diff --git a/tests/test-manifest-merging b/tests/test-manifest-merging
new file mode 100755
--- /dev/null
+++ b/tests/test-manifest-merging
@@ -0,0 +1,34 @@
+#!/bin/sh
+
+echo % init foo-base
+hg init foo-base
+
+echo % create alpha in first repo
+cd foo-base
+echo 'alpha' > alpha
+hg ci -A -m 'add alpha' -d '1 0'
+cd ..
+
+echo % clone foo-base to foo-work
+hg clone foo-base foo-work
+
+echo % create beta in second repo
+cd foo-work
+echo 'beta' > beta
+hg ci -A -m 'add beta' -d '2 0'
+cd ..
+
+echo % create gamma in first repo
+cd foo-base
+echo 'gamma' > gamma
+hg ci -A -m 'add gamma' -d '3 0'
+cd ..
+
+echo % pull into work and merge
+cd foo-work
+hg pull
+hg merge
+
+echo % revert to changeset 1 to simulate a failed merge
+rm -fr *
+hg up -C 1