diff --git a/compiler/src/prog8/compiler/Compiler.kt b/compiler/src/prog8/compiler/Compiler.kt
index 5cb3cc0e8..a32d2b5fb 100644
--- a/compiler/src/prog8/compiler/Compiler.kt
+++ b/compiler/src/prog8/compiler/Compiler.kt
@@ -1,9 +1,6 @@
 package prog8.compiler
 
-import prog8.ast.AstToSourceCode
-import prog8.ast.IBuiltinFunctions
-import prog8.ast.IMemSizer
-import prog8.ast.Program
+import prog8.ast.*
 import prog8.ast.base.AstException
 import prog8.ast.base.Position
 import prog8.ast.expressions.Expression
@@ -268,6 +265,9 @@ private fun processAst(programAst: Program, errors: IErrorReporter, compilerOpti
     println("Processing for target ${compilerOptions.compTarget.name}...")
     programAst.checkIdentifiers(errors, compilerOptions)
     errors.report()
+    // TODO: turning char literals into UBYTEs via an encoding should really happen in code gen - but for that we'd need DataType.CHAR
+    programAst.charLiteralsToUByteLiterals(errors, compilerOptions.compTarget as IStringEncoding)
+    errors.report()
     programAst.constantFold(errors, compilerOptions.compTarget)
     errors.report()
     programAst.reorderStatements(errors)
diff --git a/compiler/src/prog8/compiler/astprocessing/AstExtensions.kt b/compiler/src/prog8/compiler/astprocessing/AstExtensions.kt
index 47579d965..b420be300 100644
--- a/compiler/src/prog8/compiler/astprocessing/AstExtensions.kt
+++ b/compiler/src/prog8/compiler/astprocessing/AstExtensions.kt
@@ -1,8 +1,15 @@
 package prog8.compiler.astprocessing
 
+import prog8.ast.IStringEncoding
+import prog8.ast.Node
 import prog8.ast.Program
+import prog8.ast.base.DataType
 import prog8.ast.base.FatalAstException
+import prog8.ast.expressions.CharLiteral
+import prog8.ast.expressions.NumericLiteralValue
 import prog8.ast.statements.Directive
+import prog8.ast.walk.AstWalker
+import prog8.ast.walk.IAstModification
 import prog8.compiler.BeforeAsmGenerationAstChanger
 import prog8.compiler.CompilationOptions
 import prog8.compiler.IErrorReporter
@@ -33,6 +40,20 @@ internal fun Program.reorderStatements(errors: IErrorReporter) {
     }
 }
 
+internal fun Program.charLiteralsToUByteLiterals(errors: IErrorReporter, enc: IStringEncoding) {
+    val walker = object : AstWalker() {
+        override fun after(char: CharLiteral, parent: Node): Iterable<IAstModification> {
+            return listOf(IAstModification.ReplaceNode(
+                char,
+                NumericLiteralValue(DataType.UBYTE, enc.encodeString(char.value.toString(), char.altEncoding)[0].toInt(), char.position),
+                parent
+            ))
+        }
+    }
+    walker.visit(this)
+    walker.applyModifications()
+}
+
 internal fun Program.addTypecasts(errors: IErrorReporter) {
     val caster = TypecastsAdder(this, errors)
     caster.visit(this)
diff --git a/compiler/test/TestCompilerOnCharLit.kt b/compiler/test/TestCompilerOnCharLit.kt
index 2c61ea191..9773aa000 100644
--- a/compiler/test/TestCompilerOnCharLit.kt
+++ b/compiler/test/TestCompilerOnCharLit.kt
@@ -40,7 +40,7 @@ class TestCompilerOnCharLit {
             "char literal should have been replaced by ubyte literal")
         val arg = funCall.args[0] as NumericLiteralValue
         assertEquals(DataType.UBYTE, arg.type)
-        assertEquals(platform.encodeString("\n", false)[0], arg.number)
+        assertEquals(platform.encodeString("\n", false)[0], arg.number.toShort()) // TODO: short/int/UBYTE - which should it be?
     }
 
     @Test
@@ -67,7 +67,7 @@ class TestCompilerOnCharLit {
             "char literal should have been replaced by ubyte literal")
         val initializerValue = decl.value as NumericLiteralValue
         assertEquals(DataType.UBYTE, initializerValue.type)
-        assertEquals(platform.encodeString("\n", false)[0], initializerValue.number)
+        assertEquals(platform.encodeString("\n", false)[0], initializerValue.number.toShort()) // TODO: short/int/UBYTE - which should it be?
     }
 
     @Test
@@ -87,12 +87,12 @@ class TestCompilerOnCharLit {
                 assertEquals(DataType.UBYTE, decl.datatype)
                 assertEquals(
                     platform.encodeString("\n", false)[0],
-                    (decl.value as NumericLiteralValue).number)
+                    (decl.value as NumericLiteralValue).number.toShort()) // TODO: short/int/UBYTE - which should it be?
             }
             is NumericLiteralValue -> {
                 assertEquals(
                     platform.encodeString("\n", false)[0],
-                    arg.number)
+                    arg.number.toShort()) // TODO: short/int/UBYTE - which should it be?
             }
             else -> assertIs<IdentifierReference>(funCall.args[0]) // make test fail
         }