diff --git a/hgext/largefiles/overrides.py b/hgext/largefiles/overrides.py
--- a/hgext/largefiles/overrides.py
+++ b/hgext/largefiles/overrides.py
@@ -11,11 +11,10 @@
 import os
 import copy
 
-from mercurial import hg, commands, util, cmdutil, scmutil, match as match_, \
+from mercurial import hg, util, cmdutil, scmutil, match as match_, \
         archival, pathutil, revset
 from mercurial.i18n import _
 from mercurial.node import hex
-from hgext import rebase
 
 import lfutil
 import lfcommands
@@ -710,37 +709,14 @@ def overriderevert(orig, ui, repo, *pats
     finally:
         wlock.release()
 
-# When we rebase a repository with remotely changed largefiles, we need to
-# take some extra care so that the largefiles are correctly updated in the
-# working copy
+# after pulling changesets, we need to take some extra care to get
+# largefiles updated remotely
 def overridepull(orig, ui, repo, source=None, **opts):
     revsprepull = len(repo)
     if not source:
         source = 'default'
     repo.lfpullsource = source
-    if opts.get('rebase', False):
-        repo._isrebasing = True
-        try:
-            if opts.get('update'):
-                del opts['update']
-                ui.debug('--update and --rebase are not compatible, ignoring '
-                         'the update flag\n')
-            del opts['rebase']
-            origpostincoming = commands.postincoming
-            def _dummy(*args, **kwargs):
-                pass
-            commands.postincoming = _dummy
-            try:
-                result = commands.pull(ui, repo, source, **opts)
-            finally:
-                commands.postincoming = origpostincoming
-            revspostpull = len(repo)
-            if revspostpull > revsprepull:
-                result = result or rebase.rebase(ui, repo)
-        finally:
-            repo._isrebasing = False
-    else:
-        result = orig(ui, repo, source, **opts)
+    result = orig(ui, repo, source, **opts)
     revspostpull = len(repo)
     lfrevs = opts.get('lfrev', [])
     if opts.get('all_largefiles'):
diff --git a/tests/test-largefiles-misc.t b/tests/test-largefiles-misc.t
--- a/tests/test-largefiles-misc.t
+++ b/tests/test-largefiles-misc.t
@@ -832,4 +832,33 @@ locally (issue4109)
   $ cd ..
 
 
+Test "pull --rebase" when rebase is enabled before largefiles (issue3861)
+=========================================================================
 
+  $ hg showconfig extensions | grep largefiles
+  extensions.largefiles=!
+
+  $ mkdir issue3861
+  $ cd issue3861
+  $ hg init src
+  $ hg clone -q src dst
+  $ echo a > src/a
+  $ hg -R src commit -Aqm "#0"
+  Invoking status precommit hook
+  A a
+
+  $ cat >> dst/.hg/hgrc <<EOF
+  > [extensions]
+  > largefiles=
+  > EOF
+  $ hg -R dst pull --rebase
+  pulling from $TESTTMP/issue3861/src (glob)
+  requesting all changes
+  adding changesets
+  adding manifests
+  adding file changes
+  added 1 changesets with 1 changes to 1 files
+  nothing to rebase - working directory parent is already an ancestor of destination bf5e395ced2c
+  1 files updated, 0 files merged, 0 files removed, 0 files unresolved
+
+  $ cd ..
diff --git a/tests/test-largefiles.t b/tests/test-largefiles.t
--- a/tests/test-largefiles.t
+++ b/tests/test-largefiles.t
@@ -1172,12 +1172,11 @@ rebased or not.
   adding manifests
   adding file changes
   added 1 changesets with 2 changes to 2 files (+1 heads)
+  0 largefiles cached
   Invoking status precommit hook
   M sub/normal4
   M sub2/large6
   saved backup bundle to $TESTTMP/d/.hg/strip-backup/f574fb32bb45-backup.hg (glob)
-  0 largefiles cached
-  nothing to rebase - working directory parent is also destination
   $ [ -f .hg/largefiles/e166e74c7303192238d60af5a9c4ce9bef0b7928 ]
   $ hg log --template '{rev}:{node|short}  {desc|firstline}\n'
   9:598410d3eb9a  modify normal file largefile in repo d