diff --git a/hgext/rebase.py b/hgext/rebase.py
--- a/hgext/rebase.py
+++ b/hgext/rebase.py
@@ -247,6 +247,9 @@ def rebase(ui, repo, **opts):
 
         # Keep track of the current bookmarks in order to reset them later
         currentbookmarks = repo._bookmarks.copy()
+        activebookmark = repo._bookmarkcurrent
+        if activebookmark:
+            bookmarks.unsetcurrent(repo)
 
         sortedstate = sorted(state)
         total = len(sortedstate)
@@ -336,6 +339,11 @@ def rebase(ui, repo, **opts):
             util.unlinkpath(repo.sjoin('undo'))
         if skipped:
             ui.note(_("%d revisions have been skipped\n") % len(skipped))
+
+        if (activebookmark and
+            repo['tip'].node() == repo._bookmarks[activebookmark]):
+                bookmarks.setcurrent(repo, activebookmark)
+
     finally:
         release(lock, wlock)
 
@@ -483,13 +491,11 @@ def updatemq(repo, state, skipped, **opt
 
 def updatebookmarks(repo, nstate, originalbookmarks, **opts):
     'Move bookmarks to their correct changesets'
-    current = repo._bookmarkcurrent
     for k, v in originalbookmarks.iteritems():
         if v in nstate:
             if nstate[v] != nullmerge:
-                # reset the pointer if the bookmark was moved incorrectly
-                if k != current:
-                    repo._bookmarks[k] = nstate[v]
+                # update the bookmarks for revs that have moved
+                repo._bookmarks[k] = nstate[v]
 
     bookmarks.write(repo)
 
diff --git a/tests/test-rebase-bookmarks.t b/tests/test-rebase-bookmarks.t
--- a/tests/test-rebase-bookmarks.t
+++ b/tests/test-rebase-bookmarks.t
@@ -36,8 +36,10 @@ Create a repo with several bookmarks
   adding d
   created new head
 
+  $ hg book W
+
   $ hg tglog 
-  @  3: 'D' bookmarks:
+  @  3: 'D' bookmarks: W
   |
   | o  2: 'C' bookmarks: Y Z
   | |
@@ -60,7 +62,7 @@ Move only rebased bookmarks
   $ hg tglog 
   @  3: 'C' bookmarks: Y Z
   |
-  o  2: 'D' bookmarks:
+  o  2: 'D' bookmarks: W
   |
   | o  1: 'B' bookmarks: X
   |/
@@ -82,7 +84,30 @@ Keep bookmarks to the correct rebased ch
   |
   o  2: 'B' bookmarks: X
   |
-  o  1: 'D' bookmarks:
+  o  1: 'D' bookmarks: W
   |
   o  0: 'A' bookmarks:
   
+
+Keep active bookmark on the correct changeset
+
+  $ cd ..
+  $ hg clone -q a a3
+
+  $ cd a3
+  $ hg up -q X
+
+  $ hg rebase -d W
+  saved backup bundle to $TESTTMP/a3/.hg/strip-backup/*-backup.hg (glob)
+
+  $ hg tglog
+  @  3: 'C' bookmarks: Y Z
+  |
+  o  2: 'B' bookmarks: X
+  |
+  o  1: 'D' bookmarks: W
+  |
+  o  0: 'A' bookmarks:
+  
+
+  $ cd ..