diff --git a/core/string/src/iter.rs b/core/string/src/iter.rs
index ead0e8c94c7..e90c394d7b7 100644
--- a/core/string/src/iter.rs
+++ b/core/string/src/iter.rs
@@ -1,6 +1,6 @@
 use std::iter::FusedIterator;
 
-use crate::JsStr;
+use crate::{CodePoint, JsStr};
 
 use super::JsStrVariant;
 
@@ -97,3 +97,45 @@ impl ExactSizeIterator for Windows<'_> {
         }
     }
 }
+
+#[derive(Debug, Clone)]
+enum CodePointsIterInner<'a> {
+    Latin1(std::iter::Copied<std::slice::Iter<'a, u8>>),
+    Utf16(std::char::DecodeUtf16<std::iter::Copied<std::slice::Iter<'a, u16>>>),
+}
+
+#[derive(Debug, Clone)]
+pub struct CodePointsIter<'a> {
+    inner: CodePointsIterInner<'a>,
+}
+
+impl<'a> CodePointsIter<'a> {
+    pub(crate) fn new(s: JsStr<'a>) -> Self {
+        let inner = match s.variant() {
+            JsStrVariant::Latin1(s) => CodePointsIterInner::Latin1(s.iter().copied()),
+            JsStrVariant::Utf16(s) => {
+                CodePointsIterInner::Utf16(char::decode_utf16(s.iter().copied()))
+            }
+        };
+        CodePointsIter { inner }
+    }
+}
+
+impl Iterator for CodePointsIter<'_> {
+    type Item = CodePoint;
+
+    #[inline]
+    fn next(&mut self) -> Option<Self::Item> {
+        match &mut self.inner {
+            CodePointsIterInner::Latin1(iter) => {
+                iter.next().map(|b| CodePoint::Unicode(char::from(b)))
+            }
+            CodePointsIterInner::Utf16(iter) => iter.next().map(|res| match res {
+                Ok(c) => CodePoint::Unicode(c),
+                Err(e) => CodePoint::UnpairedSurrogate(e.unpaired_surrogate()),
+            }),
+        }
+    }
+}
+
+impl FusedIterator for CodePointsIter<'_> {}
diff --git a/core/string/src/str.rs b/core/string/src/str.rs
index c915aeb2390..489beea4e99 100644
--- a/core/string/src/str.rs
+++ b/core/string/src/str.rs
@@ -9,7 +9,7 @@ use std::{
     slice::SliceIndex,
 };
 
-use super::iter::Windows;
+use super::iter::{CodePointsIter, Windows};
 
 // Modified port of <https://doc.rust-lang.org/std/primitive.slice.html#method.trim_ascii_start>
 #[inline]
@@ -450,13 +450,10 @@ impl<'a> JsStr<'a> {
     }
 
     /// Gets an iterator of all the Unicode codepoints of a [`JsStr`].
-    // TODO: optimize for Latin1 strings.
     #[inline]
-    pub fn code_points(&self) -> impl Iterator<Item = CodePoint> + Clone + use<'a> {
-        char::decode_utf16(self.iter()).map(|res| match res {
-            Ok(c) => CodePoint::Unicode(c),
-            Err(e) => CodePoint::UnpairedSurrogate(e.unpaired_surrogate()),
-        })
+    #[must_use]
+    pub fn code_points(&self) -> CodePointsIter<'a> {
+        CodePointsIter::new(*self)
     }
 
     /// Checks if the [`JsStr`] contains a byte.
diff --git a/core/string/src/tests.rs b/core/string/src/tests.rs
index 533333883c7..114092978c8 100644
--- a/core/string/src/tests.rs
+++ b/core/string/src/tests.rs
@@ -3,7 +3,7 @@
 use std::hash::{BuildHasher, BuildHasherDefault, Hash};
 
 use crate::{
-    CommonJsStringBuilder, JsStr, JsString, Latin1JsStringBuilder, StaticJsStrings,
+    CodePoint, CommonJsStringBuilder, JsStr, JsString, Latin1JsStringBuilder, StaticJsStrings,
     Utf16JsStringBuilder,
 };
 
@@ -469,3 +469,21 @@ fn common_js_string_builder() {
         "Déjà vu2024年5月21日🎹"
     );
 }
+
+#[test]
+fn code_points_optimization() {
+    // Test Latin1 optimization with extended Latin1 characters
+    let latin1_str = JsStr::latin1(b"Caf\xe9 na\xefve"); // "Café naïve" in Latin1 encoding
+    let latin1_points: Vec<CodePoint> = latin1_str.code_points().collect();
+    let expected_latin1: Vec<CodePoint> = "Café naïve".chars().map(CodePoint::Unicode).collect();
+    assert_eq!(latin1_points, expected_latin1);
+
+    // Test UTF-16 behavior unchanged (including non-ASCII)
+    let utf16_str = JsStr::utf16(&[
+        0x0043, 0x0061, 0x0066, 0x00E9, // "Café"
+        0x0020, // space
+        0x006E, 0x0061, 0x00EF, 0x0076, 0x0065, // "naïve"
+    ]);
+    let utf16_points: Vec<CodePoint> = utf16_str.code_points().collect();
+    assert_eq!(latin1_points, utf16_points); // Same result for same content
+}
diff --git a/typos.toml b/typos.toml
index 82bafb0cb73..3cc33d77a77 100644
--- a/typos.toml
+++ b/typos.toml
@@ -9,3 +9,4 @@ forin = "forin"
 mis = "mis"
 pn = "pn"
 tru = "tru"
+Caf = "Caf"