diff --git a/docs/api_core.rst b/docs/api_core.rst
index 730f841f..db052cb5 100644
--- a/docs/api_core.rst
+++ b/docs/api_core.rst
@@ -1636,9 +1636,11 @@ parameter of :cpp:func:`module_::def`, :cpp:func:`class_::def`,
 
       Set a flag noting that the function argument accepts ``None``. Can only
       be used for python wrapper types (e.g. :cpp:class:`handle`,
-      :cpp:class:`int_`) and types that have been bound using
-      :cpp:class:`class_`. You cannot use this to implement functions that
-      accept null pointers to builtin C++ types like ``int *i = nullptr``.
+      :cpp:class:`int_`), for types that have been bound using
+      :cpp:class:`class_`, for :cpp:class:`ndarray`, ``std::optional``,
+      ``std::variant``, and ``const char*``.
+      You cannot use this to implement functions that
+      accept null pointers to other builtin C++ types like ``int *i = nullptr``.
 
    .. cpp:function:: arg &noconvert(bool value = true)
 
diff --git a/docs/porting.rst b/docs/porting.rst
index 832b7ae1..45365705 100644
--- a/docs/porting.rst
+++ b/docs/porting.rst
@@ -86,12 +86,6 @@ It is also possible to set a ``None`` default value, in which case the
 
    m.def("func", &func, "arg"_a = nb::none());
 
-``None``-valued arguments are only supported by two of the three parameter
-passing styles described in the section on :ref:`information exchange
-<exchange>`. In particular, they are supported by :ref:`bindings <bindings>`
-and :ref:`wrappers <wrappers>`, *but not* by :ref:`type casters
-<type_casters>`.
-
 Shared pointers and holders
 ---------------------------
 
diff --git a/include/nanobind/nb_cast.h b/include/nanobind/nb_cast.h
index 74ad6cef..4fdc2126 100644
--- a/include/nanobind/nb_cast.h
+++ b/include/nanobind/nb_cast.h
@@ -268,11 +268,12 @@ template <> struct type_caster<char> {
     template <typename T_>
     using Cast = std::conditional_t<is_pointer_v<T_>, const char *, char>;
 
-    bool from_python(handle src, uint8_t, cleanup_list *) noexcept {
+    bool from_python(handle src, uint8_t flags, cleanup_list *) noexcept {
         value = PyUnicode_AsUTF8AndSize(src.ptr(), &size);
         if (!value) {
             PyErr_Clear();
-            return false;
+            // optimize for src being a string, check for None afterwards
+            return src.is_none() && (flags & (uint8_t) cast_flags::accepts_none);
         }
         return true;
     }
diff --git a/tests/test_functions.cpp b/tests/test_functions.cpp
index 45d182c9..279e8e85 100644
--- a/tests/test_functions.cpp
+++ b/tests/test_functions.cpp
@@ -240,6 +240,7 @@ NB_MODULE(test_functions_ext, m) {
 
     // Test string caster
     m.def("test_12", [](const char *c) { return nb::str(c); });
+    m.def("test_12_n", [](const char *c) { return nb::str(c ? c : "n/a"); }, nb::arg().none());
     m.def("test_13", []() -> const char * { return "test"; });
     m.def("test_14", [](nb::object o) -> const char * { return nb::cast<const char *>(o); });
 
diff --git a/tests/test_functions.py b/tests/test_functions.py
index cbd72235..eaa70338 100644
--- a/tests/test_functions.py
+++ b/tests/test_functions.py
@@ -256,6 +256,8 @@ def test21_numpy_overloads():
 
 def test22_string_return():
     assert t.test_12("hello") == "hello"
+    assert t.test_12_n("hello") == "hello"
+    assert t.test_12_n(None) == "n/a"
     assert t.test_13() == "test"
     assert t.test_14("abc") == "abc"
 
diff --git a/tests/test_functions_ext.pyi.ref b/tests/test_functions_ext.pyi.ref
index 3a025ba1..c3e3330e 100644
--- a/tests/test_functions_ext.pyi.ref
+++ b/tests/test_functions_ext.pyi.ref
@@ -100,6 +100,8 @@ def test_11_ull(arg: int, /) -> int: ...
 
 def test_12(arg: str, /) -> str: ...
 
+def test_12_n(arg: str | None) -> str: ...
+
 def test_13() -> str: ...
 
 def test_14(arg: object, /) -> str: ...