diff --git a/openhands/runtime/action_execution_server.py b/openhands/runtime/action_execution_server.py
index 2e32bf0fb3..4eafaf416d 100644
--- a/openhands/runtime/action_execution_server.py
+++ b/openhands/runtime/action_execution_server.py
@@ -158,7 +158,7 @@ class ActionExecutor:
         self.bash_session: BashSession | None = None
         self.lock = asyncio.Lock()
         self.plugins: dict[str, Plugin] = {}
-        self.file_editor = OHEditor()
+        self.file_editor = OHEditor(workspace_root=self._initial_cwd)
         self.browser = BrowserEnv(browsergym_eval_env)
         self.start_time = time.time()
         self.last_execution_time = self.start_time
diff --git a/poetry.lock b/poetry.lock
index 43e671a25d..a7d0479e64 100644
--- a/poetry.lock
+++ b/poetry.lock
@@ -706,14 +706,14 @@ virtualenv = ["virtualenv (>=20.0.35)"]
 
 [[package]]
 name = "cachetools"
-version = "5.5.1"
+version = "5.5.2"
 description = "Extensible memoizing collections and decorators"
 optional = false
 python-versions = ">=3.7"
 groups = ["main", "evaluation"]
 files = [
-    {file = "cachetools-5.5.1-py3-none-any.whl", hash = "sha256:b76651fdc3b24ead3c648bbdeeb940c1b04d365b38b4af66788f9ec4a81d42bb"},
-    {file = "cachetools-5.5.1.tar.gz", hash = "sha256:70f238fbba50383ef62e55c6aff6d9673175fe59f7c6782c7a0b9e38f4a9df95"},
+    {file = "cachetools-5.5.2-py3-none-any.whl", hash = "sha256:d26a22bcc62eb95c3beabd9f1ee5e820d3d2704fe2967cbe350e20c8ffcd3f0a"},
+    {file = "cachetools-5.5.2.tar.gz", hash = "sha256:1a661caa9175d26759571b2e19580f9d6393969e5dfca11fdb1f947a23e640d4"},
 ]
 
 [[package]]
@@ -4820,18 +4820,18 @@ realtime = ["websockets (>=13,<15)"]
 
 [[package]]
 name = "openhands-aci"
-version = "0.2.5"
+version = "0.2.6"
 description = "An Agent-Computer Interface (ACI) designed for software development agents OpenHands."
 optional = false
-python-versions = "<4.0,>=3.12"
+python-versions = "^3.12"
 groups = ["main"]
-files = [
-    {file = "openhands_aci-0.2.5-py3-none-any.whl", hash = "sha256:775a3ea9eacf090ff6fa6819dcc449a359a770f2d25232890441a799b0bd3c2e"},
-    {file = "openhands_aci-0.2.5.tar.gz", hash = "sha256:cfa51834771fb7f35cc754f04ee3b6d8d985df79a6fa4bdd0f57a8a20e9f0883"},
-]
+files = []
+develop = false
 
 [package.dependencies]
-binaryornot = ">=0.4.4,<0.5.0"
+binaryornot = "^0.4.4"
+cachetools = "^5.5.2"
+chardet = "^5.0.0"
 flake8 = "*"
 gitpython = "*"
 grep-ast = "0.3.3"
@@ -4840,12 +4840,18 @@ networkx = "*"
 numpy = "*"
 pandas = "*"
 scipy = "*"
-tree-sitter = ">=0.24.0,<0.25.0"
-tree-sitter-javascript = ">=0.23.1,<0.24.0"
-tree-sitter-python = ">=0.23.6,<0.24.0"
-tree-sitter-ruby = ">=0.23.1,<0.24.0"
-tree-sitter-typescript = ">=0.23.2,<0.24.0"
-whatthepatch = ">=1.0.6,<2.0.0"
+tree-sitter = "^0.24.0"
+tree-sitter-javascript = "^0.23.1"
+tree-sitter-python = "^0.23.6"
+tree-sitter-ruby = "^0.23.1"
+tree-sitter-typescript = "^0.23.2"
+whatthepatch = "^1.0.6"
+
+[package.source]
+type = "git"
+url = "https://github.com/All-Hands-AI/openhands-aci.git"
+reference = "add-encoding-detection"
+resolved_reference = "040d9578d90894409f51ecca877b120fe696fe0b"
 
 [[package]]
 name = "opentelemetry-api"
@@ -9050,4 +9056,4 @@ testing = ["coverage[toml]", "zope.event", "zope.testing"]
 [metadata]
 lock-version = "2.1"
 python-versions = "^3.12"
-content-hash = "3a03748738e9eaf8e82b1a672cbf64a611d1ae7ecf57ebc71eb1a5113c3f7440"
+content-hash = "6a644bc65782a717a49718496bd279ecb888807ec625d992af4448cc5d9271c1"
diff --git a/pyproject.toml b/pyproject.toml
index 28ab89b220..ae312955b1 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -67,7 +67,7 @@ runloop-api-client = "0.26.0"
 libtmux = ">=0.37,<0.40"
 pygithub = "^2.5.0"
 joblib = "*"
-openhands-aci = "^0.2.5"
+openhands-aci = "^0.2.6"
 python-socketio = "^5.11.4"
 redis = "^5.2.0"
 sse-starlette = "^2.1.3"