diff --git a/changelogs/fragments/psrp-utf8-stdio.yaml b/changelogs/fragments/psrp-utf8-stdio.yaml
new file mode 100644
index 0000000000..25452d992b
--- /dev/null
+++ b/changelogs/fragments/psrp-utf8-stdio.yaml
@@ -0,0 +1,2 @@
+bugfixes:
+- psrp - Fix UTF-8 output - https://github.com/ansible/ansible/pull/46998
diff --git a/lib/ansible/module_utils/powershell/Ansible.ModuleUtils.CommandUtil.psm1 b/lib/ansible/module_utils/powershell/Ansible.ModuleUtils.CommandUtil.psm1
index e952a7ab21..263ea55883 100644
--- a/lib/ansible/module_utils/powershell/Ansible.ModuleUtils.CommandUtil.psm1
+++ b/lib/ansible/module_utils/powershell/Ansible.ModuleUtils.CommandUtil.psm1
@@ -156,6 +156,23 @@ namespace Ansible
                 StringBuilder lpBuffer,
             out IntPtr lpFilePart);
 
+        [DllImport("kernel32.dll", SetLastError = true)]
+        static extern IntPtr GetConsoleWindow();
+
+        [DllImport("kernel32.dll", SetLastError = true)]
+        static extern bool AllocConsole();
+
+        [DllImport("kernel32.dll", SetLastError = true)]
+        static extern bool FreeConsole();
+
+        [DllImport("kernel32.dll", SetLastError = true)]
+        static extern bool SetConsoleCP(
+            UInt32 wCodePageID);
+
+        [DllImport("kernel32.dll", SetLastError = true)]
+        static extern bool SetConsoleOutputCP(
+            UInt32 wCodePageID);
+
         [DllImport("shell32.dll", SetLastError = true)]
         static extern IntPtr CommandLineToArgvW(
             [MarshalAs(UnmanagedType.LPWStr)]
@@ -252,6 +269,16 @@ namespace Ansible
             if (environmentString != null)
                 lpEnvironment = Marshal.StringToHGlobalUni(environmentString.ToString());
 
+            // Create console if needed to be inherited by child process
+            bool isConsole = false;
+            if (GetConsoleWindow() == IntPtr.Zero) {
+                isConsole = AllocConsole();
+
+                // Set console input/output codepage to UTF-8
+                SetConsoleCP(65001);
+                SetConsoleOutputCP(65001);
+            }
+
             // Create new process and run
             StringBuilder argument_string = new StringBuilder(lpCommandLine);
             PROCESS_INFORMATION pi = new PROCESS_INFORMATION();
@@ -270,6 +297,11 @@ namespace Ansible
                 throw new Win32Exception("Failed to create new process");
             }
 
+            // Destroy console if we created it
+            if (isConsole) {
+                FreeConsole();
+            }
+
             // Setup the output buffers and get stdout/stderr
             FileStream stdout_fs = new FileStream(stdout_read, FileAccess.Read, 4096);
             StreamReader stdout = new StreamReader(stdout_fs, utf8_encoding, true, 4096);
diff --git a/test/integration/targets/connection_psrp/tests.yml b/test/integration/targets/connection_psrp/tests.yml
index c87d339888..ad700536dc 100644
--- a/test/integration/targets/connection_psrp/tests.yml
+++ b/test/integration/targets/connection_psrp/tests.yml
@@ -59,3 +59,27 @@
     assert:
       that:
       - async_out.stdout_lines == ["abc"]
+
+  - name: Output unicode characters from Powershell using PSRP
+    win_command: "powershell.exe -ExecutionPolicy ByPass -Command \"Write-Host '\U0001F4A9'\""
+    register: command_unicode_output
+
+  - name: Assert unicode output
+    assert:
+      that:
+      - command_unicode_output is changed
+      - command_unicode_output.rc == 0
+      - "command_unicode_output.stdout == '\U0001F4A9\n'"
+      - command_unicode_output.stderr == ''
+
+  - name: Output unicode characters from Powershell using PSRP
+    win_shell: "Write-Host '\U0001F4A9'"
+    register: shell_unicode_output
+
+  - name: Assert unicode output
+    assert:
+      that:
+      - shell_unicode_output is changed
+      - shell_unicode_output.rc == 0
+      - "shell_unicode_output.stdout == '\U0001F4A9\n'"
+      - shell_unicode_output.stderr == ''
diff --git a/test/integration/targets/win_module_utils/library/command_util_test.ps1 b/test/integration/targets/win_module_utils/library/command_util_test.ps1
index 0a0826cd54..3515112e38 100644
--- a/test/integration/targets/win_module_utils/library/command_util_test.ps1
+++ b/test/integration/targets/win_module_utils/library/command_util_test.ps1
@@ -76,6 +76,12 @@ Assert-Equals -actual $actual.rc -expected 0
 Assert-Equals -actual $actual.stdout -expected "stdout `r`n"
 Assert-Equals -actual $actual.stderr -expected "stderr `r`n"
 
+$test_name = "Test UTF8 output from stdout stream"
+$actual = Run-Command -command "powershell.exe -ExecutionPolicy ByPass -Command `"Write-Host '💩'`""
+Assert-Equals -actual $actual.rc -expected 0
+Assert-Equals -actual $actual.stdout -expected "💩`n"
+Assert-Equals -actual $actual.stderr -expected ""
+
 $test_name = "test default environment variable"
 Set-Item -Path env:TESTENV -Value "test"
 $actual = Run-Command -command "cmd.exe /c set"