diff --git a/src/Paragraph.cpp b/src/Paragraph.cpp
index ee39e6a518..fa8bb4140b 100644
--- a/src/Paragraph.cpp
+++ b/src/Paragraph.cpp
@@ -1957,8 +1957,9 @@ bool Paragraph::latex(Buffer const & buf,
 			open_font = false;
 		}
 
-		// Switch file encoding if necessary
-		if (runparams.encoding->package() == Encoding::inputenc &&
+		// Switch file encoding if necessary (and allowed)
+		if (!runparams.verbatim && 
+		    runparams.encoding->package() == Encoding::inputenc &&
 		    font.language()->encoding()->package() == Encoding::inputenc) {
 			std::pair<bool, int> const enc_switch = switchEncoding(os, bparams,
 					runparams.moving_arg, *(runparams.encoding),
diff --git a/src/output_latex.cpp b/src/output_latex.cpp
index bf04a243c3..92c1ca77d5 100644
--- a/src/output_latex.cpp
+++ b/src/output_latex.cpp
@@ -253,6 +253,18 @@ TeXOnePar(Buffer const & buf,
 	BufferParams const & bparams = buf.params();
 	LayoutPtr style;
 
+	if (runparams_in.verbatim) {
+		Font const outerfont =
+			outerFont(std::distance(paragraphs.begin(), pit),
+				  paragraphs);
+		// FIXME UNICODE
+		bool need_par = pit->latex(buf, bparams, outerfont,
+					     os, texrow, runparams_in);
+		os << '\n';
+		texrow.newline();
+		return ++pit;
+	}
+
 	// In an inset with unlimited length (all in one row),
 	// force layout to default
 	if (!pit->forceDefaultParagraphs())
@@ -558,7 +570,7 @@ TeXOnePar(Buffer const & buf,
 	if (closing_rtl_ltr_environment)
 		os << "}";
 
-	if (pending_newline && !runparams.verbatim) {
+	if (pending_newline) {
 		os << '\n';
 		texrow.newline();
 	}