diff --git a/mercurial/commands.py b/mercurial/commands.py
--- a/mercurial/commands.py
+++ b/mercurial/commands.py
@@ -2095,7 +2095,7 @@ def tip(ui, repo):
     n = repo.changelog.tip()
     show_changeset(ui, repo, changenode=n)
 
-def unbundle(ui, repo, fname):
+def unbundle(ui, repo, fname, **opts):
     """apply a changegroup file
 
     Apply a compressed changegroup file generated by the bundle
@@ -2113,6 +2113,10 @@ def unbundle(ui, repo, fname):
 
     bzgen = bzgenerator(util.filechunkiter(f, 4096))
     repo.addchangegroup(util.chunkbuffer(bzgen))
+    if opts['update']:
+        return update(ui, repo)
+    else:
+        ui.status(_("(run 'hg update' to get a working copy)\n"))
 
 def undo(ui, repo):
     """undo the last commit or pull
@@ -2406,8 +2410,8 @@ table = {
     "tip": (tip, [], _('hg tip')),
     "unbundle":
         (unbundle,
-         [],
-         _('hg unbundle FILE')),
+         [('u', 'update', None, _('update the working directory to tip after unbundle'))],
+         _('hg unbundle [-u] FILE')),
     "undo": (undo, [], _('hg undo')),
     "^update|up|checkout|co":
         (update,