diff --git a/tests/test-up-local-change b/tests/test-up-local-change
new file mode 100755
--- /dev/null
+++ b/tests/test-up-local-change
@@ -0,0 +1,35 @@
+#!/bin/bash
+
+export HGMERGE=true
+
+set -ex
+mkdir r1
+cd r1
+hg init
+echo a > a
+hg addremove
+hg commit -t "1" -u test -d "0 0"
+
+cd ..
+mkdir r2
+cd r2
+hg init ../r1
+hg up
+echo abc > a
+hg diff | sed "s/\(\(---\|+++\).*\)\t.*/\1/"
+
+cd ../r1
+echo b > b
+echo a2 > a
+hg addremove
+hg commit -t "2" -u test -d "0 0"
+
+cd ../r2
+hg -q pull ../r1
+hg status
+hg -d up
+hg -d up -m
+hg parents
+hg -v history
+hg diff | sed "s/\(\(---\|+++\).*\)\t.*/\1/"
+