diff --git a/mercurial/commands.py b/mercurial/commands.py
--- a/mercurial/commands.py
+++ b/mercurial/commands.py
@@ -5542,8 +5542,10 @@ def postincoming(ui, repo, modheads, opt
             msg = _("not updating: %s") % str(inst)
             hint = inst.hint
             raise error.UpdateAbort(msg, hint=hint)
-        if not ret and not checkout:
-            if bookmarks.update(repo, [movemarkfrom], repo['.'].node()):
+        if not ret and movemarkfrom:
+            if movemarkfrom == repo['.'].node():
+                pass # no-op update
+            elif bookmarks.update(repo, [movemarkfrom], repo['.'].node()):
                 ui.status(_("updating bookmark %s\n") % repo._activebookmark)
         return ret
     if modheads > 1:
diff --git a/tests/test-bookmarks.t b/tests/test-bookmarks.t
--- a/tests/test-bookmarks.t
+++ b/tests/test-bookmarks.t
@@ -781,3 +781,61 @@ test clearing only a single divergent bo
      foo@2                     2:db815d6d32e6
      four                      3:9ba5f110a0b3
      should-end-on-two         2:db815d6d32e6
+
+pull --update works the same as pull && update (case #2)
+
+It is assumed that "hg pull" itself doesn't update current active
+bookmark ('Y' in tests below).
+
+  $ hg pull -q ../cloned-bookmarks-update
+  divergent bookmark Z stored as Z@2
+
+(pulling revision on another named branch with --update updates
+neither the working directory nor current active bookmark: "no-op"
+case)
+
+  $ echo yy >> y
+  $ hg commit -m yy
+
+  $ hg -R ../cloned-bookmarks-update bookmarks | grep ' Y '
+   * Y                         3:125c9a1d6df6
+  $ hg -R ../cloned-bookmarks-update pull . --update
+  pulling from .
+  searching for changes
+  adding changesets
+  adding manifests
+  adding file changes
+  added 1 changesets with 1 changes to 1 files
+  divergent bookmark Z stored as Z@default
+  adding remote bookmark foo
+  adding remote bookmark four
+  adding remote bookmark should-end-on-two
+  0 files updated, 0 files merged, 0 files removed, 0 files unresolved
+  $ hg -R ../cloned-bookmarks-update parents -T "{rev}:{node|short}\n"
+  3:125c9a1d6df6
+  $ hg -R ../cloned-bookmarks-update bookmarks | grep ' Y '
+   * Y                         3:125c9a1d6df6
+
+(pulling revision on current named/topological branch with --update
+updates the working directory and current active bookmark)
+
+  $ hg update -C -q 125c9a1d6df6
+  $ echo xx >> x
+  $ hg commit -m xx
+
+  $ hg -R ../cloned-bookmarks-update bookmarks | grep ' Y '
+   * Y                         3:125c9a1d6df6
+  $ hg -R ../cloned-bookmarks-update pull . --update
+  pulling from .
+  searching for changes
+  adding changesets
+  adding manifests
+  adding file changes
+  added 1 changesets with 1 changes to 1 files
+  divergent bookmark Z stored as Z@default
+  1 files updated, 0 files merged, 0 files removed, 0 files unresolved
+  updating bookmark Y
+  $ hg -R ../cloned-bookmarks-update parents -T "{rev}:{node|short}\n"
+  6:81dcce76aa0b
+  $ hg -R ../cloned-bookmarks-update bookmarks | grep ' Y '
+   * Y                         6:81dcce76aa0b