diff --git a/ChangeLog b/ChangeLog
index eaa1e5e..9d5c111 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,14 @@
+Sat Apr  7 10:28:40 2012  Aaron Patterson <aaron@tenderlovemaking.com>
+
+	* ext/psych/lib/psych.rb: bumping up psych version to match release.
+	* ext/psych/psych.gemspec: ditto
+
+Sat Apr  7 02:07:00 2012  Aaron Patterson <aaron@tenderlovemaking.com>
+
+	* ext/psych/parser.c: fall back to any encoding if the external
+	  encoding is wrong.  [ruby-core:44163]
+	* test/psych/test_encoding.rb: fix test
+
 Wed Apr  4 18:29:15 2012  NAKAMURA Usaku  <usa@ruby-lang.org>
 
 	* test/ruby/test_sleep.rb (TestSleep#test_sleep_5sec): syntax error.
diff --git a/ext/psych/lib/psych.rb b/ext/psych/lib/psych.rb
index 8257820..1895be6 100644
--- a/ext/psych/lib/psych.rb
+++ b/ext/psych/lib/psych.rb
@@ -93,7 +93,7 @@ require 'psych/handlers/document_stream'
 
 module Psych
   # The version is Psych you're using
-  VERSION         = '1.3.1'
+  VERSION         = '1.3.2'
 
   # The version of libyaml Psych is using
   LIBYAML_VERSION = Psych.libyaml_version.join '.'
diff --git a/ext/psych/parser.c b/ext/psych/parser.c
index 9808c6b..6f4c456 100644
--- a/ext/psych/parser.c
+++ b/ext/psych/parser.c
@@ -146,10 +146,11 @@ static VALUE transcode_io(VALUE src, int * parser_encoding)
 	return src;
     }
 
-    rb_raise(rb_eArgError, "YAML file must be UTF-8, UTF-16LE, or UTF-16BE, not %s",
-	    rb_enc_name(rb_enc_from_index(io_external_enc_index)));
+    /* If the external encoding is something we don't know how to handle,
+     * fall back to YAML_ANY_ENCODING. */
+    *parser_encoding = YAML_ANY_ENCODING;
 
-    return Qnil;
+    return src;
 }
 
 #endif
diff --git a/test/psych/test_encoding.rb b/test/psych/test_encoding.rb
index 8efb676..1abee0d 100644
--- a/test/psych/test_encoding.rb
+++ b/test/psych/test_encoding.rb
@@ -57,7 +57,7 @@ module Psych
       # If the external encoding isn't utf8, utf16le, or utf16be, we cannot
       # process the file.
       File.open(t.path, 'r', :encoding => 'SHIFT_JIS') do |f|
-        assert_raises ArgumentError do
+        assert_raises Psych::SyntaxError do
           Psych.load(f)
         end
       end