diff --git a/lib/stdio/encoding.js b/lib/stdio/encoding.js
index 2fc7c310a9..f4e913130a 100644
--- a/lib/stdio/encoding.js
+++ b/lib/stdio/encoding.js
@@ -1,12 +1,13 @@
 import {StringDecoder} from 'node:string_decoder';
 import {Buffer} from 'node:buffer';
 import {isUint8Array} from './utils.js';
+import {willPipeStreams} from './pipe.js';
 
 // Apply the `encoding` option using an implicit generator.
 // This encodes the final output of `stdout`/`stderr`.
 export const handleStreamsEncoding = (stdioStreams, {encoding}, isSync) => {
 	const newStdioStreams = stdioStreams.map(stdioStream => ({...stdioStream, encoding}));
-	if (newStdioStreams[0].direction === 'input' || IGNORED_ENCODINGS.has(encoding) || isSync) {
+	if (!shouldEncodeOutput(newStdioStreams, encoding, isSync)) {
 		return newStdioStreams;
 	}
 
@@ -24,6 +25,11 @@ export const handleStreamsEncoding = (stdioStreams, {encoding}, isSync) => {
 	];
 };
 
+const shouldEncodeOutput = (stdioStreams, encoding, isSync) => stdioStreams[0].direction === 'output'
+	&& !IGNORED_ENCODINGS.has(encoding)
+	&& !isSync
+	&& willPipeStreams(stdioStreams);
+
 // eslint-disable-next-line unicorn/text-encoding-identifier-case
 const IGNORED_ENCODINGS = new Set(['utf8', 'utf-8', 'buffer']);
 
diff --git a/lib/stdio/handle.js b/lib/stdio/handle.js
index be2f8f28dd..f3dc722e7d 100644
--- a/lib/stdio/handle.js
+++ b/lib/stdio/handle.js
@@ -5,6 +5,7 @@ import {handleNativeStream} from './native.js';
 import {handleInputOptions} from './input.js';
 import {handleStreamsEncoding} from './encoding.js';
 import {normalizeGenerators} from './generator.js';
+import {updateStdio} from './pipe.js';
 
 // Handle `input`, `inputFile`, `stdin`, `stdout` and `stderr` options, before spawning, in async/sync mode
 export const handleInput = (addProperties, options, isSync) => {
@@ -16,7 +17,7 @@ export const handleInput = (addProperties, options, isSync) => {
 		.map(stdioStreams => handleStreamsEncoding(stdioStreams, options, isSync))
 		.map(stdioStreams => normalizeGenerators(stdioStreams))
 		.map(stdioStreams => addStreamsProperties(stdioStreams, addProperties));
-	options.stdio = transformStdio(stdioStreamsGroups);
+	options.stdio = updateStdio(stdioStreamsGroups);
 	return stdioStreamsGroups;
 };
 
@@ -91,17 +92,3 @@ const addStreamsProperties = (stdioStreams, addProperties) => stdioStreams.map(s
 	...stdioStream,
 	...addProperties[stdioStream.direction][stdioStream.type]?.(stdioStream),
 }));
-
-// When the `std*: Iterable | WebStream | URL | filePath`, `input` or `inputFile` option is used, we pipe to `spawned.std*`.
-// When the `std*: Array` option is used, we emulate some of the native values ('inherit', Node.js stream and file descriptor integer). To do so, we also need to pipe to `spawned.std*`.
-// Therefore the `std*` options must be either `pipe` or `overlapped`. Other values do not set `spawned.std*`.
-const transformStdio = stdioStreamsGroups => stdioStreamsGroups.map(stdioStreams => transformStdioItem(stdioStreams));
-
-const transformStdioItem = stdioStreams => {
-	if (stdioStreams.length > 1) {
-		return stdioStreams.some(({value}) => value === 'overlapped') ? 'overlapped' : 'pipe';
-	}
-
-	const [stdioStream] = stdioStreams;
-	return stdioStream.type !== 'native' && stdioStream.value !== 'overlapped' ? 'pipe' : stdioStream.value;
-};
diff --git a/lib/stdio/pipe.js b/lib/stdio/pipe.js
new file mode 100644
index 0000000000..f12312a0c5
--- /dev/null
+++ b/lib/stdio/pipe.js
@@ -0,0 +1,18 @@
+// When the `std*: Iterable | WebStream | URL | filePath`, `input` or `inputFile` option is used, we pipe to `childProcess.std*`.
+// When the `std*: Array` option is used, we emulate some of the native values ('inherit', Node.js stream and file descriptor integer). To do so, we also need to pipe to `childProcess.std*`.
+// Therefore the `std*` options must be either `pipe` or `overlapped`. Other values do not set `childProcess.std*`.
+export const updateStdio = stdioStreamsGroups => stdioStreamsGroups.map(stdioStreams => updateStdioItem(stdioStreams));
+
+// Whether `childProcess.std*` will be set
+export const willPipeStreams = stdioStreams => PIPED_STDIO_VALUES.has(updateStdioItem(stdioStreams));
+
+const PIPED_STDIO_VALUES = new Set(['pipe', 'overlapped', undefined, null]);
+
+const updateStdioItem = stdioStreams => {
+	if (stdioStreams.length > 1) {
+		return stdioStreams.some(({value}) => value === 'overlapped') ? 'overlapped' : 'pipe';
+	}
+
+	const [stdioStream] = stdioStreams;
+	return stdioStream.type !== 'native' && stdioStream.value !== 'overlapped' ? 'pipe' : stdioStream.value;
+};
diff --git a/test/stdio/encoding.js b/test/stdio/encoding.js
index 1992de6cac..139705384c 100644
--- a/test/stdio/encoding.js
+++ b/test/stdio/encoding.js
@@ -1,5 +1,6 @@
 import {Buffer} from 'node:buffer';
 import {exec} from 'node:child_process';
+import process from 'node:process';
 import {promisify} from 'node:util';
 import test from 'ava';
 import getStream, {getStreamAsBuffer} from 'get-stream';
@@ -147,3 +148,26 @@ test('Other encodings work with transforms that return objects', async t => {
 	const {stdout} = await execa('noop.js', {stdout: outputObjectGenerator, encoding: 'base64'});
 	t.deepEqual(stdout, [foobarObject]);
 });
+
+const testIgnoredEncoding = async (t, stdoutOption, isUndefined) => {
+	const {stdout} = await execa('empty.js', {stdout: stdoutOption, encoding: 'base64'});
+	t.is(stdout === undefined, isUndefined);
+};
+
+test('Is ignored with other encodings and "ignore"', testIgnoredEncoding, 'ignore', true);
+test('Is ignored with other encodings and ["ignore"]', testIgnoredEncoding, ['ignore'], true);
+test('Is ignored with other encodings and "ipc"', testIgnoredEncoding, 'ipc', true);
+test('Is ignored with other encodings and ["ipc"]', testIgnoredEncoding, ['ipc'], true);
+test('Is ignored with other encodings and "inherit"', testIgnoredEncoding, 'inherit', true);
+test('Is ignored with other encodings and ["inherit"]', testIgnoredEncoding, ['inherit'], true);
+test('Is ignored with other encodings and 1', testIgnoredEncoding, 1, true);
+test('Is ignored with other encodings and [1]', testIgnoredEncoding, [1], true);
+test('Is ignored with other encodings and process.stdout', testIgnoredEncoding, process.stdout, true);
+test('Is ignored with other encodings and [process.stdout]', testIgnoredEncoding, [process.stdout], true);
+test('Is not ignored with other encodings and "pipe"', testIgnoredEncoding, 'pipe', false);
+test('Is not ignored with other encodings and ["pipe"]', testIgnoredEncoding, ['pipe'], false);
+test('Is not ignored with other encodings and "overlapped"', testIgnoredEncoding, 'overlapped', false);
+test('Is not ignored with other encodings and ["overlapped"]', testIgnoredEncoding, ['overlapped'], false);
+test('Is not ignored with other encodings and ["inherit", "pipe"]', testIgnoredEncoding, ['inherit', 'pipe'], false);
+test('Is not ignored with other encodings and undefined', testIgnoredEncoding, undefined, false);
+test('Is not ignored with other encodings and null', testIgnoredEncoding, null, false);