diff --git a/mercurial/copies.py b/mercurial/copies.py
--- a/mercurial/copies.py
+++ b/mercurial/copies.py
@@ -564,9 +564,8 @@ def _checkcopies(ctx, f, m1, m2, base, t
     # traversed backwards.
     #
     # In the case there is both backward and forward renames (before and after
-    # the base) this is more complicated as we must detect a divergence. This
-    # is currently broken and hopefully some later code update will make that
-    # work (we use 'backwards = False' in that case)
+    # the base) this is more complicated as we must detect a divergence.
+    # We use 'backwards = False' in that case.
     backwards = base != tca and f in mb
     getfctx = _makegetfctx(ctx)
 
@@ -600,6 +599,12 @@ def _checkcopies(ctx, f, m1, m2, base, t
                 data['copy'][of] = f
             elif of in mb:
                 data['copy'][f] = of
+            else: # divergence w.r.t. graft CA on one side of topological CA
+                for sf in seen:
+                    if sf in mb:
+                        assert sf not in data['diverge']
+                        data['diverge'][sf] = [f, of]
+                        break
             return
 
     if of in mb:
diff --git a/tests/test-graft.t b/tests/test-graft.t
--- a/tests/test-graft.t
+++ b/tests/test-graft.t
@@ -982,6 +982,9 @@ Test the cases A.0 (f4x) and A.6 (f3x)
 
   $ HGEDITOR="echo D1 >" hg graft -r 'desc("D0")' --edit
   grafting 3:b69f5839d2d9 "D0"
+  note: possible conflict - f3b was renamed multiple times to:
+   f3d
+   f3a
   warning: can't find ancestor for 'f3d' copied from 'f3b'!
 
 Set up the repository for some further tests