diff --git a/icu4j/src/com/ibm/icu/dev/test/util/TestAll.java b/icu4j/src/com/ibm/icu/dev/test/util/TestAll.java
index 4c0d6c30bb5..f66f2260297 100644
--- a/icu4j/src/com/ibm/icu/dev/test/util/TestAll.java
+++ b/icu4j/src/com/ibm/icu/dev/test/util/TestAll.java
@@ -5,8 +5,8 @@
  *******************************************************************************
  *
  * $Source: /xsrl/Nsvn/icu/icu4j/src/com/ibm/icu/dev/test/util/TestAll.java,v $
- * $Date: 2003/02/05 05:50:05 $
- * $Revision: 1.1 $
+ * $Date: 2003/05/09 03:31:49 $
+ * $Revision: 1.2 $
  *
  *******************************************************************************
  */
@@ -30,6 +30,7 @@ public class TestAll extends TestGroup {
             "CompactArrayTest",
             "StringTokenizerTest",
             "CurrencyTest",
+            "UtilityTest"
         },
               "Test miscellaneous public utilities");
     }
diff --git a/icu4j/src/com/ibm/icu/dev/test/util/UtilityTest.java b/icu4j/src/com/ibm/icu/dev/test/util/UtilityTest.java
new file mode 100644
index 00000000000..1dea55ad417
--- /dev/null
+++ b/icu4j/src/com/ibm/icu/dev/test/util/UtilityTest.java
@@ -0,0 +1,37 @@
+/*
+**********************************************************************
+* Copyright (c) 2003, International Business Machines
+* Corporation and others.  All Rights Reserved.
+**********************************************************************
+* Author: Alan Liu
+* Created: March 8 2003
+* Since: ICU 2.6
+**********************************************************************
+*/
+package com.ibm.icu.dev.test.util;
+import com.ibm.icu.dev.test.TestFmwk;
+import com.ibm.icu.impl.Utility;
+
+/**
+ * @test
+ * @summary Test of internal Utility class
+ */
+public class UtilityTest extends TestFmwk {
+
+    public static void main(String[] args) throws Exception {
+        new UtilityTest().run(args);
+    }
+
+    public void TestUnescape() {
+        final String input =
+            "Sch\\u00f6nes Auto: \\u20ac 11240.\\fPrivates Zeichen: \\U00102345\\e\\cC\\n \\x1b\\x{263a}";
+
+        final String expect = 
+            "Sch\u00F6nes Auto: \u20AC 11240.\u000CPrivates Zeichen: \uDBC8\uDF45\u001B\u0003\012 \u001B\u263A";
+
+        String result = Utility.unescape(input);
+        if (!result.equals(expect)) {
+            errln("FAIL: Utility.unescape() returned " + result + ", exp. " + expect);
+        }
+    }
+}
diff --git a/icu4j/src/com/ibm/icu/impl/Utility.java b/icu4j/src/com/ibm/icu/impl/Utility.java
index 3d9b4b02c00..6c7d01c88db 100755
--- a/icu4j/src/com/ibm/icu/impl/Utility.java
+++ b/icu4j/src/com/ibm/icu/impl/Utility.java
@@ -5,8 +5,8 @@
  *******************************************************************************
  *
  * $Source: /xsrl/Nsvn/icu/icu4j/src/com/ibm/icu/impl/Utility.java,v $
- * $Date: 2003/02/11 00:49:09 $
- * $Revision: 1.37 $
+ * $Date: 2003/05/09 03:31:49 $
+ * $Revision: 1.38 $
  *
  *****************************************************************************************
  */
@@ -719,6 +719,7 @@ public final class Utility {
         int bitsPerDigit = 4;
         int dig;
         int i;
+        boolean braces = false;
 
         /* Check that offset is in range */
         int offset = offset16[0];
@@ -741,7 +742,13 @@ public final class Utility {
             break;
         case 'x':
             minDig = 1;
-            maxDig = 2;
+            if (offset < length && UTF16.charAt(s, offset) == 0x7B /*{*/) {
+                ++offset;
+                braces = true;
+                maxDig = 8;
+            } else {
+                maxDig = 2;
+            }
             break;
         default:
             dig = UCharacter.digit(c, 8);
@@ -756,25 +763,24 @@ public final class Utility {
         }
         if (minDig != 0) {
             while (offset < length && n < maxDig) {
-                // TEMPORARY
-                // TODO: Restore the char32-based code when UCharacter.digit
-                // is working (Bug 66).
-
-                //c = UTF16.charAt(s, offset);
-                //dig = UCharacter.digit(c, (bitsPerDigit == 3) ? 8 : 16);
-                c = s.charAt(offset);
-                dig = Character.digit((char)c, (bitsPerDigit == 3) ? 8 : 16);
+                c = UTF16.charAt(s, offset);
+                dig = UCharacter.digit(c, (bitsPerDigit == 3) ? 8 : 16);
                 if (dig < 0) {
                     break;
                 }
                 result = (result << bitsPerDigit) | dig;
-                //offset += UTF16.getCharCount(c);
-                ++offset;
+                offset += UTF16.getCharCount(c);
                 ++n;
             }
             if (n < minDig) {
                 return -1;
             }
+            if (braces) {
+                if (c != 0x7D /*}*/) {
+                    return -1;
+                }
+                ++offset;
+            }
             offset16[0] = offset;
             return result;
         }