diff --git a/toonz/sources/image/CMakeLists.txt b/toonz/sources/image/CMakeLists.txt
index f36123e..2bac510 100644
--- a/toonz/sources/image/CMakeLists.txt
+++ b/toonz/sources/image/CMakeLists.txt
@@ -85,7 +85,7 @@ if(WIN32)
     endif()
 endif()
 
-_find_toonz_library(TNZLIBS "tnzcore;tnzbase")
+_find_toonz_library(TNZLIBS "tnzcore;tnzbase;toonzlib")
 
 if(WIN32)
     set(EXTRA_LIBS
diff --git a/toonz/sources/image/psd/tiio_psd.cpp b/toonz/sources/image/psd/tiio_psd.cpp
index 1e48db3..3521f8a 100644
--- a/toonz/sources/image/psd/tiio_psd.cpp
+++ b/toonz/sources/image/psd/tiio_psd.cpp
@@ -1,8 +1,9 @@
-
-
 #include "tiio_psd.h"
 #include "trasterimage.h"
 #include "timageinfo.h"
+#include "toonz/preferences.h"
+
+#include <QtCore>
 
 // forward declaration
 //class TImageReaderLayerPsd;
@@ -39,8 +40,9 @@ TLevelReaderPsd::TLevelReaderPsd(const TFilePath &path)
 
 #ifdef REF_LAYER_BY_NAME
 		if (layerStr != "frames") {
+			QTextCodec* layerNameCodec = QTextCodec::codecForName( Preferences::instance()->getLayerNameEncoding().c_str() );
 			TPSDParser psdparser(m_path);
-			m_layerId = psdparser.getLevelIdByName(layerStr.toStdString());
+			m_layerId = psdparser.getLevelIdByName(layerNameCodec->fromUnicode(layerStr).toStdString());
 		} else
 			m_layerId = layerStr.toInt();
 #else
diff --git a/toonz/sources/include/toonz/preferences.h b/toonz/sources/include/toonz/preferences.h
index 7f02001..f1cbeba 100644
--- a/toonz/sources/include/toonz/preferences.h
+++ b/toonz/sources/include/toonz/preferences.h
@@ -428,6 +428,7 @@ public:
 	int getShmSeg() const { return m_shmseg; } //! \sa The \p sysctl unix command.
 	int getShmAll() const { return m_shmall; } //! \sa The \p sysctl unix command.
 	int getShmMni() const { return m_shmmni; } //! \sa The \p sysctl unix command.
+	std::string getLayerNameEncoding() const {return m_layerNameEncoding; };
 
 	Q_SIGNALS :
 
@@ -537,6 +538,7 @@ private:
 	int m_paletteTypeOnLoadRasterImageAsColorModel;
 
 	bool m_showKeyframesOnXsheetCellArea;
+	std::string m_layerNameEncoding = "SJIS"; // Fixed to SJIS for now. You can add interface if you wanna change encoding.
 
 private:
 	Preferences();
diff --git a/toonz/sources/toonzlib/txshsimplelevel.cpp b/toonz/sources/toonzlib/txshsimplelevel.cpp
index ef5bdda..3be22b3 100644
--- a/toonz/sources/toonzlib/txshsimplelevel.cpp
+++ b/toonz/sources/toonzlib/txshsimplelevel.cpp
@@ -1,5 +1,3 @@
-
-
 #include "toonz/txshsimplelevel.h"
 #include "imagebuilders.h"
 
@@ -40,6 +38,7 @@
 #include <QDir>
 #include <QRegExp>
 #include <QMessageBox>
+#include <QtCore>
 
 #include "../common/psdlib/psd.h"
 
@@ -1100,14 +1099,14 @@ TFilePath getLevelPathAndSetNameWithPsdLevelName(TXshSimpleLevel *xshLevel)
 	if (list.size() >= 2 && list.at(1) != "frames") {
 		bool hasLayerId;
 		int layid = list.at(1).toInt(&hasLayerId);
+		QTextCodec* layerNameCodec = QTextCodec::codecForName( Preferences::instance()->getLayerNameEncoding().c_str() );
 
 		if (hasLayerId) {
 			// An explicit photoshop layer id must be converted to the associated level name
 			TPSDParser psdparser(xshLevel->getScene()->decodeFilePath(retfp));
 			std::string levelName = psdparser.getLevelNameWithCounter(layid); // o_o  what about UNICODE names??
 
-			list[1] = QString::fromStdString(levelName);
-
+			list[1] = layerNameCodec->toUnicode(levelName.c_str());
 			std::wstring wLevelName = list.join("#").toStdWString();
 			retfp = retfp.withName(wLevelName);