diff --git a/changelog/@unreleased/pr-1932.v2.yml b/changelog/@unreleased/pr-1932.v2.yml
new file mode 100644
index 000000000..7990b1f5c
--- /dev/null
+++ b/changelog/@unreleased/pr-1932.v2.yml
@@ -0,0 +1,6 @@
+type: fix
+fix:
+  description: Fix `MalformedInputException` when checking non-utf8 files for correct
+    junit dependencies.
+  links:
+  - https://github.com/palantir/gradle-baseline/pull/1932
diff --git a/gradle-baseline-java/src/main/groovy/com/palantir/baseline/tasks/CheckJUnitDependencies.java b/gradle-baseline-java/src/main/groovy/com/palantir/baseline/tasks/CheckJUnitDependencies.java
index 7263541be..9e7018061 100644
--- a/gradle-baseline-java/src/main/groovy/com/palantir/baseline/tasks/CheckJUnitDependencies.java
+++ b/gradle-baseline-java/src/main/groovy/com/palantir/baseline/tasks/CheckJUnitDependencies.java
@@ -22,7 +22,6 @@
 import com.palantir.baseline.plugins.BaselineTesting;
 import com.palantir.baseline.util.VersionUtils;
 import java.io.File;
-import java.io.IOException;
 import java.nio.file.Files;
 import java.util.List;
 import java.util.Optional;
@@ -164,7 +163,8 @@ private boolean hasDep(Set<ResolvedComponentResult> deps, Predicate<ModuleVersio
     }
 
     private boolean sourceSetMentionsJUnit4(SourceSet ss) {
-        return !ss.getAllSource()
+        // getAllJava() includes groovy sources too
+        return !ss.getAllJava()
                 .filter(file -> fileContainsSubstring(
                         file,
                         l -> l.contains("org.junit.Test")
@@ -174,18 +174,16 @@ private boolean sourceSetMentionsJUnit4(SourceSet ss) {
     }
 
     private boolean sourceSetMentionsJUnit5Api(SourceSet ss) {
-        return !ss.getAllSource()
+        return !ss.getAllJava()
                 .filter(file -> fileContainsSubstring(file, l -> l.contains("org.junit.jupiter.api.")))
                 .isEmpty();
     }
 
     private boolean fileContainsSubstring(File file, Predicate<String> substring) {
         try (Stream<String> lines = Files.lines(file.toPath())) {
-            boolean hit = lines.anyMatch(substring::test);
-            getProject().getLogger().debug("[{}] {}", hit ? "hit" : "miss", file);
-            return hit;
-        } catch (IOException e) {
-            throw new RuntimeException("Unable to check file " + file, e);
+            return lines.anyMatch(substring);
+        } catch (Exception e) {
+            throw new RuntimeException("Unable to check file for junit dependencies: " + file, e);
         }
     }
 
diff --git a/gradle-baseline-java/src/test/groovy/com/palantir/baseline/BaselineTestingIntegrationTest.groovy b/gradle-baseline-java/src/test/groovy/com/palantir/baseline/BaselineTestingIntegrationTest.groovy
index 99dd2f896..f3312ed40 100644
--- a/gradle-baseline-java/src/test/groovy/com/palantir/baseline/BaselineTestingIntegrationTest.groovy
+++ b/gradle-baseline-java/src/test/groovy/com/palantir/baseline/BaselineTestingIntegrationTest.groovy
@@ -16,6 +16,7 @@
 
 package com.palantir.baseline
 
+
 import nebula.test.IntegrationSpec
 import nebula.test.functional.ExecutionResult
 import spock.lang.Unroll
@@ -209,4 +210,16 @@ class BaselineTestingIntegrationTest extends IntegrationSpec {
         def result4 = runTasksSuccessfully('test', '-Drecreate=true')
         result4.wasExecuted(':test')
     }
+
+    def 'does not crash with non-utf8 resources'() {
+        when:
+        buildFile << standardBuildFile
+        file('src/test/resources/some-binary').newOutputStream().withCloseable {
+            // Invalid unicode sequence identifier
+            it.write([0xA0, 0xA1] as byte[])
+        }
+
+        then:
+        runTasksSuccessfully('checkJUnitDependencies')
+    }
 }