diff --git a/hgext/largefiles/lfcommands.py b/hgext/largefiles/lfcommands.py
--- a/hgext/largefiles/lfcommands.py
+++ b/hgext/largefiles/lfcommands.py
@@ -8,7 +8,7 @@
 
 '''High-level command function for lfconvert, plus the cmdtable.'''
 
-import os
+import os, errno
 import shutil
 
 from mercurial import util, match as match_, hg, node, context, error, \
@@ -403,22 +403,13 @@ def cachelfiles(ui, repo, node, filelist
     toget = []
 
     for lfile in lfiles:
-        # If we are mid-merge, then we have to trust the standin that is in the
-        # working copy to have the correct hashvalue.  This is because the
-        # original hg.merge() already updated the standin as part of the normal
-        # merge process -- we just have to update the largefile to match.
-        if (getattr(repo, "_ismerging", False) and
-             os.path.exists(repo.wjoin(lfutil.standin(lfile)))):
-            expectedhash = lfutil.readstandin(repo, lfile)
-        else:
+        try:
             expectedhash = repo[node][lfutil.standin(lfile)].data().strip()
-
-        # if it exists and its hash matches, it might have been locally
-        # modified before updating and the user chose 'local'.  in this case,
-        # it will not be in any store, so don't look for it.
-        if ((not os.path.exists(repo.wjoin(lfile)) or
-             expectedhash != lfutil.hashfile(repo.wjoin(lfile))) and
-            not lfutil.findfile(repo, expectedhash)):
+        except IOError, err:
+            if err.errno == errno.ENOENT:
+                continue # node must be None and standin wasn't found in wctx
+            raise
+        if not lfutil.findfile(repo, expectedhash):
             toget.append((lfile, expectedhash))
 
     if toget:
diff --git a/hgext/largefiles/overrides.py b/hgext/largefiles/overrides.py
--- a/hgext/largefiles/overrides.py
+++ b/hgext/largefiles/overrides.py
@@ -684,15 +684,8 @@ def hgupdaterepo(orig, repo, node, overw
     return result
 
 def hgmerge(orig, repo, node, force=None, remind=True):
-    # Mark the repo as being in the middle of a merge, so that
-    # updatelfiles() will know that it needs to trust the standins in
-    # the working copy, not in the standins in the current node
-    repo._ismerging = True
-    try:
-        result = orig(repo, node, force, remind)
-        lfcommands.updatelfiles(repo.ui, repo)
-    finally:
-        repo._ismerging = False
+    result = orig(repo, node, force, remind)
+    lfcommands.updatelfiles(repo.ui, repo)
     return result
 
 # When we rebase a repository with remotely changed largefiles, we need to