diff --git a/hgext/convert/hg.py b/hgext/convert/hg.py
--- a/hgext/convert/hg.py
+++ b/hgext/convert/hg.py
@@ -50,7 +50,7 @@ class mercurial_sink(converter_sink):
     def putfile(self, f, e, data):
         self.repo.wwrite(f, data, e)
         if f not in self.repo.dirstate:
-            self.repo.dirstate.add(f)
+            self.repo.dirstate.normallookup(f)
 
     def copyfile(self, source, dest):
         self.repo.copy(source, dest)
@@ -111,7 +111,7 @@ class mercurial_sink(converter_sink):
             p2 = parents.pop(0)
             a = self.repo.rawcommit(files, text, commit.author, commit.date,
                                     bin(p1), bin(p2), extra=extra)
-            self.repo.dirstate.invalidate()
+            self.repo.dirstate.clear()
             text = "(octopus merge fixup)\n"
             p2 = hg.hex(self.repo.changelog.tip())
 
diff --git a/tests/test-convert-hg-sink b/tests/test-convert-hg-sink
new file mode 100755
--- /dev/null
+++ b/tests/test-convert-hg-sink
@@ -0,0 +1,27 @@
+#!/bin/sh
+
+echo "[extensions]" >> $HGRCPATH
+echo "hgext.convert=" >> $HGRCPATH
+
+hg init orig
+cd orig
+echo foo > foo
+echo bar > bar
+hg ci -qAm 'add foo and bar' -d '0 0'
+
+hg rm foo
+hg ci -m 'remove foo' -d '0 0'
+
+mkdir foo
+echo file > foo/file
+hg ci -qAm 'add foo/file' -d '0 0'
+
+hg tag -d '0 0' some-tag
+
+hg log
+cd ..
+
+hg convert orig new 2>&1 | grep -v 'subversion python bindings could not be loaded'
+cd new
+hg out ../orig
+true
diff --git a/tests/test-convert-hg-sink.out b/tests/test-convert-hg-sink.out
new file mode 100644
--- /dev/null
+++ b/tests/test-convert-hg-sink.out
@@ -0,0 +1,33 @@
+changeset:   3:593cbf6fb2b4
+tag:         tip
+user:        test
+date:        Thu Jan 01 00:00:00 1970 +0000
+summary:     Added tag some-tag for changeset ad681a868e44
+
+changeset:   2:ad681a868e44
+tag:         some-tag
+user:        test
+date:        Thu Jan 01 00:00:00 1970 +0000
+summary:     add foo/file
+
+changeset:   1:cbba8ecc03b7
+user:        test
+date:        Thu Jan 01 00:00:00 1970 +0000
+summary:     remove foo
+
+changeset:   0:327daa9251fa
+user:        test
+date:        Thu Jan 01 00:00:00 1970 +0000
+summary:     add foo and bar
+
+initializing destination new repository
+scanning source...
+sorting...
+converting...
+3 add foo and bar
+2 remove foo
+1 add foo/file
+0 Added tag some-tag for changeset ad681a868e44
+comparing with ../orig
+searching for changes
+no changes found