This document provides an overview of character encodings and how they are handled in XML. It discusses the limitations of 7-bit and 8-bit character encodings and how Unicode addresses these by supporting a much wider range of characters with 16-bit encoding. It also describes how characters maps to numeric codes in Unicode/ISO 10646 and how UTF encodings implement Unicode. Additional topics covered include common character sets, using Unicode characters, and resources for finding character entity information.