diff --git a/mercurial/util.py b/mercurial/util.py
--- a/mercurial/util.py
+++ b/mercurial/util.py
@@ -363,6 +363,9 @@ def canonpath(root, cwd, myname):
             except OSError:
                 break
             if samestat(name_st, root_st):
+                if not rel:
+                    # name was actually the same as root (maybe a symlink)
+                    return ''
                 rel.reverse()
                 name = os.path.join(*rel)
                 audit_path(name)
diff --git a/tests/test-symlink-root b/tests/test-symlink-root
new file mode 100755
--- /dev/null
+++ b/tests/test-symlink-root
@@ -0,0 +1,8 @@
+#!/bin/sh
+
+hg init a
+ln -s a link
+cd a
+echo foo > foo
+hg status
+hg status ../link
diff --git a/tests/test-symlink-root.out b/tests/test-symlink-root.out
new file mode 100644
--- /dev/null
+++ b/tests/test-symlink-root.out
@@ -0,0 +1,2 @@
+? foo
+? foo