diff --git a/mercurial/hg.py b/mercurial/hg.py
--- a/mercurial/hg.py
+++ b/mercurial/hg.py
@@ -9,7 +9,7 @@
 from i18n import _
 from lock import release
 from node import hex, nullid, nullrev, short
-import localrepo, bundlerepo, httprepo, sshrepo, statichttprepo
+import localrepo, bundlerepo, httprepo, sshrepo, statichttprepo, bookmarks
 import lock, util, extensions, error, encoding, node
 import cmdutil, discovery, url
 import merge as mergemod
@@ -366,6 +366,21 @@ def clone(ui, source, dest=None, pull=Fa
                 dest_repo.ui.status(_("updating to branch %s\n") % bn)
                 _update(dest_repo, uprev)
 
+        # clone all bookmarks
+        if dest_repo.local() and src_repo.capable("pushkey"):
+            rb = src_repo.listkeys('bookmarks')
+            for k, n in rb.iteritems():
+                try:
+                    m = dest_repo.lookup(n)
+                    dest_repo._bookmarks[k] = m
+                except:
+                    pass
+            if rb:
+                bookmarks.write(dest_repo)
+        elif src_repo.local() and dest_repo.capable("pushkey"):
+            for k, n in src_repo._bookmarks.iteritems():
+                dest_repo.pushkey('bookmarks', k, '', hex(n))
+
         return src_repo, dest_repo
     finally:
         release(src_lock, dest_lock)
diff --git a/tests/test-bookmarks-pushpull.t b/tests/test-bookmarks-pushpull.t
--- a/tests/test-bookmarks-pushpull.t
+++ b/tests/test-bookmarks-pushpull.t
@@ -176,5 +176,19 @@ hgweb
   no changes found
   not updating divergent bookmark X
   importing bookmark Z
+  $ hg clone http://localhost:$HGPORT/ cloned-bookmarks
+  requesting all changes
+  adding changesets
+  adding manifests
+  adding file changes
+  added 3 changesets with 3 changes to 3 files (+1 heads)
+  updating to branch default
+  2 files updated, 0 files merged, 0 files removed, 0 files unresolved
+  $ hg -R cloned-bookmarks bookmarks
+     X                         1:9b140be10808
+     Y                         0:4e3505fd9583
+     Z                         2:0d2164f0ce0d
+     foo                       -1:000000000000
+     foobar                    -1:000000000000
 
   $ kill `cat ../hg.pid`
diff --git a/tests/test-bookmarks.t b/tests/test-bookmarks.t
--- a/tests/test-bookmarks.t
+++ b/tests/test-bookmarks.t
@@ -244,3 +244,47 @@ test id
 
   $ hg id
   db815d6d32e6 tip Y/Z/x  y
+
+test clone
+
+  $ hg bookmarks
+     X2                        1:925d80f479bb
+     Y                         2:db815d6d32e6
+   * Z                         2:db815d6d32e6
+     x  y                      2:db815d6d32e6
+  $ hg clone . cloned-bookmarks
+  updating to branch default
+  2 files updated, 0 files merged, 0 files removed, 0 files unresolved
+  $ hg -R cloned-bookmarks bookmarks
+     X2                        1:925d80f479bb
+     Y                         2:db815d6d32e6
+     Z                         2:db815d6d32e6
+     x  y                      2:db815d6d32e6
+
+test clone with pull protocol
+
+  $ hg clone --pull . cloned-bookmarks-pull
+  requesting all changes
+  adding changesets
+  adding manifests
+  adding file changes
+  added 3 changesets with 3 changes to 3 files (+1 heads)
+  updating to branch default
+  2 files updated, 0 files merged, 0 files removed, 0 files unresolved
+  $ hg -R cloned-bookmarks-pull bookmarks
+     X2                        1:925d80f479bb
+     Y                         2:db815d6d32e6
+     Z                         2:db815d6d32e6
+     x  y                      2:db815d6d32e6
+
+test clone with a specific revision
+
+  $ hg clone -r 925d80 . cloned-bookmarks-rev
+  adding changesets
+  adding manifests
+  adding file changes
+  added 2 changesets with 2 changes to 2 files
+  updating to branch default
+  2 files updated, 0 files merged, 0 files removed, 0 files unresolved
+  $ hg -R cloned-bookmarks-rev bookmarks
+     X2                        1:925d80f479bb
diff --git a/tests/test-init.t b/tests/test-init.t
--- a/tests/test-init.t
+++ b/tests/test-init.t
@@ -199,3 +199,17 @@ verify that clone also expand urls
   store
   fncache
   dotencode
+
+clone bookmarks
+
+  $ hg -R local bookmark test
+  $ hg -R local bookmarks
+   * test                      0:08b9e9f63b32
+  $ hg clone -e "python ./dummyssh" local ssh://user@dummy/remote-bookmarks
+  searching for changes
+  remote: adding changesets
+  remote: adding manifests
+  remote: adding file changes
+  remote: added 1 changesets with 1 changes to 1 files
+  $ hg -R remote-bookmarks bookmarks
+     test                      0:08b9e9f63b32
diff --git a/tests/test-ssh.t b/tests/test-ssh.t
--- a/tests/test-ssh.t
+++ b/tests/test-ssh.t
@@ -263,6 +263,22 @@ push should succeed even though it has a
   summary:     z
   
 
+clone bookmarks
+
+  $ hg -R ../remote bookmark test
+  $ hg -R ../remote bookmarks
+   * test                      2:6c0482d977a3
+  $ hg clone -e "python ../dummyssh" ssh://user@dummy/remote local-bookmarks
+  requesting all changes
+  adding changesets
+  adding manifests
+  adding file changes
+  added 4 changesets with 5 changes to 4 files (+1 heads)
+  updating to branch default
+  3 files updated, 0 files merged, 0 files removed, 0 files unresolved
+  $ hg -R local-bookmarks bookmarks
+     test                      2:6c0482d977a3
+
 passwords in ssh urls are not supported
 
   $ hg push ssh://user:erroneouspwd@dummy/remote
@@ -289,3 +305,4 @@ passwords in ssh urls are not supported
   Got arguments 1:user@dummy 2:hg -R remote serve --stdio
   Got arguments 1:user@dummy 2:hg -R remote serve --stdio
   Got arguments 1:user@dummy 2:hg -R remote serve --stdio
+  Got arguments 1:user@dummy 2:hg -R remote serve --stdio