diff --git a/changelogs/fragments/95-api-encoding.yml b/changelogs/fragments/95-api-encoding.yml
new file mode 100644
index 0000000..d3e0ea3
--- /dev/null
+++ b/changelogs/fragments/95-api-encoding.yml
@@ -0,0 +1,2 @@
+minor_changes:
+  - "api* modules - allow to set an encoding other than the default ASCII for communicating with the API (https://github.com/ansible-collections/community.routeros/pull/95)."
diff --git a/plugins/doc_fragments/api.py b/plugins/doc_fragments/api.py
index f436d64..6995c5c 100644
--- a/plugins/doc_fragments/api.py
+++ b/plugins/doc_fragments/api.py
@@ -63,6 +63,13 @@ options:
       - See also I(validate_cert_hostname). Only used when I(tls=true) and I(validate_certs=true).
     type: path
     version_added: 1.2.0
+  encoding:
+    description:
+      - Use the specified encoding when communicating with the RouterOS device.
+      - Default is C(ASCII). Note that C(UTF-8) requires librouteros 3.2.1 or newer.
+    type: str
+    default: ASCII
+    version_added: 2.1.0
 requirements:
   - librouteros
   - Python >= 3.6 (for librouteros)
diff --git a/plugins/module_utils/api.py b/plugins/module_utils/api.py
index f8b839f..7150dcc 100644
--- a/plugins/module_utils/api.py
+++ b/plugins/module_utils/api.py
@@ -43,10 +43,11 @@ def api_argument_spec():
         validate_certs=dict(type='bool', default=True),
         validate_cert_hostname=dict(type='bool', default=False),
         ca_path=dict(type='path'),
+        encoding=dict(type='str', default='ASCII')
     )
 
 
-def _ros_api_connect(module, username, password, host, port, use_tls, validate_certs, validate_cert_hostname, ca_path):
+def _ros_api_connect(module, username, password, host, port, use_tls, validate_certs, validate_cert_hostname, ca_path, encoding):
     '''Connect to RouterOS API.'''
     if not port:
         if use_tls:
@@ -54,6 +55,13 @@ def _ros_api_connect(module, username, password, host, port, use_tls, validate_c
         else:
             port = 8728
     try:
+        params = dict(
+            username=username,
+            password=password,
+            host=host,
+            port=port,
+            encoding=encoding,
+        )
         if use_tls:
             ctx = ssl.create_default_context(cafile=ca_path)
             wrap_context = ctx.wrap_socket
@@ -68,20 +76,8 @@ def _ros_api_connect(module, username, password, host, port, use_tls, validate_c
                 def wrap_context(*args, **kwargs):
                     kwargs.pop('server_hostname', None)
                     return ctx.wrap_socket(*args, server_hostname=host, **kwargs)
-            api = connect(
-                username=username,
-                password=password,
-                host=host,
-                ssl_wrapper=wrap_context,
-                port=port,
-            )
-        else:
-            api = connect(
-                username=username,
-                password=password,
-                host=host,
-                port=port,
-            )
+            params['ssl_wrapper'] = wrap_context
+        api = connect(**params)
     except Exception as e:
         connection = {
             'username': username,
@@ -105,4 +101,5 @@ def create_api(module):
         module.params['validate_certs'],
         module.params['validate_cert_hostname'],
         module.params['ca_path'],
+        module.params['encoding'],
     )
diff --git a/plugins/modules/api.py b/plugins/modules/api.py
index 85dc704..ddd026c 100644
--- a/plugins/modules/api.py
+++ b/plugins/modules/api.py
@@ -329,23 +329,26 @@ class ROS_api_module:
         # create api base path
         self.api_path = self.api_add_path(self.api, self.path)
 
-        # api call's
-        if self.add:
-            self.api_add()
-        elif self.remove:
-            self.api_remove()
-        elif self.update:
-            self.api_update()
-        elif self.query:
-            self.check_query()
-            self.api_query()
-        elif self.extended_query:
-            self.check_extended_query()
-            self.api_extended_query()
-        elif self.arbitrary:
-            self.api_arbitrary()
-        else:
-            self.api_get_all()
+        # api calls
+        try:
+            if self.add:
+                self.api_add()
+            elif self.remove:
+                self.api_remove()
+            elif self.update:
+                self.api_update()
+            elif self.query:
+                self.check_query()
+                self.api_query()
+            elif self.extended_query:
+                self.check_extended_query()
+                self.api_extended_query()
+            elif self.arbitrary:
+                self.api_arbitrary()
+            else:
+                self.api_get_all()
+        except UnicodeEncodeError as exc:
+            self.module.fail_json(msg='Error while encoding text: {error}'.format(error=exc))
 
     def check_query(self):
         where_index = self.query.find(' WHERE ')
diff --git a/plugins/modules/api_find_and_modify.py b/plugins/modules/api_find_and_modify.py
index 0d4a282..e1265a0 100644
--- a/plugins/modules/api_find_and_modify.py
+++ b/plugins/modules/api_find_and_modify.py
@@ -277,7 +277,7 @@ def main():
         for modification in modifications:
             try:
                 api_path.update(**modification)
-            except LibRouterosError as e:
+            except (LibRouterosError, UnicodeEncodeError) as e:
                 module.fail_json(
                     msg='Error while modifying for .id={id}: {error}'.format(
                         id=modification['.id'],