diff --git a/HISTORY.rst b/HISTORY.rst
index 9b6c8e0b..a905f858 100644
--- a/HISTORY.rst
+++ b/HISTORY.rst
@@ -24,6 +24,7 @@ test-driven methodologies, and modern toolchains for unrivaled success.
 * Addressed an issue where passing a relative path (``--project-dir``) to the `pio project init <https://docs.platformio.org/en/latest/core/userguide/project/cmd_init.html>`__ command resulted in an error (`issue #4847 <https://github.com/platformio/platformio-core/issues/4847>`_)
 * Resolved an issue related to the relative package path in the `pio pkg publish <https://docs.platformio.org/en/latest/core/userguide/pkg/cmd_publish.html>`__ command
 * Resolved an issue where the |LDF| selected an incorrect library version (`issue #4860 <https://github.com/platformio/platformio-core/issues/4860>`_)
+* Resolved an issue with the ``hexlify`` filter in the `device monitor <https://docs.platformio.org/en/latest/core/userguide/device/cmd_monitor.html>`__ command, ensuring proper representation of characters with Unicode code points higher than 127 (`issue #4732 <https://github.com/platformio/platformio-core/issues/4732>`_)
 
 6.1.13 (2024-01-12)
 ~~~~~~~~~~~~~~~~~~~
diff --git a/docs b/docs
index 09232d57..37c10d2f 160000
--- a/docs
+++ b/docs
@@ -1 +1 @@
-Subproject commit 09232d5768dcbbf87e3c8713575e200ae3ae6522
+Subproject commit 37c10d2f72c18d1b3f84db661e96fa7732d2c7ad
diff --git a/platformio/device/monitor/command.py b/platformio/device/monitor/command.py
index 87f64449..b3dc0a0e 100644
--- a/platformio/device/monitor/command.py
+++ b/platformio/device/monitor/command.py
@@ -58,7 +58,7 @@ from platformio.project.options import ProjectOptions
     "--encoding",
     help=(
         "Set the encoding for the serial port "
-        "(e.g. hexlify, Latin1, UTF-8) [default=%s]"
+        "(e.g. hexlify, Latin-1, UTF-8) [default=%s]"
         % ProjectOptions["env.monitor_encoding"].default
     ),
 )
diff --git a/platformio/device/monitor/filters/base.py b/platformio/device/monitor/filters/base.py
index e773ed65..5a65f800 100644
--- a/platformio/device/monitor/filters/base.py
+++ b/platformio/device/monitor/filters/base.py
@@ -25,11 +25,12 @@ from platformio.project.config import ProjectConfig
 class DeviceMonitorFilterBase(miniterm.Transform):
     def __init__(self, options=None):
         """Called by PlatformIO to pass context"""
-        miniterm.Transform.__init__(self)
+        super().__init__()
 
         self.options = options or {}
         self.project_dir = self.options.get("project_dir")
         self.environment = self.options.get("environment")
+        self._running_terminal = None
 
         self.config = ProjectConfig.get_instance()
         if not self.environment:
@@ -47,6 +48,12 @@ class DeviceMonitorFilterBase(miniterm.Transform):
     def NAME(self):
         raise NotImplementedError("Please declare NAME attribute for the filter class")
 
+    def set_running_terminal(self, terminal):
+        self._running_terminal = terminal
+
+    def get_running_terminal(self):
+        return self._running_terminal
+
 
 def register_filters(platform=None, options=None):
     # project filters
diff --git a/platformio/device/monitor/filters/hexlify.py b/platformio/device/monitor/filters/hexlify.py
index 28e83bfb..40fc203e 100644
--- a/platformio/device/monitor/filters/hexlify.py
+++ b/platformio/device/monitor/filters/hexlify.py
@@ -24,12 +24,18 @@ class Hexlify(DeviceMonitorFilterBase):
         super().__init__(*args, **kwargs)
         self._counter = 0
 
+    def set_running_terminal(self, terminal):
+        # force to Latin-1, issue #4732
+        if terminal.input_encoding == "UTF-8":
+            terminal.set_rx_encoding("Latin-1")
+        super().set_running_terminal(terminal)
+
     def rx(self, text):
         result = ""
-        for b in serial.iterbytes(text):
+        for c in serial.iterbytes(text):
             if (self._counter % 16) == 0:
                 result += "\n{:04X} | ".format(self._counter)
-            asciicode = ord(b)
+            asciicode = ord(c)
             if asciicode <= 255:
                 result += "{:02X} ".format(asciicode)
             else:
diff --git a/platformio/device/monitor/terminal.py b/platformio/device/monitor/terminal.py
index 7b2a9b91..a3abf857 100644
--- a/platformio/device/monitor/terminal.py
+++ b/platformio/device/monitor/terminal.py
@@ -110,6 +110,12 @@ def new_terminal(options):
     term.raw = options["raw"]
     term.set_rx_encoding(options["encoding"])
     term.set_tx_encoding(options["encoding"])
+    for ts in (term.tx_transformations, term.rx_transformations):
+        for t in ts:
+            try:
+                t.set_running_terminal(term)
+            except AttributeError:
+                pass
     return term
 
 
diff --git a/platformio/project/options.py b/platformio/project/options.py
index 51611d24..3d9c8969 100644
--- a/platformio/project/options.py
+++ b/platformio/project/options.py
@@ -549,7 +549,7 @@ ProjectOptions = OrderedDict(
             ConfigEnvOption(
                 group="monitor",
                 name="monitor_encoding",
-                description="Custom encoding (e.g. hexlify, Latin1, UTF-8)",
+                description="Custom encoding (e.g. hexlify, Latin-1, UTF-8)",
                 default="UTF-8",
             ),
             # Library