diff --git a/src/plugins/texteditor/behaviorsettingspage.cpp b/src/plugins/texteditor/behaviorsettingspage.cpp
index 833620ef977..8fda3634e8a 100644
--- a/src/plugins/texteditor/behaviorsettingspage.cpp
+++ b/src/plugins/texteditor/behaviorsettingspage.cpp
@@ -195,7 +195,7 @@ void BehaviorSettingsPage::apply()
 
     if (s) {
         s->setValue(QLatin1String(Core::Constants::SETTINGS_DEFAULTTEXTENCODING),
-                    d->m_page->behaviorWidget->assignedCodec()->name());
+                    d->m_page->behaviorWidget->assignedCodecName());
     }
 }
 
diff --git a/src/plugins/texteditor/behaviorsettingswidget.cpp b/src/plugins/texteditor/behaviorsettingswidget.cpp
index e528a23812a..85f9e222810 100644
--- a/src/plugins/texteditor/behaviorsettingswidget.cpp
+++ b/src/plugins/texteditor/behaviorsettingswidget.cpp
@@ -28,6 +28,9 @@
 
 #include "tabsettingswidget.h"
 
+#include <coreplugin/coreconstants.h>
+#include <coreplugin/icore.h>
+
 #include <texteditor/typingsettings.h>
 #include <texteditor/storagesettings.h>
 #include <texteditor/behaviorsettings.h>
@@ -132,17 +135,30 @@ void BehaviorSettingsWidget::setActive(bool active)
 
 void BehaviorSettingsWidget::setAssignedCodec(QTextCodec *codec)
 {
+    const QString codecName = Core::ICore::settings()->value(
+                Core::Constants::SETTINGS_DEFAULTTEXTENCODING).toString();
+
+    int rememberedSystemPosition = -1;
     for (int i = 0; i < d->m_codecs.size(); ++i) {
         if (codec == d->m_codecs.at(i)) {
-            d->m_ui.encodingBox->setCurrentIndex(i);
-            break;
+            if (d->m_ui.encodingBox->itemText(i) == codecName) {
+                d->m_ui.encodingBox->setCurrentIndex(i);
+                return;
+            } else { // we've got System matching encoding - but have explicitly set the codec
+                rememberedSystemPosition = i;
+            }
         }
     }
+    if (rememberedSystemPosition != -1)
+        d->m_ui.encodingBox->setCurrentIndex(rememberedSystemPosition);
 }
 
-QTextCodec *BehaviorSettingsWidget::assignedCodec() const
+QByteArray BehaviorSettingsWidget::assignedCodecName() const
 {
-    return d->m_codecs.at(d->m_ui.encodingBox->currentIndex());
+    return d->m_ui.encodingBox->currentIndex() == 0
+            ? QByteArray("System")   // we prepend System to the available codecs
+            : d->m_codecs.at(d->m_ui.encodingBox->currentIndex())->name();
+
 }
 
 void BehaviorSettingsWidget::setCodeStyle(ICodeStylePreferences *preferences)
diff --git a/src/plugins/texteditor/behaviorsettingswidget.h b/src/plugins/texteditor/behaviorsettingswidget.h
index 9bdfec5bc18..4cbb7709f34 100644
--- a/src/plugins/texteditor/behaviorsettingswidget.h
+++ b/src/plugins/texteditor/behaviorsettingswidget.h
@@ -55,7 +55,7 @@ public:
     void setActive(bool active);
 
     void setAssignedCodec(QTextCodec *codec);
-    QTextCodec *assignedCodec() const;
+    QByteArray assignedCodecName() const;
 
     void setCodeStyle(ICodeStylePreferences *preferences);