diff --git a/awx/main/models/projects.py b/awx/main/models/projects.py
index 4930494a3d..fec941ecaa 100644
--- a/awx/main/models/projects.py
+++ b/awx/main/models/projects.py
@@ -54,7 +54,7 @@ class ProjectOptions(models.Model):
     @classmethod
     def get_local_path_choices(cls):
         if os.path.exists(settings.PROJECTS_ROOT):
-            paths = [x for x in os.listdir(settings.PROJECTS_ROOT)
+            paths = [x.decode('utf-8') for x in os.listdir(settings.PROJECTS_ROOT)
                      if os.path.isdir(os.path.join(settings.PROJECTS_ROOT, x))
                      and not x.startswith('.') and not x.startswith('_')]
             qs = Project.objects.filter(active=True)
diff --git a/awx/main/tests/base.py b/awx/main/tests/base.py
index 8da29fa53e..b2422ef93b 100644
--- a/awx/main/tests/base.py
+++ b/awx/main/tests/base.py
@@ -174,11 +174,15 @@ class BaseTestMixin(object):
         return results
 
     def make_project(self, name, description='', created_by=None,
-                     playbook_content='', role_playbooks=None):
+                     playbook_content='', role_playbooks=None, unicode_prefix=True):
         if not os.path.exists(settings.PROJECTS_ROOT):
             os.makedirs(settings.PROJECTS_ROOT)
         # Create temp project directory.
-        project_dir = tempfile.mkdtemp(dir=settings.PROJECTS_ROOT)
+        if unicode_prefix:
+            tmp_prefix = u'\u2620tmp'
+        else:
+            tmp_prefix = 'tmp'
+        project_dir = tempfile.mkdtemp(prefix=tmp_prefix, dir=settings.PROJECTS_ROOT)
         self._temp_paths.append(project_dir)
         # Create temp playbook in project (if playbook content is given).
         if playbook_content: