diff --git a/tests/test-pull-update b/tests/test-pull-update
new file mode 100755
--- /dev/null
+++ b/tests/test-pull-update
@@ -0,0 +1,29 @@
+#!/bin/sh
+#
+
+hg init t
+cd t
+echo 1 > foo
+hg ci -Am m
+
+cd ..
+hg clone t tt
+cd tt
+echo 1.1 > foo
+hg ci -Am m
+
+cd ../t
+echo 1.2 > foo
+hg ci -Am m
+echo % should fail
+hg pull -u ../tt
+
+cd ../tt
+echo % should fail
+hg pull -u ../t
+HGMERGE=true hg merge
+hg ci -mm
+
+cd ../t
+echo % should work
+hg pull -u ../tt