diff --git a/mercurial/commands.py b/mercurial/commands.py
--- a/mercurial/commands.py
+++ b/mercurial/commands.py
@@ -2418,11 +2418,17 @@ def serve(ui, repo, **opts):
 
             if not ui.verbose: return
 
+            if self.httpd.prefix:
+                prefix = self.httpd.prefix.strip('/') + '/'
+            else:
+                prefix = ''
+
             if self.httpd.port != 80:
-                ui.status(_('listening at http://%s:%d/\n') %
-                          (self.httpd.addr, self.httpd.port))
+                ui.status(_('listening at http://%s:%d/%s\n') %
+                          (self.httpd.addr, self.httpd.port, prefix))
             else:
-                ui.status(_('listening at http://%s/\n') % self.httpd.addr)
+                ui.status(_('listening at http://%s/%s\n') % 
+                          (self.httpd.addr, prefix))
 
         def run(self):
             self.httpd.serve_forever()
diff --git a/mercurial/hgweb/hgwebdir_mod.py b/mercurial/hgweb/hgwebdir_mod.py
--- a/mercurial/hgweb/hgwebdir_mod.py
+++ b/mercurial/hgweb/hgwebdir_mod.py
@@ -172,7 +172,7 @@ class hgwebdir(object):
                 if u.configbool("web", "hidden", untrusted=True):
                     continue
 
-                parts = [req.env['PATH_INFO'], name]
+                parts = [req.env['PATH_INFO'].strip('/'), name]
                 if req.env['SCRIPT_NAME']:
                     parts.insert(0, req.env['SCRIPT_NAME'])
                 url = ('/'.join(parts).replace("//", "/")) + '/'
diff --git a/mercurial/hgweb/server.py b/mercurial/hgweb/server.py
--- a/mercurial/hgweb/server.py
+++ b/mercurial/hgweb/server.py
@@ -206,7 +206,9 @@ def create_server(ui, repo):
         myui = repo.ui
     address = myui.config("web", "address", "")
     port = int(myui.config("web", "port", 8000))
-    prefix = myui.config("web", "prefix", "").rstrip("/")
+    prefix = myui.config("web", "prefix", "")
+    if prefix:
+        prefix = "/" + prefix.strip("/")
     use_ipv6 = myui.configbool("web", "ipv6")
     webdir_conf = myui.config("web", "webdir_conf")
     ssl_cert = myui.config("web", "certificate")