new file mode 100755
--- /dev/null
+++ b/tests/test-branch
@@ -0,0 +1,34 @@
+#!/bin/sh
+#
+# test for branch handling
+#
+# XXX: need more tests
+
+hg init
+echo a > a
+echo b > b
+hg ci -A -m 0 -d "1000000 0"
+echo aa > a
+echo bb > b
+hg ci -m 1 -d "1000000 0"
+hg tag -l foo
+hg update 0
+hg parents -b 
+
+# test update
+hg update -b foo
+hg parents
+
+# test merge
+hg update 0
+echo c > c
+hg ci -A -m 0.0 -d "1000000 0"
+hg merge -b foo
+hg parents -b 
+
+# re-test with more branches
+hg update -C 0
+echo d > d
+hg ci -A -m 0.0 -d "1000000 0"
+hg merge -b foo
+hg parents -b