diff --git a/awscli/argparser.py b/awscli/argparser.py
index 389d0b1d5c16..387ef0d036fc 100644
--- a/awscli/argparser.py
+++ b/awscli/argparser.py
@@ -11,6 +11,8 @@
 # ANY KIND, either express or implied. See the License for the specific
 # language governing permissions and limitations under the License.
 import argparse
+import sys
+import six
 from difflib import get_close_matches
 
 
@@ -43,6 +45,14 @@ def _check_value(self, action, value):
                 msg.extend(extra)
             raise argparse.ArgumentError(action, '\n'.join(msg))
 
+    def parse_known_args(self, args, namespace=None):
+        parsed, remaining = super(CLIArgParser, self).parse_known_args(args, namespace)
+        terminal_encoding = getattr(sys.stdin, 'encoding', 'utf-8')
+        for arg, value in vars(parsed).items():
+            if isinstance(value, six.binary_type):
+                setattr(parsed, arg, value.decode(terminal_encoding))
+        return parsed, remaining
+
 
 class MainArgParser(CLIArgParser):
     Formatter = argparse.RawTextHelpFormatter
diff --git a/awscli/argprocess.py b/awscli/argprocess.py
index eeef07d1d813..6aa78eecad6d 100644
--- a/awscli/argprocess.py
+++ b/awscli/argprocess.py
@@ -65,7 +65,7 @@ def _check_for_uri_param(param, value):
     try:
         return get_paramfile(value)
     except ResourceLoadingError as e:
-        raise ParamError(param, str(e))
+        raise ParamError(param, six.text_type(e))
 
 
 def detect_shape_structure(param):
@@ -163,7 +163,8 @@ def get_parse_method_for_param(self, param, value=None):
             check_val = value[0]
         else:
             check_val = value.strip()
-        if isinstance(check_val, str) and check_val.startswith(('[', '{')):
+        if isinstance(check_val, six.string_types) and check_val.startswith(
+                ('[', '{')):
             LOG.debug("Param %s looks like JSON, not considered for "
                       "param shorthand.", param.py_name)
             return
@@ -345,7 +346,7 @@ def _split_on_commas(self, value):
         try:
             return utils.split_on_commas(value)
         except ValueError as e:
-            raise ParamSyntaxError(str(e))
+            raise ParamSyntaxError(six.text_type(e))
 
 
 def unpack_cli_arg(parameter, value):
@@ -370,7 +371,7 @@ def unpack_cli_arg(parameter, value):
     elif parameter.type in COMPLEX_TYPES:
         return unpack_complex_cli_arg(parameter, value)
     else:
-        return str(value)
+        return six.text_type(value)
 
 
 def unpack_complex_cli_arg(parameter, value):
@@ -415,8 +416,8 @@ def unpack_scalar_cli_arg(parameter, value):
             raise ParamError(parameter, msg)
         return open(file_path, 'rb')
     elif parameter.type == 'boolean':
-        if isinstance(value, str) and value.lower() == 'false':
+        if isinstance(value, six.string_types) and value.lower() == 'false':
             return False
         return bool(value)
     else:
-        return str(value)
+        return six.text_type(value)
diff --git a/tests/unit/elasticbeanstalk/test_create_application.py b/tests/unit/elasticbeanstalk/test_create_application.py
new file mode 100644
index 000000000000..a12d6d415814
--- /dev/null
+++ b/tests/unit/elasticbeanstalk/test_create_application.py
@@ -0,0 +1,42 @@
+#!/usr/bin/env python
+# Copyright 2012-2013 Amazon.com, Inc. or its affiliates. All Rights Reserved.
+#
+# Licensed under the Apache License, Version 2.0 (the "License"). You
+# may not use this file except in compliance with the License. A copy of
+# the License is located at
+#
+#     http://aws.amazon.com/apache2.0/
+#
+# or in the "license" file accompanying this file. This file is
+# distributed on an "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF
+# ANY KIND, either express or implied. See the License for the specific
+# language governing permissions and limitations under the License.
+from tests.unit import BaseAWSCommandParamsTest, unittest
+import sys
+import six
+
+
+class TestUpdateConfigurationTemplate(BaseAWSCommandParamsTest):
+
+    prefix = 'elasticbeanstalk create-application'
+
+    def test_ascii(self):
+        cmdline = self.prefix
+        cmdline += ' --application-name FooBar'
+        result = {'ApplicationName': 'FooBar',}
+        self.assert_params_for_cmd(cmdline, result)
+
+    @unittest.skipIf(
+        six.PY3, 'Unicode cmd line test only is relevant to python2.')
+    def test_py2_bytestring_unicode(self):
+        # In Python2, sys.argv is a list of bytestrings that are encoded
+        # in whatever encoding the terminal uses.  We have an extra step
+        # where we need to decode the bytestring into unicode.  In
+        # python3, sys.argv is a list of unicode objects so this test
+        # doesn't make sense for python3.
+        cmdline = self.prefix
+        app_name = u'\u2713'
+        cmdline += u' --application-name %s' % app_name
+        cmdline = cmdline.encode(getattr(sys.stdin, 'encoding', 'utf-8'))
+        result = {'ApplicationName': u'\u2713',}
+        self.assert_params_for_cmd(cmdline, result)