diff --git a/src/town_cmd.cpp b/src/town_cmd.cpp
--- a/src/town_cmd.cpp
+++ b/src/town_cmd.cpp
@@ -1543,7 +1543,7 @@ CommandCost CmdFoundTown(TileIndex tile,
 		if (!VerifyTownName(townnameparts, &par)) return_cmd_error(STR_ERROR_NAME_MUST_BE_UNIQUE);
 	} else {
 		/* If name is not empty, it has to be unique custom name */
-		if (strlen(text) >= MAX_LENGTH_TOWN_NAME_BYTES) return CMD_ERROR;
+		if (Utf8StringLength(text) >= MAX_LENGTH_TOWN_NAME_CHARS) return CMD_ERROR;
 		if (!IsUniqueTownName(text)) return_cmd_error(STR_ERROR_NAME_MUST_BE_UNIQUE);
 	}
 
@@ -2295,7 +2295,7 @@ CommandCost CmdRenameTown(TileIndex tile
 	bool reset = StrEmpty(text);
 
 	if (!reset) {
-		if (strlen(text) >= MAX_LENGTH_TOWN_NAME_BYTES) return CMD_ERROR;
+		if (Utf8StringLength(text) >= MAX_LENGTH_TOWN_NAME_CHARS) return CMD_ERROR;
 		if (!IsUniqueTownName(text)) return_cmd_error(STR_ERROR_NAME_MUST_BE_UNIQUE);
 	}
 
diff --git a/src/town_gui.cpp b/src/town_gui.cpp
--- a/src/town_gui.cpp
+++ b/src/town_gui.cpp
@@ -451,7 +451,7 @@ public:
 
 			case TVW_CHANGENAME: // rename
 				SetDParam(0, this->window_number);
-				ShowQueryString(STR_TOWN_NAME, STR_TOWN_VIEW_RENAME_TOWN_BUTTON, MAX_LENGTH_TOWN_NAME_BYTES, MAX_LENGTH_TOWN_NAME_PIXELS, this, CS_ALPHANUMERAL, QSF_ENABLE_DEFAULT);
+				ShowQueryString(STR_TOWN_NAME, STR_TOWN_VIEW_RENAME_TOWN_BUTTON, MAX_LENGTH_TOWN_NAME_CHARS, MAX_LENGTH_TOWN_NAME_PIXELS, this, CS_ALPHANUMERAL, QSF_ENABLE_DEFAULT | QSF_LEN_IN_CHARS);
 				break;
 
 			case TVW_EXPAND: { // expand town - only available on Scenario editor
@@ -1007,13 +1007,13 @@ private:
 
 public:
 	FoundTownWindow(const WindowDesc *desc, WindowNumber window_number) :
-			QueryStringBaseWindow(MAX_LENGTH_TOWN_NAME_BYTES),
+			QueryStringBaseWindow(MAX_LENGTH_TOWN_NAME_CHARS * MAX_CHAR_LENGTH, MAX_LENGTH_TOWN_NAME_CHARS),
 			town_size(TSZ_MEDIUM),
 			town_layout(_settings_game.economy.town_layout),
 			params(_settings_game.game_creation.town_name)
 	{
 		this->InitNested(desc, window_number);
-		InitializeTextBuffer(&this->text, this->edit_str_buf, this->edit_str_size, MAX_LENGTH_TOWN_NAME_PIXELS);
+		InitializeTextBuffer(&this->text, this->edit_str_buf, this->edit_str_size, this->max_chars, MAX_LENGTH_TOWN_NAME_PIXELS);
 		this->RandomTownName();
 		this->UpdateButtons(true);
 	}
@@ -1063,7 +1063,7 @@ public:
 			name = this->edit_str_buf;
 		} else {
 			/* If user changed the name, send it */
-			char buf[MAX_LENGTH_TOWN_NAME_BYTES];
+			char buf[MAX_LENGTH_TOWN_NAME_CHARS * MAX_CHAR_LENGTH];
 			GetTownName(buf, &this->params, this->townnameparts, lastof(buf));
 			if (strcmp(buf, this->edit_str_buf) != 0) name = this->edit_str_buf;
 		}
diff --git a/src/town_type.h b/src/town_type.h
--- a/src/town_type.h
+++ b/src/town_type.h
@@ -105,7 +105,7 @@ enum TownFounding {
 /** It needs to be 8bits, because we save and load it as such */
 typedef SimpleTinyEnumT<TownFounding, byte> TownFoundingByte;
 
-static const uint MAX_LENGTH_TOWN_NAME_BYTES  =  31; ///< The maximum length of a town name in bytes including '\0'
+static const uint MAX_LENGTH_TOWN_NAME_CHARS  =  31; ///< The maximum length of a town name in characters including '\0'
 static const uint MAX_LENGTH_TOWN_NAME_PIXELS = 130; ///< The maximum length of a town name in pixels
 
 #endif /* TOWN_TYPE_H */
diff --git a/src/townname.cpp b/src/townname.cpp
--- a/src/townname.cpp
+++ b/src/townname.cpp
@@ -80,13 +80,13 @@ char *GetTownName(char *buff, const Town
 bool VerifyTownName(uint32 r, const TownNameParams *par)
 {
 	/* reserve space for extra unicode character and terminating '\0' */
-	char buf1[MAX_LENGTH_TOWN_NAME_BYTES + MAX_CHAR_LENGTH];
-	char buf2[MAX_LENGTH_TOWN_NAME_BYTES + MAX_CHAR_LENGTH];
+	char buf1[(MAX_LENGTH_TOWN_NAME_CHARS + 1) * MAX_CHAR_LENGTH];
+	char buf2[(MAX_LENGTH_TOWN_NAME_CHARS + 1) * MAX_CHAR_LENGTH];
 
 	GetTownName(buf1, par, r, lastof(buf1));
 
 	/* Check size and width */
-	if (strlen(buf1) >= MAX_LENGTH_TOWN_NAME_BYTES) return false;
+	if (Utf8StringLength(buf1) >= MAX_LENGTH_TOWN_NAME_CHARS) return false;
 
 	const Town *t;
 	FOR_ALL_TOWNS(t) {