diff --git a/tests/test-bundle b/tests/test-bundle
--- a/tests/test-bundle
+++ b/tests/test-bundle
@@ -59,3 +59,22 @@ hg incoming bundle://../full.hg
 hg -R bundle://../full.hg outgoing ../partial2
 hg -R bundle://../does-not-exist.hg outgoing ../partial2
 cd ..
+
+# test for 540d1059c802
+hg init orig
+cd orig
+echo foo > foo
+hg add foo
+hg ci -m 'add foo' -d '0 0'
+
+hg clone . ../copy
+hg tag -d '0 0' foo
+
+cd ../copy
+echo >> foo
+hg ci -m 'change foo' -d '0 0'
+hg bundle ../bundle.hg ../orig
+
+cd ../orig
+hg incoming ../bundle.hg
+cd ..
diff --git a/tests/test-bundle.out b/tests/test-bundle.out
--- a/tests/test-bundle.out
+++ b/tests/test-bundle.out
@@ -209,3 +209,13 @@ date:        Mon Jan 12 13:46:40 1970 +0
 summary:     0.3m
 
 abort: No such file or directory: ../does-not-exist.hg
+1 files updated, 0 files merged, 0 files removed, 0 files unresolved
+searching for changes
+searching for changes
+changeset:   2:ed1b79f46b9a
+tag:         tip
+parent:      0:bbd179dfa0a7
+user:        test
+date:        Thu Jan 01 00:00:00 1970 +0000
+summary:     change foo
+