diff --git a/mercurial/merge.py b/mercurial/merge.py
--- a/mercurial/merge.py
+++ b/mercurial/merge.py
@@ -1244,9 +1244,7 @@ def update(repo, node, branchmerge, forc
         wlock.release()
 
     if not partial:
-        def updatehook(parent1=xp1, parent2=xp2, error=stats[3]):
-            repo.hook('update', parent1=parent1, parent2=parent2, error=error)
-        repo._afterlock(updatehook)
+        repo.hook('update', parent1=xp1, parent2=xp2, error=stats[3])
     return stats
 
 def graft(repo, ctx, pctx, labels):
diff --git a/tests/test-backout.t b/tests/test-backout.t
--- a/tests/test-backout.t
+++ b/tests/test-backout.t
@@ -313,6 +313,41 @@ invocation of the hook to be examined)
   > preupdate.visibility =
   > EOF
 
+== test visibility to external update hook
+
+  $ hg update -q -C 2
+  $ hg --config extensions.strip= strip 3
+  saved backup bundle to * (glob)
+
+  $ cat >> .hg/hgrc <<EOF
+  > [hooks]
+  > update.visibility = sh $TESTTMP/checkvisibility.sh update
+  > EOF
+
+  $ hg backout --merge -d '3 0' 1 --tool=true -m 'fixed comment'
+  ==== update:
+  1:5a50a024c182
+  ====
+  reverting a
+  created new head
+  changeset 3:d92a3f57f067 backs out changeset 1:5a50a024c182
+  ==== update:
+  2:6ea3f2a197a2
+  ====
+  merging with changeset 3:d92a3f57f067
+  merging a
+  ==== update:
+  2:6ea3f2a197a2
+  3:d92a3f57f067
+  ====
+  0 files updated, 1 files merged, 0 files removed, 0 files unresolved
+  (branch merge, don't forget to commit)
+
+  $ cat >> .hg/hgrc <<EOF
+  > [hooks]
+  > update.visibility =
+  > EOF
+
   $ cd ..
 
 backout should not back out subsequent changesets
diff --git a/tests/test-blackbox.t b/tests/test-blackbox.t
--- a/tests/test-blackbox.t
+++ b/tests/test-blackbox.t
@@ -119,8 +119,8 @@ extension and python hooks - use the eol
   $ echo '[hooks]' >> .hg/hgrc
   $ echo 'update = echo hooked' >> .hg/hgrc
   $ hg update
+  hooked
   1 files updated, 0 files merged, 0 files removed, 0 files unresolved
-  hooked
   $ hg blackbox -l 5
   1970/01/01 00:00:00 bob (*)> update (glob)
   1970/01/01 00:00:00 bob (*)> writing .hg/cache/tags2-visible with 0 tags (glob)
diff --git a/tests/test-hook.t b/tests/test-hook.t
--- a/tests/test-hook.t
+++ b/tests/test-hook.t
@@ -223,8 +223,8 @@ update hook
   $ echo "update = printenv.py update" >> .hg/hgrc
   $ hg update
   preupdate hook: HG_PARENT1=539e4b31b6dc
+  update hook: HG_ERROR=0 HG_PARENT1=539e4b31b6dc
   2 files updated, 0 files merged, 0 files removed, 0 files unresolved
-  update hook: HG_ERROR=0 HG_PARENT1=539e4b31b6dc
 
 pushkey hook
 
@@ -644,8 +644,8 @@ final release (and dirstate flush).
   $ hg ci -ma
   223eafe2750c tip
   $ hg up 0 --config extensions.largefiles=
+  cb9a9f314b8b
   1 files updated, 0 files merged, 0 files removed, 0 files unresolved
-  cb9a9f314b8b
 
 make sure --verbose (and --quiet/--debug etc.) are propagated to the local ui
 that is passed to pre/post hooks
diff --git a/tests/test-shelve.t b/tests/test-shelve.t
--- a/tests/test-shelve.t
+++ b/tests/test-shelve.t
@@ -1087,6 +1087,52 @@ Test visibility of in-memory changes ins
   ACTUAL  5:703117a2acfb
   ====
 
+== test visibility to external update hook
+
+  $ hg update -q -C 5
+
+  $ cat >> .hg/hgrc <<EOF
+  > [hooks]
+  > update.visibility = sh $TESTTMP/checkvisibility.sh update
+  > EOF
+
+  $ echo nnnn >> n
+
+  $ sh $TESTTMP/checkvisibility.sh before-unshelving
+  ==== before-unshelving:
+  VISIBLE 5:703117a2acfb
+  ACTUAL  5:703117a2acfb
+  ====
+
+  $ hg unshelve --keep default
+  temporarily committing pending changes (restore with 'hg unshelve --abort')
+  rebasing shelved changes
+  rebasing 7:fcbb97608399 "changes to 'create conflict'" (tip)
+  ==== update:
+  VISIBLE 6:66b86db80ee4
+  VISIBLE 7:fcbb97608399
+  ACTUAL  5:703117a2acfb
+  ====
+  ==== update:
+  VISIBLE 6:66b86db80ee4
+  ACTUAL  5:703117a2acfb
+  ====
+  ==== update:
+  VISIBLE 5:703117a2acfb
+  ACTUAL  5:703117a2acfb
+  ====
+
+  $ cat >> .hg/hgrc <<EOF
+  > [hooks]
+  > update.visibility =
+  > EOF
+
+  $ sh $TESTTMP/checkvisibility.sh after-unshelving
+  ==== after-unshelving:
+  VISIBLE 5:703117a2acfb
+  ACTUAL  5:703117a2acfb
+  ====
+
   $ cd ..
 
 test Abort unshelve always gets user out of the unshelved state