diff --git a/hgext/rebase.py b/hgext/rebase.py
--- a/hgext/rebase.py
+++ b/hgext/rebase.py
@@ -15,7 +15,7 @@ http://mercurial.selenic.com/wiki/Rebase
 '''
 
 from mercurial import hg, util, repair, merge, cmdutil, commands, bookmarks
-from mercurial import extensions, patch, scmutil, phases
+from mercurial import extensions, patch, scmutil, phases, obsolete
 from mercurial.commands import templateopts
 from mercurial.node import nullrev
 from mercurial.lock import release
@@ -658,14 +658,22 @@ def buildstate(repo, dest, rebaseset, co
 
 def clearrebased(ui, repo, state):
     """dispose of rebased revision at the end of the rebase"""
-    rebased = [rev for rev in state if state[rev] != nullmerge]
-    if rebased:
-        if set(repo.changelog.descendants([min(rebased)])) - set(state):
-            ui.warn(_("warning: new changesets detected "
-                      "on source branch, not stripping\n"))
-        else:
-            # backup the old csets by default
-            repair.strip(ui, repo, repo[min(rebased)].node(), "all")
+    if obsolete._enabled:
+        markers = []
+        for rev, newrev in sorted(state.items()):
+            if newrev >= 0:
+                markers.append((repo[rev], (repo[newrev],)))
+        if markers:
+            obsolete.createmarkers(repo, markers)
+    else:
+        rebased = [rev for rev in state if state[rev] != nullmerge]
+        if rebased:
+            if set(repo.changelog.descendants([min(rebased)])) - set(state):
+                ui.warn(_("warning: new changesets detected "
+                          "on source branch, not stripping\n"))
+            else:
+                # backup the old csets by default
+                repair.strip(ui, repo, repo[min(rebased)].node(), "all")
 
 
 def pullrebase(orig, ui, repo, *args, **opts):
diff --git a/tests/test-rebase-obsolete.t b/tests/test-rebase-obsolete.t
new file mode 100644
--- /dev/null
+++ b/tests/test-rebase-obsolete.t
@@ -0,0 +1,175 @@
+==========================
+Test rebase with obsolete
+==========================
+
+Enable obsolete
+
+  $ cat > ${TESTTMP}/obs.py << EOF
+  > import mercurial.obsolete
+  > mercurial.obsolete._enabled = True
+  > EOF
+  $ cat >> $HGRCPATH << EOF
+  > [ui]
+  > logtemplate= {rev}:{node|short} {desc|firstline}
+  > [phases]
+  > publish=False
+  > [extensions]'
+  > rebase=
+  > 
+  > obs=${TESTTMP}/obs.py
+  > EOF
+
+Setup rebase canonical repo
+
+  $ hg init base
+  $ cd base
+  $ hg unbundle "$TESTDIR/bundles/rebase.hg"
+  adding changesets
+  adding manifests
+  adding file changes
+  added 8 changesets with 7 changes to 7 files (+2 heads)
+  (run 'hg heads' to see heads, 'hg merge' to merge)
+  $ hg up tip
+  3 files updated, 0 files merged, 0 files removed, 0 files unresolved
+  $ hg log -G
+  @  7:02de42196ebe H
+  |
+  | o  6:eea13746799a G
+  |/|
+  o |  5:24b6387c8c8c F
+  | |
+  | o  4:9520eea781bc E
+  |/
+  | o  3:32af7686d403 D
+  | |
+  | o  2:5fddd98957c8 C
+  | |
+  | o  1:42ccdea3bb16 B
+  |/
+  o  0:cd010b8cd998 A
+  
+  $ cd ..
+
+simple rebase
+---------------------------------
+
+  $ hg clone base simple
+  updating to branch default
+  3 files updated, 0 files merged, 0 files removed, 0 files unresolved
+  $ cd simple
+  $ hg up 32af7686d403
+  3 files updated, 0 files merged, 2 files removed, 0 files unresolved
+  $ hg rebase -d eea13746799a
+  $ hg log -G
+  @  10:8eeb3c33ad33 D
+  |
+  o  9:2327fea05063 C
+  |
+  o  8:e4e5be0395b2 B
+  |
+  | o  7:02de42196ebe H
+  | |
+  o |  6:eea13746799a G
+  |\|
+  | o  5:24b6387c8c8c F
+  | |
+  o |  4:9520eea781bc E
+  |/
+  o  0:cd010b8cd998 A
+  
+  $ hg log --hidden -G
+  @  10:8eeb3c33ad33 D
+  |
+  o  9:2327fea05063 C
+  |
+  o  8:e4e5be0395b2 B
+  |
+  | o  7:02de42196ebe H
+  | |
+  o |  6:eea13746799a G
+  |\|
+  | o  5:24b6387c8c8c F
+  | |
+  o |  4:9520eea781bc E
+  |/
+  | x  3:32af7686d403 D
+  | |
+  | x  2:5fddd98957c8 C
+  | |
+  | x  1:42ccdea3bb16 B
+  |/
+  o  0:cd010b8cd998 A
+  
+  $ hg debugobsolete
+  42ccdea3bb16d28e1848c95fe2e44c000f3f21b1 e4e5be0395b2cbd471ed22a26b1b6a1a0658a794 0 {'date': '*', 'user': 'test'} (glob)
+  5fddd98957c8a54a4d436dfe1da9d87f21a1b97b 2327fea05063f39961b14cb69435a9898dc9a245 0 {'date': '*', 'user': 'test'} (glob)
+  32af7686d403cf45b5d95f2d70cebea587ac806a 8eeb3c33ad33d452c89e5dcf611c347f978fb42b 0 {'date': '*', 'user': 'test'} (glob)
+
+
+  $ cd ..
+
+empty changeset
+---------------------------------
+
+  $ hg clone base empty
+  updating to branch default
+  3 files updated, 0 files merged, 0 files removed, 0 files unresolved
+  $ cd empty
+  $ hg up eea13746799a
+  1 files updated, 0 files merged, 1 files removed, 0 files unresolved
+
+We make a copy of both the first changeset in the rebased and some other in the
+set.
+
+  $ hg graft 42ccdea3bb16 32af7686d403
+  grafting revision 1
+  grafting revision 3
+  $ hg rebase  -s 42ccdea3bb16 -d .
+  $ hg log -G
+  @  10:5ae4c968c6ac C
+  |
+  o  9:08483444fef9 D
+  |
+  o  8:8877864f1edb B
+  |
+  | o  7:02de42196ebe H
+  | |
+  o |  6:eea13746799a G
+  |\|
+  | o  5:24b6387c8c8c F
+  | |
+  o |  4:9520eea781bc E
+  |/
+  o  0:cd010b8cd998 A
+  
+  $ hg log --hidden -G
+  @  10:5ae4c968c6ac C
+  |
+  o  9:08483444fef9 D
+  |
+  o  8:8877864f1edb B
+  |
+  | o  7:02de42196ebe H
+  | |
+  o |  6:eea13746799a G
+  |\|
+  | o  5:24b6387c8c8c F
+  | |
+  o |  4:9520eea781bc E
+  |/
+  | x  3:32af7686d403 D
+  | |
+  | x  2:5fddd98957c8 C
+  | |
+  | x  1:42ccdea3bb16 B
+  |/
+  o  0:cd010b8cd998 A
+  
+  $ hg debugobsolete
+  42ccdea3bb16d28e1848c95fe2e44c000f3f21b1 08483444fef91d6224f6655ee586a65d263ad34c 0 {'date': '*', 'user': 'test'} (glob)
+  5fddd98957c8a54a4d436dfe1da9d87f21a1b97b 5ae4c968c6aca831df823664e706c9d4aa34473d 0 {'date': '*', 'user': 'test'} (glob)
+  32af7686d403cf45b5d95f2d70cebea587ac806a 5ae4c968c6aca831df823664e706c9d4aa34473d 0 {'date': '*', 'user': 'test'} (glob)
+
+
+  $ cd ..
+