diff --git a/tests/test-merge8 b/tests/test-merge8
new file mode 100755
--- /dev/null
+++ b/tests/test-merge8
@@ -0,0 +1,19 @@
+#!/bin/sh
+
+# Test for changeset ba7c74081861
+# (update dirstate correctly for non-branchmerge updates)
+hg init a
+cd a
+echo a > a
+hg add a
+hg commit -m a
+cd ..
+hg clone a b
+cd a
+hg mv a b
+hg commit -m move
+echo b >> b
+hg commit -m b
+cd ../b
+hg pull ../a
+hg update
diff --git a/tests/test-merge8.out b/tests/test-merge8.out
new file mode 100644
--- /dev/null
+++ b/tests/test-merge8.out
@@ -0,0 +1,10 @@
+1 files updated, 0 files merged, 0 files removed, 0 files unresolved
+pulling from ../a
+searching for changes
+adding changesets
+adding manifests
+adding file changes
+added 2 changesets with 2 changes to 1 files
+(run 'hg update' to get a working copy)
+merging a and b
+0 files updated, 1 files merged, 0 files removed, 0 files unresolved