diff --git a/.travis.yml b/.travis.yml
index 84ba3607..67b1259c 100644
--- a/.travis.yml
+++ b/.travis.yml
@@ -21,8 +21,10 @@ matrix:
     env: TOXENV=py35-django18
   - python: "3.6"
     env: TOXENV=py36-django18 DEPLOY=1
-  - python: "3.6"
-    env: TOXENV=py36-cov-travis
+  - python: "3.7"
+    env: TOXENV=py37-django18
+  - python: "3.7"
+    env: TOXENV=py37-cov-travis
 
 deploy:
   # Tagging a new kobo automatically releases to PyPI.
diff --git a/kobo/shortcuts.py b/kobo/shortcuts.py
index d1d13efc..8b331ddd 100644
--- a/kobo/shortcuts.py
+++ b/kobo/shortcuts.py
@@ -284,6 +284,14 @@ def run(cmd, show_cmd=False, stdout=False, logfile=None, can_fail=False, workdir
         cmd = " ".join((shlex_quote(i) for i in cmd))
 
     universal_newlines = kwargs.get('universal_newlines', False)
+    # new args added in py3 for Popen
+    text = kwargs.get('text', False)
+    encoding = kwargs.get('encoding', None)
+    errors = kwargs.get('errors', None)
+
+    # any of these args is passed, text mode will be enabled.
+    is_text_mode = any([universal_newlines, text, encoding, errors])
+    encoding = encoding or 'utf-8'
 
     log = None
     if logfile:
@@ -292,7 +300,7 @@ def run(cmd, show_cmd=False, stdout=False, logfile=None, can_fail=False, workdir
         # it will be overwritten. Otherwise the command output will just be
         # appended to the existing file.
         mode = 'a' if not show_cmd and os.path.exists(logfile) else 'w'
-        if not universal_newlines:
+        if not is_text_mode:
             mode += 'b'
         log = open(logfile, mode)
 
@@ -306,9 +314,9 @@ def run(cmd, show_cmd=False, stdout=False, logfile=None, can_fail=False, workdir
             if stdout:
                 print(command, end='')
             if logfile:
-                if six.PY3 and not universal_newlines:
+                if six.PY3 and not is_text_mode:
                     # Log file opened as binary, encode the command
-                    command = bytes(command, encoding='utf-8')
+                    command = bytes(command, encoding=encoding)
                 log.write(command)
 
         stdin = None
@@ -328,8 +336,8 @@ def run(self):
             stdin_thread.daemon = True
             stdin_thread.start()
 
-        output = "" if universal_newlines else b""
-        sentinel = "" if universal_newlines else b""
+        output = "" if is_text_mode else b""
+        sentinel = "" if is_text_mode else b""
         while True:
             if buffer_size == -1:
                 lines = proc.stdout.readline()
@@ -346,8 +354,8 @@ def run(self):
             if lines == sentinel:
                 break
             if stdout:
-                if not universal_newlines:
-                    sys.stdout.write(lines.decode('utf-8'))
+                if not is_text_mode:
+                    sys.stdout.write(lines.decode(encoding))
                 else:
                     sys.stdout.write(lines)
             if logfile:
diff --git a/tests/test_shortcuts.py b/tests/test_shortcuts.py
index e0df71bf..70e82b14 100755
--- a/tests/test_shortcuts.py
+++ b/tests/test_shortcuts.py
@@ -4,8 +4,10 @@
 
 import mock
 import unittest2 as unittest
+import pytest
 
 import os
+import sys
 import shutil
 import tempfile
 from six.moves import StringIO
@@ -176,6 +178,24 @@ def test_run(self):
         # passes in bash
         run("echo foo | tee >(md5sum -b) >/dev/null", executable="/bin/bash")
 
+    @pytest.mark.xfail(sys.version_info < (3, 7), reason="python3.7 api changes")
+    def test_run_in_text_mode(self):
+        """test run with kwargs 'text', 'encoding' or/and 'errors' set. These kwargs are
+        added to Popen from python3.6(encoding, errors) and python3.7(text). Running test
+        with python version older than 3.7 is expected to fail
+        """
+        ret, out = run("echo hello", text=True)
+        self.assertEqual(ret, 0)
+        self.assertEqual(out, "hello\n")
+
+        ret, out = run("echo hello", encoding="utf-8")
+        self.assertEqual(ret, 0)
+        self.assertEqual(out, "hello\n")
+
+        ret, out = run("echo hello", errors="strict")
+        self.assertEqual(ret, 0)
+        self.assertEqual(out, "hello\n")
+
     @mock.patch('sys.stdout', new_callable=StringIO)
     def test_run_univ_nl_show_cmd_logfile_stdout(self, mock_out):
         logfile = os.path.join(self.tmp_dir, 'output.log')
diff --git a/tox.ini b/tox.ini
index 30f519c5..0e710409 100644
--- a/tox.ini
+++ b/tox.ini
@@ -1,5 +1,5 @@
 [tox]
-envlist = {py27,py34,py35,py36}-django18
+envlist = {py27,py34,py35,py36,py37}-django18
 skip_missing_interpreters = True
 
 [testenv]
@@ -10,11 +10,12 @@ basepython =
     py34: python3.4
     py35: python3.5
     py36: python3.6
+    py37: python3.7
 deps =
     -rtest-requirements.txt
     django18: -cconstraints-django18.txt
 
-[testenv:py36-cov-travis]
+[testenv:py37-cov-travis]
 passenv = TRAVIS TRAVIS_*
 deps=
     -rtest-requirements.txt