diff --git a/hgext/largefiles/overrides.py b/hgext/largefiles/overrides.py
--- a/hgext/largefiles/overrides.py
+++ b/hgext/largefiles/overrides.py
@@ -821,6 +821,14 @@ def hgclone(orig, ui, opts, *args, **kwa
         sourcerepo, destrepo = result
         repo = destrepo.local()
 
+        # If largefiles is required for this repo, permanently enable it locally
+        if 'largefiles' in repo.requirements:
+            fp = repo.vfs('hgrc', 'a', text=True)
+            try:
+                fp.write('\n[extensions]\nlargefiles=\n')
+            finally:
+                fp.close()
+
         # Caching is implicitly limited to 'rev' option, since the dest repo was
         # truncated at that point.  The user may expect a download count with
         # this option, so attempt whether or not this is a largefile repo.
diff --git a/tests/test-largefiles.t b/tests/test-largefiles.t
--- a/tests/test-largefiles.t
+++ b/tests/test-largefiles.t
@@ -1183,12 +1183,12 @@ rebased or not.
   adding manifests
   adding file changes
   added 1 changesets with 2 changes to 2 files (+1 heads)
-  0 largefiles cached
   rebasing 8:f574fb32bb45 "modify normal file largefile in repo d"
   Invoking status precommit hook
   M sub/normal4
   M sub2/large6
   saved backup bundle to $TESTTMP/d/.hg/strip-backup/f574fb32bb45-dd1d9f80-backup.hg (glob)
+  0 largefiles cached
   $ [ -f .hg/largefiles/e166e74c7303192238d60af5a9c4ce9bef0b7928 ]
   $ hg log --template '{rev}:{node|short}  {desc|firstline}\n'
   9:598410d3eb9a  modify normal file largefile in repo d
diff --git a/tests/test-subrepo-deep-nested-change.t b/tests/test-subrepo-deep-nested-change.t
--- a/tests/test-subrepo-deep-nested-change.t
+++ b/tests/test-subrepo-deep-nested-change.t
@@ -46,12 +46,29 @@ Cleaning both repositories, just as a cl
 
 Clone main
 
-  $ hg clone main cloned
+  $ hg --config extensions.largefiles= clone main cloned
   updating to branch default
   cloning subrepo sub1 from $TESTTMP/sub1
   cloning subrepo sub1/sub2 from $TESTTMP/sub2 (glob)
   3 files updated, 0 files merged, 0 files removed, 0 files unresolved
 
+Largefiles is NOT enabled in the clone if the source repo doesn't require it
+  $ cat cloned/.hg/hgrc
+  # example repository config (see "hg help config" for more info)
+  [paths]
+  default = $TESTTMP/main (glob)
+  
+  # path aliases to other clones of this repo in URLs or filesystem paths
+  # (see "hg help config.paths" for more info)
+  #
+  # default-push = ssh://jdoe@example.net/hg/jdoes-fork
+  # my-fork      = ssh://jdoe@example.net/hg/jdoes-fork
+  # my-clone     = /home/jdoe/jdoes-clone
+  
+  [ui]
+  # name and email (local to this repository, optional), e.g.
+  # username = Jane Doe <jdoe@example.com>
+
 Checking cloned repo ids
 
   $ printf "cloned " ; hg id -R cloned
@@ -319,6 +336,31 @@ Find an exact largefile match in a large
   ../archive_lf/sub1/sub2/large.bin
   $ rm -rf ../archive_lf
 
+The local repo enables largefiles if a largefiles repo is cloned
+  $ hg showconfig extensions
+  abort: repository requires features unknown to this Mercurial: largefiles!
+  (see http://mercurial.selenic.com/wiki/MissingRequirement for more information)
+  [255]
+  $ hg --config extensions.largefiles= clone -qU . ../lfclone
+  $ cat ../lfclone/.hg/hgrc
+  # example repository config (see "hg help config" for more info)
+  [paths]
+  default = $TESTTMP/cloned (glob)
+  
+  # path aliases to other clones of this repo in URLs or filesystem paths
+  # (see "hg help config.paths" for more info)
+  #
+  # default-push = ssh://jdoe@example.net/hg/jdoes-fork
+  # my-fork      = ssh://jdoe@example.net/hg/jdoes-fork
+  # my-clone     = /home/jdoe/jdoes-clone
+  
+  [ui]
+  # name and email (local to this repository, optional), e.g.
+  # username = Jane Doe <jdoe@example.com>
+  
+  [extensions]
+  largefiles=
+
 Find an exact match to a standin (should archive nothing)
   $ hg --config extensions.largefiles= archive -S -I 'sub/sub2/.hglf/large.bin' ../archive_lf
   $ find ../archive_lf 2> /dev/null | sort