diff --git a/hgext/histedit.py b/hgext/histedit.py
--- a/hgext/histedit.py
+++ b/hgext/histedit.py
@@ -487,6 +487,7 @@ class histeditaction(object):
         repo.ui.pushbuffer(error=True, labeled=True)
         hg.update(repo, self.state.parentctxnode, quietempty=True)
         stats = applychanges(repo.ui, repo, rulectx, {})
+        repo.dirstate.setbranch(rulectx.branch())
         if stats and stats[3] > 0:
             buf = repo.ui.popbuffer()
             repo.ui.write(*buf)
diff --git a/tests/test-histedit-commute.t b/tests/test-histedit-commute.t
--- a/tests/test-histedit-commute.t
+++ b/tests/test-histedit-commute.t
@@ -454,3 +454,36 @@ Now, let's try to fold the second commit
   rename to another-dir/renamed-file
 
   $ cd ..
+
+Test that branches are preserved and stays active
+-------------------------------------------------
+
+  $ hg init repo-with-branch
+  $ cd repo-with-branch
+  $ echo a > a
+  $ hg add a
+  $ hg commit -m A
+  $ hg branch foo
+  marked working directory as branch foo
+  (branches are permanent and global, did you want a bookmark?)
+  $ echo a > b
+  $ hg add b
+  $ hg commit -m foo-B
+  $ echo a > c
+  $ hg add c
+  $ hg commit -m foo-C
+
+  $ hg branch
+  foo
+  $ echo "pick efefa76d6dc3 2 foo-C" >> cmd
+  $ echo "pick 7336e7550422 1 foo-B" >> cmd
+
+  $ HGEDITOR=cat hg histedit -r ".^" --commands cmd --quiet
+  $ hg log --template '{rev} {branch}\n'
+  2 foo
+  1 foo
+  0 default
+  $ hg branch
+  foo
+
+  $ cd ..