diff --git a/sandpack-client/src/clients/runtime/index.ts b/sandpack-client/src/clients/runtime/index.ts
index 44365ad7e..d6eccbf2d 100644
--- a/sandpack-client/src/clients/runtime/index.ts
+++ b/sandpack-client/src/clients/runtime/index.ts
@@ -19,6 +19,7 @@ import {
   extractErrorDetails,
   createPackageJSON,
   addPackageJSONIfNeeded,
+  codeToString,
 } from "../../utils";
 import { SandpackClient } from "../base";
 
@@ -199,7 +200,7 @@ export class SandpackRuntime extends SandpackClient {
       )
     );
     try {
-      packageJSON = JSON.parse(files["/package.json"].code);
+      packageJSON = JSON.parse(codeToString(files["/package.json"].code));
     } catch (e) {
       console.error(
         createError(
diff --git a/sandpack-client/src/types.ts b/sandpack-client/src/types.ts
index 757cd77f3..bca548e5d 100644
--- a/sandpack-client/src/types.ts
+++ b/sandpack-client/src/types.ts
@@ -80,7 +80,7 @@ export interface SandboxSetup {
 }
 
 export interface SandpackBundlerFile {
-  code: string;
+  code: string | Uint8Array;
   hidden?: boolean;
   active?: boolean;
   readOnly?: boolean;
diff --git a/sandpack-client/src/utils.test.ts b/sandpack-client/src/utils.test.ts
index 1429a7c23..d76fa79b1 100644
--- a/sandpack-client/src/utils.test.ts
+++ b/sandpack-client/src/utils.test.ts
@@ -1,4 +1,4 @@
-import { addPackageJSONIfNeeded, normalizePath } from "./utils";
+import { addPackageJSONIfNeeded, codeToString, normalizePath } from "./utils";
 
 const files = {
   "/package.json": {
@@ -15,7 +15,9 @@ describe(addPackageJSONIfNeeded, () => {
   test("it merges the package.json - dependencies", () => {
     const output = addPackageJSONIfNeeded(files, { foo: "*" });
 
-    expect(JSON.parse(output["/package.json"].code).dependencies).toEqual({
+    expect(
+      JSON.parse(codeToString(output["/package.json"].code)).dependencies
+    ).toEqual({
       baz: "*",
       foo: "*",
     });
@@ -24,7 +26,9 @@ describe(addPackageJSONIfNeeded, () => {
   test("it merges the package.json - dev-dependencies", () => {
     const output = addPackageJSONIfNeeded(files, undefined, { foo: "*" });
 
-    expect(JSON.parse(output["/package.json"].code).devDependencies).toEqual({
+    expect(
+      JSON.parse(codeToString(output["/package.json"].code)).devDependencies
+    ).toEqual({
       baz: "*",
       foo: "*",
     });
@@ -38,7 +42,7 @@ describe(addPackageJSONIfNeeded, () => {
       "new-entry.js"
     );
 
-    expect(JSON.parse(output["/package.json"].code).main).toEqual(
+    expect(JSON.parse(codeToString(output["/package.json"].code)).main).toEqual(
       "new-entry.js"
     );
   });
@@ -59,7 +63,7 @@ describe(addPackageJSONIfNeeded, () => {
       "new-entry.js"
     );
 
-    expect(JSON.parse(output["/package.json"].code).main).toEqual(
+    expect(JSON.parse(codeToString(output["/package.json"].code)).main).toEqual(
       "new-entry.js"
     );
   });
@@ -91,7 +95,7 @@ describe(addPackageJSONIfNeeded, () => {
       "new-entry.ts"
     );
 
-    expect(JSON.parse(output["/package.json"].code)).toEqual({
+    expect(JSON.parse(codeToString(output["/package.json"].code))).toEqual({
       main: "new-entry.ts",
       dependencies: { baz: "*", foo: "*" },
       devDependencies: { baz: "*", foo: "*" },
diff --git a/sandpack-client/src/utils.ts b/sandpack-client/src/utils.ts
index 5cb865d87..972283672 100644
--- a/sandpack-client/src/utils.ts
+++ b/sandpack-client/src/utils.ts
@@ -17,6 +17,15 @@ export function nullthrows<T>(value?: T | null, err = "Value is nullish"): T {
   return value;
 }
 
+export function codeToString(code: string | Uint8Array): string {
+  if (typeof code === "string") {
+    return code;
+  } else {
+    const decoder = new TextDecoder();
+    return decoder.decode(code);
+  }
+}
+
 const DEPENDENCY_ERROR_MESSAGE = `"dependencies" was not specified - provide either a package.json or a "dependencies" value`;
 const ENTRY_ERROR_MESSAGE = `"entry" was not specified - provide either a package.json with the "main" field or an "entry" value`;
 
@@ -65,7 +74,7 @@ export function addPackageJSONIfNeeded(
    * Merge package json with custom setup
    */
   if (packageJsonFile) {
-    const packageJsonContent = JSON.parse(packageJsonFile.code);
+    const packageJsonContent = JSON.parse(codeToString(packageJsonFile.code));
 
     nullthrows(
       !(!dependencies && !packageJsonContent.dependencies),
diff --git a/sandpack-react/src/components/common/OpenInCodeSandboxButton/UnstyledOpenInCodeSandboxButton.tsx b/sandpack-react/src/components/common/OpenInCodeSandboxButton/UnstyledOpenInCodeSandboxButton.tsx
index 62c2a50d0..371a8c70a 100644
--- a/sandpack-react/src/components/common/OpenInCodeSandboxButton/UnstyledOpenInCodeSandboxButton.tsx
+++ b/sandpack-react/src/components/common/OpenInCodeSandboxButton/UnstyledOpenInCodeSandboxButton.tsx
@@ -5,6 +5,7 @@ import * as React from "react";
 
 import { useSandpack } from "../../../hooks/useSandpack";
 import type { SandboxEnvironment } from "../../../types";
+import { codeToString } from "../../../utils/stringUtils";
 
 // eslint-disable-next-line @typescript-eslint/no-explicit-any
 const getParameters = (parameters: Record<string, any>): string =>
@@ -28,10 +29,11 @@ const getFileParameters = (
   >;
 
   const normalizedFiles = Object.keys(files).reduce((prev, next) => {
+    const code = files[next].code;
     const fileName = next.replace("/", "");
     const value = {
-      content: files[next].code,
-      isBinary: false,
+      content: codeToString(code),
+      isBinary: code instanceof Uint8Array,
     };
 
     return { ...prev, [fileName]: value };
diff --git a/sandpack-react/src/hooks/useActiveCode.ts b/sandpack-react/src/hooks/useActiveCode.ts
index 2afdb291a..36ae032d6 100644
--- a/sandpack-react/src/hooks/useActiveCode.ts
+++ b/sandpack-react/src/hooks/useActiveCode.ts
@@ -1,3 +1,5 @@
+import { codeToString } from "../utils/stringUtils";
+
 import { useSandpack } from "./useSandpack";
 
 /**
@@ -14,7 +16,7 @@ export const useActiveCode = (): {
   const { sandpack } = useSandpack();
 
   return {
-    code: sandpack.files[sandpack.activeFile]?.code,
+    code: codeToString(sandpack.files[sandpack.activeFile]?.code),
     readOnly: sandpack.files[sandpack.activeFile]?.readOnly ?? false,
     updateCode: sandpack.updateCurrentFile,
   };
diff --git a/sandpack-react/src/types.ts b/sandpack-react/src/types.ts
index ee734d268..cb686b283 100644
--- a/sandpack-react/src/types.ts
+++ b/sandpack-react/src/types.ts
@@ -236,7 +236,7 @@ export type SandpackPredefinedTemplate = keyof typeof SANDBOX_TEMPLATES;
  * @category Setup
  */
 export interface SandpackFile {
-  code: string;
+  code: string | Uint8Array;
   hidden?: boolean;
   active?: boolean;
   readOnly?: boolean;
@@ -591,7 +591,7 @@ export interface SandboxTemplate {
   environment: SandboxEnvironment;
 }
 
-export type SandpackFiles = Record<string, string | SandpackFile>;
+export type SandpackFiles = Record<string, string | Uint8Array | SandpackFile>;
 
 /**
  * Custom properties to be used in the SandpackCodeEditor component,
diff --git a/sandpack-react/src/utils/sandpackUtils.ts b/sandpack-react/src/utils/sandpackUtils.ts
index 0f39fdf1b..1229f0e18 100644
--- a/sandpack-react/src/utils/sandpackUtils.ts
+++ b/sandpack-react/src/utils/sandpackUtils.ts
@@ -53,7 +53,7 @@ export const getSandpackStateFromProps = (
     // extract open and active files from the custom input files
     Object.keys(normalizedFilesPath).forEach((filePath) => {
       const file = normalizedFilesPath[filePath];
-      if (typeof file === "string") {
+      if (typeof file === "string" || file instanceof Uint8Array) {
         visibleFiles.push(filePath);
         return;
       }
diff --git a/sandpack-react/src/utils/stringUtils.ts b/sandpack-react/src/utils/stringUtils.ts
index 285b7c5ef..b8807a2cc 100644
--- a/sandpack-react/src/utils/stringUtils.ts
+++ b/sandpack-react/src/utils/stringUtils.ts
@@ -53,6 +53,15 @@ export const calculateNearestUniquePath = (
   return resultPathParts.join("/");
 };
 
+export function codeToString(code: string | Uint8Array): string {
+  if (typeof code === "string") {
+    return code;
+  } else {
+    const decoder = new TextDecoder();
+    return decoder.decode(code);
+  }
+}
+
 export const hexToRGB = (
   hex: string
 ): { red: number; green: number; blue: number } => {