diff --git a/mercurial/hg.py b/mercurial/hg.py
--- a/mercurial/hg.py
+++ b/mercurial/hg.py
@@ -1076,7 +1076,11 @@ class localrepository:
                     remove.append(f) # other deleted it
             else:
                 if n == m1.get(f, nullid): # same as parent
-                    self.ui.debug("local created %s, keeping\n" % f)
+                    if p2 == pa: # going backwards?
+                        self.ui.debug("remote deleted %s\n" % f)
+                        remove.append(f)
+                    else:
+                        self.ui.debug("local created %s, keeping\n" % f)
                 else:
                     self.ui.debug("working dir created %s, keeping\n" % f)
 
diff --git a/tests/test-backwards-remove b/tests/test-backwards-remove
new file mode 100755
--- /dev/null
+++ b/tests/test-backwards-remove
@@ -0,0 +1,12 @@
+#!/bin/sh -x
+hg init
+echo This is file a1 > a
+hg add a
+hg commit -t "commit #0" -d "0 0" -u user
+ls
+echo This is file b1 > b
+hg add b
+hg commit -t "commit #1" -d "0 0" -u user
+hg co 0
+# B should disappear
+ls
diff --git a/tests/test-backwards-remove.out b/tests/test-backwards-remove.out
new file mode 100644
--- /dev/null
+++ b/tests/test-backwards-remove.out
@@ -0,0 +1,12 @@
++ hg init
++ echo This is file a1
++ hg add a
++ hg commit -t 'commit #0' -d '0 0' -u user
++ ls
+a
++ echo This is file b1
++ hg add b
++ hg commit -t 'commit #1' -d '0 0' -u user
++ hg co 0
++ ls
+a