diff --git a/vcsserver/scm_app.py b/vcsserver/scm_app.py
--- a/vcsserver/scm_app.py
+++ b/vcsserver/scm_app.py
@@ -27,7 +27,7 @@ import mercurial.hgweb.hgweb_mod
 import webob.exc
 
 from vcsserver import pygrack, exceptions, settings, git_lfs
-from vcsserver.utils import ascii_bytes
+from vcsserver.utils import ascii_bytes, safe_bytes
 
 log = logging.getLogger(__name__)
 
@@ -115,7 +115,10 @@ def make_hg_ui_from_config(repo_config):
     baseui._tcfg = mercurial.config.config()
 
     for section, option, value in repo_config:
-        baseui.setconfig(ascii_bytes(section), ascii_bytes(option), ascii_bytes(value))
+        baseui.setconfig(
+            ascii_bytes(section, allow_bytes=True),
+            ascii_bytes(option, allow_bytes=True),
+            ascii_bytes(value, allow_bytes=True))
 
     # make our hgweb quiet so it doesn't print output
     baseui.setconfig(b'ui', b'quiet', b'true')
@@ -131,11 +134,14 @@ def update_hg_ui_from_hgrc(baseui, repo_
         return
     log.debug('reading hgrc from %s', path)
     cfg = mercurial.config.config()
-    cfg.read(path)
+    cfg.read(ascii_bytes(path))
     for section in HG_UI_SECTIONS:
         for k, v in cfg.items(section):
             log.debug('settings ui from file: [%s] %s=%s', section, k, v)
-            baseui.setconfig(ascii_bytes(section), ascii_bytes(k), ascii_bytes(v))
+            baseui.setconfig(
+                ascii_bytes(section, allow_bytes=True),
+                ascii_bytes(k, allow_bytes=True),
+                ascii_bytes(v, allow_bytes=True))
 
 
 def create_hg_wsgi_app(repo_path, repo_name, config):
@@ -151,7 +157,7 @@ def create_hg_wsgi_app(repo_path, repo_n
     update_hg_ui_from_hgrc(baseui, repo_path)
 
     try:
-        return HgWeb(repo_path, name=repo_name, baseui=baseui)
+        return HgWeb(safe_bytes(repo_path), name=safe_bytes(repo_name), baseui=baseui)
     except mercurial.error.RequirementError as e:
         raise exceptions.RequirementException(e)(e)