diff --git a/tests/test-merge7 b/tests/test-merge7
new file mode 100755
--- /dev/null
+++ b/tests/test-merge7
@@ -0,0 +1,66 @@
+#!/bin/sh
+
+# initial
+hg init test-a
+cd test-a
+cat >test.txt <<"EOF"
+1
+2
+3
+EOF
+hg add test.txt
+hg commit -m "Initial" -d "0 0"
+
+# clone
+cd ..
+hg clone test-a test-b
+
+# change test-a
+cd test-a
+cat >test.txt <<"EOF"
+one
+two
+three
+EOF
+hg commit -m "Numbers as words" -d "0 0"
+
+# change test-b
+cd ../test-b
+cat >test.txt <<"EOF"
+1
+2.5
+3
+EOF
+hg commit -m "2 -> 2.5" -d "0 0"
+
+# now pull and merge from test-a
+hg pull
+HGMERGE=merge hg update -m
+# resolve conflict
+cat >test.txt <<"EOF"
+one
+two-point-five
+three
+EOF
+rm -f *.orig
+hg commit -m "Merge 1" -d "0 0"
+
+# change test-a again
+cd ../test-a
+cat >test.txt <<"EOF"
+one
+two-point-one
+three
+EOF
+hg commit -m "two -> two-point-one"
+
+# pull and merge from test-a again
+cd ../test-b
+hg pull
+HGMERGE=merge hg update --debug -m
+
+cat test.txt
+
+hg debugindex .hg/data/test.txt.i
+
+hg log