diff --git a/docs/verification-matrix.md b/docs/verification-matrix.md
index 96e4005..c3d9796 100644
--- a/docs/verification-matrix.md
+++ b/docs/verification-matrix.md
@@ -24,7 +24,7 @@
 | SR-14 | Correct memory index usage in adapters | partial | — | `proofs/adapter/` |
 | SR-15 | Correct list copy length | partial | `adapter_safety::test_sr15_list_copy_length` | — |
 | SR-16 | Recursive inner pointer fixup | partial | `adapter_safety::test_sr16_inner_pointer_fixup_list_string` | — |
-| SR-17 | Correct string transcoding | verified | `adapter_safety::test_sr17_utf8_to_utf16_string_transcoding`<br>`adapter_safety::test_sr17_utf8_to_utf16_supplementary_plane_transcoding`<br>`adapter_safety::test_sr17_utf16_to_utf8_supplementary_plane_transcoding`<br>`adapter_safety::test_sr17_utf16_to_utf8_lone_high_surrogate_replacement`<br>`adapter_safety::test_sr17_utf16_to_utf8_midstring_lone_surrogate_replacement`<br>`adapter_safety::test_sr17_utf16_to_utf8_malformed_surrogate_matrix`<br>`adapter_safety::test_sr17_utf8_to_utf16_malformed_matrix`<br>`adapter_safety::test_sr17_latin1_to_utf16_transcoding`<br>`adapter_safety::test_253_read_latin1_tagclear_to_utf16`<br>`adapter_safety::test_253_read_latin1_tagclear_to_utf8`<br>`adapter_safety::test_253_read_latin1_tagset_to_utf16`<br>`adapter_safety::test_253_read_latin1_tagset_to_utf8_supplementary`<br>`adapter_safety::test_253_write_utf8_to_latin1_fits`<br>`adapter_safety::test_253_write_utf8_to_latin1_needs_utf16`<br>`adapter_safety::test_253_write_utf16_to_latin1_fits`<br>`adapter_safety::test_253_write_utf16_to_latin1_needs_utf16_supplementary`<br>`adapter_safety::ls_p_21_latin1_utf16_tag_honored_roundtrip`<br>`resolver::tests::test_sr17_all_encoding_pairs_transcoding_matrix` | — |
+| SR-17 | Correct string transcoding | verified | `adapter_safety::test_sr17_utf8_to_utf16_string_transcoding`<br>`adapter_safety::test_sr17_utf8_to_utf16_supplementary_plane_transcoding`<br>`adapter_safety::test_sr17_utf16_to_utf8_supplementary_plane_transcoding`<br>`adapter_safety::test_sr17_utf16_to_utf8_lone_high_surrogate_replacement`<br>`adapter_safety::test_sr17_utf16_to_utf8_midstring_lone_surrogate_replacement`<br>`adapter_safety::test_sr17_utf16_to_utf8_malformed_surrogate_matrix`<br>`adapter_safety::test_sr17_utf8_to_utf16_malformed_matrix`<br>`adapter_safety::test_sr17_latin1_to_utf16_transcoding`<br>`adapter_safety::test_253_read_latin1_tagclear_to_utf16`<br>`adapter_safety::test_253_read_latin1_tagclear_to_utf8`<br>`adapter_safety::test_253_read_latin1_tagset_to_utf16`<br>`adapter_safety::test_253_read_latin1_tagset_to_utf8_supplementary`<br>`adapter_safety::test_253_write_utf8_to_latin1_fits`<br>`adapter_safety::test_253_write_utf8_to_latin1_needs_utf16`<br>`adapter_safety::test_253_write_utf16_to_latin1_fits`<br>`adapter_safety::test_253_write_utf16_to_latin1_needs_utf16_supplementary`<br>`adapter_safety::ls_p_21_latin1_utf16_tag_honored_roundtrip`<br>`resolver::tests::test_sr17_all_encoding_pairs_transcoding_matrix`<br>`adapter_safety::test_361_same_memory_utf8_to_utf16_transcoding` (same-memory, #361) | — |
 | SR-18 | Adapter instruction ordering | not-verified | — | — |
 | SR-19 | Deterministic output | partial | `tests::test_deterministic_output`<br>`resolver::tests::test_resolver_preserves_order_stability` | — |
 | SR-20 | Fail-fast on unresolvable state | partial | `tests::test_fuser_empty_components_error`<br>`tests::test_fuser_rejects_core_module_input`<br>`tests::test_fuser_address_rebasing_requires_shared_memory`<br>`tests::test_fuser_rejects_invalid_wasm` | — |
diff --git a/meld-core/src/adapter/call_lowering.rs b/meld-core/src/adapter/call_lowering.rs
index db3efcb..e4615fd 100644
--- a/meld-core/src/adapter/call_lowering.rs
+++ b/meld-core/src/adapter/call_lowering.rs
@@ -46,7 +46,7 @@
 //! loud on the identical case (#272), so this closes the sync gap consistently.
 
 use super::AdapterClass;
-use crate::{Error, Result};
+use crate::Result;
 
 /// The facts about one call boundary that determine how it is lowered. All are
 /// cheap booleans read from the resolved [`AdapterSite`](crate::resolver::AdapterSite)
@@ -83,41 +83,25 @@ pub struct CallLoweringPlan {
 
 /// Resolve how a single cross-component call boundary is lowered.
 ///
-/// Class selection (unchanged from the pre-extraction `generate_adapter`):
-/// - cross-memory + encoding mismatch → `Transcode`
+/// Class selection:
+/// - encoding mismatch (needs transcoding) → `Transcode`, whether or not the
+///   boundary crosses memory (#361 — the transcode adapter is
+///   memory-index-parameterised, so it transcodes correctly within one shared
+///   memory as well as across two)
 /// - cross-memory, same encoding → `MemoryCopy`
-/// - same memory → `Direct`
+/// - same memory, same encoding → `Direct`
 ///
 /// and `inline_eligible` iff inlining is on, the class is `Direct`, and the call
 /// carries no resource conversions and no post-return.
-///
-/// # Errors
-///
-/// Hard-fails ([`Error::AdapterGeneration`](crate::Error::AdapterGeneration))
-/// when the boundary needs transcoding but does **not** cross memory
-/// (`needs_transcoding && !crosses_memory`). A same-memory boundary is lowered
-/// as a `Direct` shim that does not transcode, so emitting one for a
-/// mixed-encoding call would deliver string bytes verbatim in the wrong encoding
-/// — a silent miscompile. This is the sync twin of `guard_async_cross_encoding_strings`
-/// (the async path already fails loud here, #272). Supporting same-memory
-/// transcoding is tracked in #361; until then we refuse rather than corrupt.
 pub fn resolve_call_lowering_plan(facts: BoundaryFacts) -> Result<CallLoweringPlan> {
-    // #361: a boundary that needs transcoding but does not cross memory has no
-    // lowering that transcodes — `Direct` (the same-memory class) is a thin
-    // shim. Fail loud instead of silently mis-transcoding (mirrors the async
-    // guard, #272).
-    if facts.needs_transcoding && !facts.crosses_memory {
-        return Err(Error::AdapterGeneration(
-            "same-memory string transcoding is not supported: this call requires \
-             transcoding (caller and callee use different string encodings) but \
-             does not cross a memory boundary, so it would be lowered as a Direct \
-             shim that copies the bytes verbatim — silently mis-transcoding. The \
-             async path already fails loud here (#272); see #361 to support it"
-                .to_string(),
-        ));
-    }
-
-    let class = if facts.crosses_memory && facts.needs_transcoding {
+    // #361: transcoding is required whenever the encodings differ, regardless of
+    // whether memory is crossed. Route to `Transcode`; the adapter reads from
+    // `caller_memory` and writes the transcoded bytes to `callee_memory` (both
+    // the one shared memory under `--memory shared`), so a same-memory boundary
+    // transcodes correctly rather than falling through to a verbatim `Direct`
+    // copy. (This lifts the #360 hard-fail, which was the loud-not-silent
+    // placeholder until this support landed.)
+    let class = if facts.needs_transcoding {
         AdapterClass::Transcode
     } else if facts.crosses_memory {
         AdapterClass::MemoryCopy
@@ -190,20 +174,18 @@ mod tests {
     }
 
     #[test]
-    fn same_memory_transcoding_hard_fails() {
-        // #361: a boundary that needs transcoding but does not cross memory has
-        // no lowering that transcodes (Direct is a thin shim). Emitting one
-        // would silently mis-transcode, so the seam refuses — the sync twin of
-        // the async cross-encoding guard (#272).
-        let err = resolve_call_lowering_plan(BoundaryFacts {
+    fn same_memory_transcoding_routes_to_transcode() {
+        // #361: a boundary that needs transcoding but does NOT cross memory now
+        // routes to `Transcode` (the transcode adapter is memory-index-
+        // parameterised and transcodes within one shared memory), rather than
+        // hard-failing or falling through to a verbatim `Direct` copy.
+        let plan = resolve_call_lowering_plan(BoundaryFacts {
             needs_transcoding: true,
             ..direct()
         })
-        .unwrap_err();
-        assert!(
-            matches!(err, Error::AdapterGeneration(_)),
-            "expected AdapterGeneration hard-fail, got {err:?}"
-        );
+        .unwrap();
+        assert_eq!(plan.class, AdapterClass::Transcode);
+        assert!(!plan.inline_eligible, "Transcode is never inlinable");
     }
 
     #[test]
diff --git a/meld-core/tests/adapter_safety.rs b/meld-core/tests/adapter_safety.rs
index 7c328b9..5252407 100644
--- a/meld-core/tests/adapter_safety.rs
+++ b/meld-core/tests/adapter_safety.rs
@@ -2095,6 +2095,65 @@ fn test_sr17_utf8_to_utf16_string_transcoding() {
     );
 }
 
+/// #361: the SAME transcoding, but under `SharedMemory` — the caller and callee
+/// share one linear memory, so `crosses_memory` is false. #360 hard-failed this
+/// (the class dispatch only reached `Transcode` when memory was crossed); this
+/// proves same-memory transcoding now works: the transcode adapter is
+/// memory-index-parameterised (src reads `caller_memory`, dst writes
+/// `callee_memory` — both 0 here), so it transcodes UTF-8 → UTF-16 within the
+/// one shared memory. `run()` must still return 500.
+#[test]
+fn test_361_same_memory_utf8_to_utf16_transcoding() {
+    let callee = build_callee_utf16_string_component();
+    let caller = build_caller_string_component();
+
+    let config = FuserConfig {
+        memory_strategy: MemoryStrategy::SharedMemory,
+        attestation: false,
+        reproducible: false,
+        component_provenance: false,
+        address_rebasing: false,
+        preserve_names: false,
+        custom_sections: meld_core::CustomSectionHandling::Drop,
+        dwarf_handling: meld_core::DwarfHandling::Strip,
+        output_format: meld_core::OutputFormat::CoreModule,
+        opaque_resources: Vec::new(),
+    };
+
+    let mut fuser = Fuser::new(config);
+    fuser
+        .add_component_named(&callee, Some("callee-utf16"))
+        .expect("callee should parse");
+    fuser
+        .add_component_named(&caller, Some("caller-utf8"))
+        .expect("caller should parse");
+
+    let (fused, _stats) = fuser
+        .fuse_with_stats()
+        .expect("#361: same-memory cross-encoding fusion should now succeed");
+
+    let mut validator = wasmparser::Validator::new();
+    validator
+        .validate_all(&fused)
+        .expect("#361: fused output should validate");
+
+    let mut engine_config = Config::new();
+    engine_config.wasm_multi_memory(true);
+    let engine = Engine::new(&engine_config).unwrap();
+    let module = RuntimeModule::new(&engine, &fused).unwrap();
+    let mut store = Store::new(&engine, ());
+    let instance = Instance::new(&mut store, &module, &[]).unwrap();
+    let run = instance
+        .get_typed_func::<(), i32>(&mut store, "run")
+        .expect("#361: fused module should export 'run'");
+    let result = run.call(&mut store, ()).unwrap();
+    assert_eq!(
+        result, 500,
+        "#361: same-memory UTF-8→UTF-16 'Hello' must transcode to 500, not \
+         silently mis-copy"
+    );
+}
+
 /// SR-17 (surrogate-pair clause): a supplementary-plane code point
 /// (U+10000 and above) transcoded UTF-8 → UTF-16 must be encoded as a
 /// surrogate PAIR — two code units — not a single truncated unit. The