diff --git a/package.json b/package.json
index 2934606..f5a176c 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
 	"name": "@loop-payments/quickjs",
-	"version": "3.2.0",
+	"version": "3.2.1",
 	"description": "A typescript package to execute JavaScript and TypeScript code in a WebAssembly QuickJS sandbox",
 	"engines": {
 		"node": ">=18.0.0"
diff --git a/src/modules/util.js b/src/modules/util.js
index 7e9261e..dc3b563 100644
--- a/src/modules/util.js
+++ b/src/modules/util.js
@@ -13,6 +13,32 @@ class TextEncoder {
     }
 }
 
+// The engine limits the number of arguments for one function call. The
+// decoder sends the bytes in chunks of this size to stay under the limit.
+const DECODE_CHUNK_SIZE = 8192;
+
+// The WHATWG encoding standard defines the decoder input as a BufferSource. A
+// BufferSource is an ArrayBuffer or a view on an ArrayBuffer. The decoder
+// reads the bytes through a Uint8Array. An ArrayBuffer has no index access,
+// and a signed view returns negative numbers.
+function toUint8Array(input) {
+    if (input === undefined) {
+        return new Uint8Array();
+    }
+    if (input instanceof Uint8Array) {
+        return input;
+    }
+    if (ArrayBuffer.isView(input)) {
+        // The new array must keep the offset and the length of the input
+        // view. An array over the full buffer decodes the wrong bytes.
+        return new Uint8Array(input.buffer, input.byteOffset, input.byteLength);
+    }
+    if (input instanceof ArrayBuffer) {
+        return new Uint8Array(input);
+    }
+    throw new TypeError('TextDecoder.decode accepts an ArrayBuffer or a view on an ArrayBuffer');
+}
+
 class TextDecoder {
     constructor(encoding = 'utf-8') {
         if (encoding !== 'utf-8') {
@@ -20,12 +46,16 @@ class TextDecoder {
         }
     }
 
-    decode(input = new Uint8Array()) {
-        let str = '';
-        for (let i = 0; i < input.length; i++) {
-          str += String.fromCharCode(input[i]);
+    decode(input) {
+        const bytes = toUint8Array(input);
+        // One call to String.fromCharCode per chunk is much faster than one
+        // call per byte. A chunk that splits a multibyte sequence is safe,
+        // because decodeURIComponent reads the full string.
+        let latin1 = '';
+        for (let i = 0; i < bytes.length; i += DECODE_CHUNK_SIZE) {
+          latin1 += String.fromCharCode.apply(null, bytes.subarray(i, i + DECODE_CHUNK_SIZE));
         }
-        return decodeURIComponent(escape(str));
+        return decodeURIComponent(escape(latin1));
     }
 }
 
diff --git a/src/test/async/util.test.ts b/src/test/async/util.test.ts
index a3e6fe6..526a94f 100644
--- a/src/test/async/util.test.ts
+++ b/src/test/async/util.test.ts
@@ -92,4 +92,95 @@ describe('async - node:util - base', () => {
 		expect(result.ok).toBeTrue()
 		expect((result as OkResponse).data).toBe('Test passed')
 	})
+
+	describe('TextDecoder', () => {
+		const decode = async (setup: string, argument: string) => {
+			const result = await runtime.runSandboxed(async ({ evalCode }) => {
+				return await evalCode(`
+					${setup}
+					export default new TextDecoder().decode(${argument})
+				`)
+			})
+			expect(result.ok).toBeTrue()
+			return (result as OkResponse).data
+		}
+
+		const decodeError = async (argument: string) => {
+			const result = await runtime.runSandboxed(async ({ evalCode }) => {
+				return await evalCode(`
+					let outcome = 'the decode call did not throw'
+					try {
+						new TextDecoder().decode(${argument})
+					} catch (error) {
+						outcome = error.constructor.name + ': ' + error.message
+					}
+					export default outcome
+				`)
+			})
+			expect(result.ok).toBeTrue()
+			return (result as OkResponse).data
+		}
+
+		const helloWorld = "const bytes = new TextEncoder().encode('hello world')"
+
+		it('decodes an ArrayBuffer', async () => {
+			expect(await decode(helloWorld, 'bytes.buffer')).toBe('hello world')
+		})
+
+		it('decodes a DataView', async () => {
+			expect(await decode(helloWorld, 'new DataView(bytes.buffer)')).toBe('hello world')
+		})
+
+		it('decodes a Uint8Array', async () => {
+			expect(await decode(helloWorld, 'bytes')).toBe('hello world')
+		})
+
+		it('decodes a view that starts at a byte offset', async () => {
+			expect(await decode(helloWorld, 'new Uint8Array(bytes.buffer, 6)')).toBe('world')
+		})
+
+		it('decodes a view that has a shorter byte length', async () => {
+			expect(await decode(helloWorld, 'new Uint8Array(bytes.buffer, 0, 5)')).toBe('hello')
+		})
+
+		it('decodes a view that has signed elements', async () => {
+			const setup = "const bytes = new TextEncoder().encode('héllo')"
+			expect(await decode(setup, 'new Int8Array(bytes.buffer)')).toBe('héllo')
+		})
+
+		it('decodes multibyte characters from an ArrayBuffer', async () => {
+			const setup = "const bytes = new TextEncoder().encode('héllo 🌍')"
+			expect(await decode(setup, 'bytes.buffer')).toBe('héllo 🌍')
+		})
+
+		it('returns an empty string for no argument', async () => {
+			expect(await decode('', '')).toBe('')
+		})
+
+		it('returns an empty string for an empty ArrayBuffer', async () => {
+			expect(await decode('', 'new ArrayBuffer(0)')).toBe('')
+		})
+
+		it('decodes a payload that is larger than one internal chunk', async () => {
+			const result = await runtime.runSandboxed(async ({ evalCode }) => {
+				return await evalCode(`
+					let source = ''
+					while (source.length < 100000) source += 'héllo 🌍 world '
+					const bytes = new TextEncoder().encode(source)
+					const decoded = new TextDecoder().decode(bytes.buffer)
+					export default decoded === source ? 'match' : 'mismatch at length ' + decoded.length
+				`)
+			})
+			expect(result.ok).toBeTrue()
+			expect((result as OkResponse).data).toBe('match')
+		})
+
+		it('throws a TypeError for a string', async () => {
+			expect(await decodeError("'hello world'")).toStartWith('TypeError')
+		})
+
+		it('throws a TypeError for null', async () => {
+			expect(await decodeError('null')).toStartWith('TypeError')
+		})
+	})
 })
diff --git a/src/test/sync/util.test.ts b/src/test/sync/util.test.ts
index 8695711..829ed00 100644
--- a/src/test/sync/util.test.ts
+++ b/src/test/sync/util.test.ts
@@ -92,4 +92,95 @@ describe('sync - node:util - base', () => {
 		expect(result.ok).toBeTrue()
 		expect((result as OkResponse).data).toBe('Test passed')
 	})
+
+	describe('TextDecoder', () => {
+		const decode = async (setup: string, argument: string) => {
+			const result = await runtime.runSandboxed(async ({ evalCode }) => {
+				return await evalCode(`
+					${setup}
+					export default new TextDecoder().decode(${argument})
+				`)
+			})
+			expect(result.ok).toBeTrue()
+			return (result as OkResponse).data
+		}
+
+		const decodeError = async (argument: string) => {
+			const result = await runtime.runSandboxed(async ({ evalCode }) => {
+				return await evalCode(`
+					let outcome = 'the decode call did not throw'
+					try {
+						new TextDecoder().decode(${argument})
+					} catch (error) {
+						outcome = error.constructor.name + ': ' + error.message
+					}
+					export default outcome
+				`)
+			})
+			expect(result.ok).toBeTrue()
+			return (result as OkResponse).data
+		}
+
+		const helloWorld = "const bytes = new TextEncoder().encode('hello world')"
+
+		it('decodes an ArrayBuffer', async () => {
+			expect(await decode(helloWorld, 'bytes.buffer')).toBe('hello world')
+		})
+
+		it('decodes a DataView', async () => {
+			expect(await decode(helloWorld, 'new DataView(bytes.buffer)')).toBe('hello world')
+		})
+
+		it('decodes a Uint8Array', async () => {
+			expect(await decode(helloWorld, 'bytes')).toBe('hello world')
+		})
+
+		it('decodes a view that starts at a byte offset', async () => {
+			expect(await decode(helloWorld, 'new Uint8Array(bytes.buffer, 6)')).toBe('world')
+		})
+
+		it('decodes a view that has a shorter byte length', async () => {
+			expect(await decode(helloWorld, 'new Uint8Array(bytes.buffer, 0, 5)')).toBe('hello')
+		})
+
+		it('decodes a view that has signed elements', async () => {
+			const setup = "const bytes = new TextEncoder().encode('héllo')"
+			expect(await decode(setup, 'new Int8Array(bytes.buffer)')).toBe('héllo')
+		})
+
+		it('decodes multibyte characters from an ArrayBuffer', async () => {
+			const setup = "const bytes = new TextEncoder().encode('héllo 🌍')"
+			expect(await decode(setup, 'bytes.buffer')).toBe('héllo 🌍')
+		})
+
+		it('returns an empty string for no argument', async () => {
+			expect(await decode('', '')).toBe('')
+		})
+
+		it('returns an empty string for an empty ArrayBuffer', async () => {
+			expect(await decode('', 'new ArrayBuffer(0)')).toBe('')
+		})
+
+		it('decodes a payload that is larger than one internal chunk', async () => {
+			const result = await runtime.runSandboxed(async ({ evalCode }) => {
+				return await evalCode(`
+					let source = ''
+					while (source.length < 100000) source += 'héllo 🌍 world '
+					const bytes = new TextEncoder().encode(source)
+					const decoded = new TextDecoder().decode(bytes.buffer)
+					export default decoded === source ? 'match' : 'mismatch at length ' + decoded.length
+				`)
+			})
+			expect(result.ok).toBeTrue()
+			expect((result as OkResponse).data).toBe('match')
+		})
+
+		it('throws a TypeError for a string', async () => {
+			expect(await decodeError("'hello world'")).toStartWith('TypeError')
+		})
+
+		it('throws a TypeError for null', async () => {
+			expect(await decodeError('null')).toStartWith('TypeError')
+		})
+	})
 })