diff --git a/tests/test-dirstate.t b/tests/test-dirstate.t
--- a/tests/test-dirstate.t
+++ b/tests/test-dirstate.t
@@ -61,3 +61,28 @@ Test modulo storage/comparison of absurd
   $ hg debugstate
   n 644          2 2018-01-19 15:14:08 a
 #endif
+
+Verify that exceptions during a dirstate change leave the dirstate
+coherent (issue4353)
+
+  $ cat > ../dirstateexception.py <<EOF
+  > from mercurial import merge, extensions, util
+  > 
+  > def wraprecordupdates(orig, repo, actions, branchmerge):
+  >     raise util.Abort("simulated error while recording dirstateupdates")
+  > 
+  > def reposetup(ui, repo):
+  >     extensions.wrapfunction(merge, 'recordupdates', wraprecordupdates)
+  > EOF
+
+  $ hg rm a
+  $ hg commit -m 'rm a'
+  $ echo "[extensions]" >> .hg/hgrc
+  $ echo "dirstateex=../dirstateexception.py" >> .hg/hgrc
+  $ hg up 0
+  abort: simulated error while recording dirstateupdates
+  [255]
+  $ hg log -r . -T '{rev}\n'
+  1
+  $ hg status
+  ? a