diff --git a/app/models/epp/domain.rb b/app/models/epp/domain.rb
index 4e3d20305..bd9a1d4a3 100644
--- a/app/models/epp/domain.rb
+++ b/app/models/epp/domain.rb
@@ -802,7 +802,7 @@ class Epp::Domain < Domain
           next
         end
 
-        domain_name = DNS::DomainName.new(domain_name_as_string)
+        domain_name = DNS::DomainName.new(SimpleIDN.to_unicode(domain_name_as_string))
 
         if domain_name.unavailable?
           reason = I18n.t("errors.messages.epp_domain_#{domain_name.unavailability_reason}")
diff --git a/test/integration/epp/domain/check/auction_test.rb b/test/integration/epp/domain/check/auction_test.rb
index efc048f85..6a2722dc5 100644
--- a/test/integration/epp/domain/check/auction_test.rb
+++ b/test/integration/epp/domain/check/auction_test.rb
@@ -1,8 +1,10 @@
+# encoding: UTF-8
 require 'test_helper'
 
 class EppDomainCheckAuctionTest < ApplicationIntegrationTest
   setup do
     @auction = auctions(:one)
+    @idn_auction = auctions(:idn)
     Domain.release_to_auction = true
   end
 
@@ -35,6 +37,56 @@ class EppDomainCheckAuctionTest < ApplicationIntegrationTest
     assert_equal 'Domain is at auction', response_xml.at_xpath('//domain:reason', 'domain' => 'https://epp.tld.ee/schema/domain-eis-1.0.xsd').text
   end
 
+  def test_idn_ascii_domain_is_unavailable_when_at_auction
+    @idn_auction.update!(status: Auction.statuses[:started])
+
+    request_xml = <<-XML
+      <?xml version="1.0" encoding="UTF-8" standalone="no"?>
+      <epp xmlns="https://epp.tld.ee/schema/epp-ee-1.0.xsd">
+        <command>
+          <check>
+            <domain:check xmlns:domain="https://epp.tld.ee/schema/domain-eis-1.0.xsd">
+              <domain:name>xn--pramiid-n2a.test</domain:name>
+            </domain:check>
+          </check>
+        </command>
+      </epp>
+    XML
+
+    post '/epp/command/check', { frame: request_xml }, 'HTTP_COOKIE' => 'session=api_bestnames'
+
+    response_xml = Nokogiri::XML(response.body)
+    assert_equal '1000', response_xml.at_css('result')[:code]
+    assert_equal 1, response_xml.css('result').size
+    assert_equal '0', response_xml.at_xpath('//domain:name', 'domain' => 'https://epp.tld.ee/schema/domain-eis-1.0.xsd')['avail']
+    assert_equal 'Domain is at auction', response_xml.at_xpath('//domain:reason', 'domain' => 'https://epp.tld.ee/schema/domain-eis-1.0.xsd').text
+  end
+
+  def test_idn_unicode_domain_is_unavailable_when_at_auction
+    @idn_auction.update!(status: Auction.statuses[:started])
+
+    request_xml = <<-XML
+      <?xml version="1.0" encoding="UTF-8" standalone="no"?>
+      <epp xmlns="https://epp.tld.ee/schema/epp-ee-1.0.xsd">
+        <command>
+          <check>
+            <domain:check xmlns:domain="https://epp.tld.ee/schema/domain-eis-1.0.xsd">
+              <domain:name>püramiid.test</domain:name>
+            </domain:check>
+          </check>
+        </command>
+      </epp>
+    XML
+
+    post '/epp/command/check', { frame: request_xml }, 'HTTP_COOKIE' => 'session=api_bestnames'
+
+    response_xml = Nokogiri::XML(response.body)
+    assert_equal '1000', response_xml.at_css('result')[:code]
+    assert_equal 1, response_xml.css('result').size
+    assert_equal '0', response_xml.at_xpath('//domain:name', 'domain' => 'https://epp.tld.ee/schema/domain-eis-1.0.xsd')['avail']
+    assert_equal 'Domain is at auction', response_xml.at_xpath('//domain:reason', 'domain' => 'https://epp.tld.ee/schema/domain-eis-1.0.xsd').text
+  end
+
   def test_domain_is_unavailable_when_awaiting_payment
     @auction.update!(status: Auction.statuses[:awaiting_payment])