diff --git a/mercurial/commands.py b/mercurial/commands.py
--- a/mercurial/commands.py
+++ b/mercurial/commands.py
@@ -436,16 +436,19 @@ def branch(ui, repo, label=None, **opts)
     else:
         ui.write("%s\n" % encoding.tolocal(repo.dirstate.branch()))
 
-def branches(ui, repo, active=False):
+def branches(ui, repo, active=False, closed=False):
     """list repository named branches
 
     List the repository's named branches, indicating which ones are
-    inactive. If -a/--active is specified, only show active branches.
-
-    A branch is considered active if it contains repository heads.
+    inactive. If -c/--closed is specified, also list branches which have
+    been marked closed (see hg commit --close-branch).
+
+    If -a/--active is specified, only show active branches. A branch
+    is considered active if it contains repository heads.
 
     Use the command 'hg update' to switch to an existing branch.
     """
+
     hexfunc = ui.debugflag and hex or short
     activebranches = [encoding.tolocal(repo[n].branch())
                             for n in repo.heads()]
@@ -466,6 +469,8 @@ def branches(ui, repo, active=False):
                 if isactive:
                     notice = ''
                 elif hn not in repo.branchheads(tag, closed=False):
+                    if not closed:
+                        continue
                     notice = ' (closed)'
                 else:
                     notice = ' (inactive)'
@@ -3205,7 +3210,9 @@ table = {
     "branches":
         (branches,
          [('a', 'active', False,
-           _('show only branches that have unmerged heads'))],
+           _('show only branches that have unmerged heads')),
+          ('c', 'closed', False,
+           _('show normal and closed heads'))],
          _('[-a]')),
     "bundle":
         (bundle,
diff --git a/tests/test-branches b/tests/test-branches
--- a/tests/test-branches
+++ b/tests/test-branches
@@ -70,6 +70,7 @@ hg up -C b
 hg commit -d '9 0' --close-branch -m 'close this part branch too'
 echo '--- b branch should be inactive'
 hg branches
+hg branches -c
 hg branches -a
 hg heads b
 hg heads --closed b
diff --git a/tests/test-branches.out b/tests/test-branches.out
--- a/tests/test-branches.out
+++ b/tests/test-branches.out
@@ -108,6 +108,10 @@ a branch name much longer than the defau
 1 files updated, 0 files merged, 0 files removed, 0 files unresolved
 --- b branch should be inactive
 a branch name much longer than the default justification used by branches 7:10ff5895aa57
+c                              6:589736a22561 (inactive)
+a                              5:d8cbc61dbaa6 (inactive)
+default                        0:19709c5a4e75 (inactive)
+a branch name much longer than the default justification used by branches 7:10ff5895aa57
 b                             12:2da6583810df (closed)
 c                              6:589736a22561 (inactive)
 a                              5:d8cbc61dbaa6 (inactive)
diff --git a/tests/test-debugcomplete.out b/tests/test-debugcomplete.out
--- a/tests/test-debugcomplete.out
+++ b/tests/test-debugcomplete.out
@@ -184,7 +184,7 @@ archive: no-decode, prefix, rev, type, i
 backout: merge, parent, rev, include, exclude, message, logfile, date, user
 bisect: reset, good, bad, skip, command, noupdate
 branch: force, clean
-branches: active
+branches: active, closed
 bundle: force, rev, base, all, type, ssh, remotecmd
 cat: output, rev, decode, include, exclude
 copy: after, force, include, exclude, dry-run