nonascii_in_function_body(ray_start_regular):
+    @ray.remote
+    def return_a_greek_char():
+        return "φ"
+
+    assert ray.get(return_a_greek_char.remote()) == "φ"
+
+
 if __name__ == "__main__":
     import pytest
     sys.exit(pytest.main(["-v", __file__]))