diff --git a/hgext/bookmarks.py b/hgext/bookmarks.py
--- a/hgext/bookmarks.py
+++ b/hgext/bookmarks.py
@@ -224,6 +224,7 @@ def reposetup(ui, repo):
             in the .hg/bookmarks file.
             Read the file and return a (name=>nodeid) dictionary
             '''
+            self._loadingbookmarks = True
             try:
                 bookmarks = {}
                 for line in self.opener('bookmarks'):
@@ -231,6 +232,7 @@ def reposetup(ui, repo):
                     bookmarks[refspec] = super(bookmark_repo, self).lookup(sha)
             except:
                 pass
+            self._loadingbookmarks = False
             return bookmarks
 
         @util.propertycache
@@ -257,8 +259,9 @@ def reposetup(ui, repo):
             return super(bookmark_repo, self).rollback(*args)
 
         def lookup(self, key):
-            if key in self._bookmarks:
-                key = self._bookmarks[key]
+            if not getattr(self, '_loadingbookmarks', False):
+                if key in self._bookmarks:
+                    key = self._bookmarks[key]
             return super(bookmark_repo, self).lookup(key)
 
         def _bookmarksupdate(self, parents, node):
@@ -357,7 +360,8 @@ def reposetup(ui, repo):
         def _findtags(self):
             """Merge bookmarks with normal tags"""
             (tags, tagtypes) = super(bookmark_repo, self)._findtags()
-            tags.update(self._bookmarks)
+            if not getattr(self, '_loadingbookmarks', False):
+                tags.update(self._bookmarks)
             return (tags, tagtypes)
 
         if hasattr(repo, 'invalidate'):
diff --git a/tests/test-bookmarks-strip b/tests/test-bookmarks-strip
--- a/tests/test-bookmarks-strip
+++ b/tests/test-bookmarks-strip
@@ -43,3 +43,18 @@ hg strip 1 | hidebackup
 echo % list bookmarks
 hg book
 
+echo '% test immediate rollback and reentrancy issue'
+echo "mq=!" >> $HGRCPATH
+hg init repo
+cd repo
+echo a > a
+hg ci -Am adda
+echo b > b
+hg ci -Am addb
+hg bookmarks markb
+hg rollback
+hg bookmarks
+hg bookmarks markb
+hg bookmarks
+cd ..
+
diff --git a/tests/test-bookmarks-strip.out b/tests/test-bookmarks-strip.out
--- a/tests/test-bookmarks-strip.out
+++ b/tests/test-bookmarks-strip.out
@@ -16,3 +16,9 @@ saved backup bundle to
 % list bookmarks
  * test                      1:9f1b7e78eff8
  * test2                     1:9f1b7e78eff8
+% test immediate rollback and reentrancy issue
+adding a
+adding b
+rolling back to revision 0 (undo commit)
+no bookmarks set
+ * markb                     0:07f494440405