diff --git a/pandas-stubs/io/sas/sasreader.pyi b/pandas-stubs/io/sas/sasreader.pyi
index d988b1b9..10a4ae87 100644
--- a/pandas-stubs/io/sas/sasreader.pyi
+++ b/pandas-stubs/io/sas/sasreader.pyi
@@ -34,7 +34,7 @@ def read_sas(
     *,
     format: Literal["sas7bdat"],
     index: Hashable | None = ...,
-    encoding: str | None = ...,
+    encoding: Literal["infer"] | None = ...,
     chunksize: int,
     iterator: bool = ...,
     compression: CompressionOptions = ...,
@@ -45,7 +45,7 @@ def read_sas(
     *,
     format: Literal["xport"],
     index: Hashable | None = ...,
-    encoding: str | None = ...,
+    encoding: Literal["infer"] | None = ...,
     chunksize: int,
     iterator: bool = ...,
     compression: CompressionOptions = ...,
@@ -56,7 +56,7 @@ def read_sas(
     *,
     format: None = ...,
     index: Hashable | None = ...,
-    encoding: str | None = ...,
+    encoding: Literal["infer"] | None = ...,
     chunksize: int,
     iterator: bool = ...,
     compression: CompressionOptions = ...,
@@ -67,7 +67,7 @@ def read_sas(
     *,
     format: Literal["sas7bdat"],
     index: Hashable | None = ...,
-    encoding: str | None = ...,
+    encoding: Literal["infer"] | None = ...,
     chunksize: int | None = ...,
     iterator: Literal[True],
     compression: CompressionOptions = ...,
@@ -78,7 +78,7 @@ def read_sas(
     *,
     format: Literal["xport"],
     index: Hashable | None = ...,
-    encoding: str | None = ...,
+    encoding: Literal["infer"] | None = ...,
     chunksize: int | None = ...,
     iterator: Literal[True],
     compression: CompressionOptions = ...,
@@ -89,7 +89,7 @@ def read_sas(
     *,
     format: None = ...,
     index: Hashable | None = ...,
-    encoding: str | None = ...,
+    encoding: Literal["infer"] | None = ...,
     chunksize: int | None = ...,
     iterator: Literal[True],
     compression: CompressionOptions = ...,
@@ -100,7 +100,7 @@ def read_sas(
     *,
     format: Literal["xport", "sas7bdat"] | None = ...,
     index: Hashable | None = ...,
-    encoding: str | None = ...,
+    encoding: Literal["infer"] | None = ...,
     chunksize: None = ...,
     iterator: Literal[False] = ...,
     compression: CompressionOptions = ...,
diff --git a/tests/test_io.py b/tests/test_io.py
index e259b82e..42831552 100644
--- a/tests/test_io.py
+++ b/tests/test_io.py
@@ -1204,3 +1204,8 @@ def test_sqlalchemy_text() -> None:
                 assert_type(read_sql(sql_select, con=conn), DataFrame),
                 DataFrame,
             )
+
+
+def test_read_sas_encoding() -> None:
+    path = pathlib.Path(CWD, "data", "airline.sas7bdat")
+    check(assert_type(read_sas(path), DataFrame), DataFrame)