diff --git a/hgext/convert/git.py b/hgext/convert/git.py
--- a/hgext/convert/git.py
+++ b/hgext/convert/git.py
@@ -371,28 +371,31 @@ class convert_git(converter_source):
     def getbookmarks(self):
         bookmarks = {}
 
-        # Interesting references in git are prefixed
-        prefix = 'refs/heads/'
-        prefixlen = len(prefix)
+        # Handle local and remote branches
+        remoteprefix = self.ui.config('convert', 'git.remoteprefix', 'remote')
+        reftypes = [
+            # (git prefix, hg prefix)
+            ('refs/remotes/origin/', remoteprefix + '/'),
+            ('refs/heads/', '')
+        ]
 
-        # factor two commands
-        remoteprefix = self.ui.config('convert', 'git.remoteprefix', 'remote')
-        gitcmd = { remoteprefix + '/': 'git ls-remote --heads origin',
-                                   '': 'git show-ref'}
+        exclude = set([
+            'refs/remotes/origin/HEAD',
+        ])
 
-        # Origin heads
-        for reftype in gitcmd:
-            try:
-                fh = self.gitopen(gitcmd[reftype], err=subprocess.PIPE)
-                for line in fh:
-                    line = line.strip()
-                    rev, name = line.split(None, 1)
-                    if not name.startswith(prefix):
+        try:
+            fh = self.gitopen('git show-ref', err=subprocess.PIPE)
+            for line in fh:
+                line = line.strip()
+                rev, name = line.split(None, 1)
+                # Process each type of branch
+                for gitprefix, hgprefix in reftypes:
+                    if not name.startswith(gitprefix) or name in exclude:
                         continue
-                    name = '%s%s' % (reftype, name[prefixlen:])
+                    name = '%s%s' % (hgprefix, name[len(gitprefix):])
                     bookmarks[name] = rev
-            except Exception:
-                pass
+        except Exception:
+            pass
 
         return bookmarks
 
diff --git a/tests/test-convert-git.t b/tests/test-convert-git.t
--- a/tests/test-convert-git.t
+++ b/tests/test-convert-git.t
@@ -666,6 +666,28 @@ convert using a different remote prefix
      master                    0:03bf38caa4c6
      origin/master             0:03bf38caa4c6
 
+Run convert when the remote branches have changed
+(there was an old bug where the local convert read branches from the server)
+
+  $ cd git-repo7
+  $ echo a >> a
+  $ git commit -am "move master forward"
+  [master 0c81947] move master forward
+   Author: nottest <test@example.org>
+   1 file changed, 1 insertion(+)
+  $ cd ..
+  $ rm -rf hg-repo7
+  $ hg convert --config convert.git.remoteprefix=origin git-repo7-client hg-repo7
+  initializing destination hg-repo7 repository
+  scanning source...
+  sorting...
+  converting...
+  0 commit a
+  updating bookmarks
+  $ hg -R hg-repo7 bookmarks
+     master                    0:03bf38caa4c6
+     origin/master             0:03bf38caa4c6
+
 damaged git repository tests:
 In case the hard-coded hashes change, the following commands can be used to
 list the hashes and their corresponding types in the repository: