diff --git a/mercurial/templatefilters.py b/mercurial/templatefilters.py
--- a/mercurial/templatefilters.py
+++ b/mercurial/templatefilters.py
@@ -99,8 +99,8 @@ def escape(text):
 para_re = None
 space_re = None
 
-def fill(text, width):
-    '''fill many paragraphs.'''
+def fill(text, width, initindent = '', hangindent = ''):
+    '''fill many paragraphs with optional indentation.'''
     global para_re, space_re
     if para_re is None:
         para_re = re.compile('(\n\n|\n\\s*[-*]\\s*)', re.M)
@@ -121,7 +121,8 @@ def fill(text, width):
             yield text[start:m.start(0)], m.group(1)
             start = m.end(1)
 
-    return "".join([space_re.sub(' ', util.wrap(para, width=width)) + rest
+    return "".join([util.wrap(space_re.sub(' ', util.wrap(para, width)),
+                              width, initindent, hangindent) + rest
                     for para, rest in findparas()])
 
 def fill68(text):
diff --git a/mercurial/templater.py b/mercurial/templater.py
--- a/mercurial/templater.py
+++ b/mercurial/templater.py
@@ -299,18 +299,29 @@ def rstdoc(context, mapping, args):
     return minirst.format(text, style=style, keep=['verbose'])
 
 def fill(context, mapping, args):
-    if not (1 <= len(args) <= 2):
-        raise error.ParseError(_("fill expects one or two arguments"))
+    if not (1 <= len(args) <= 4):
+        raise error.ParseError(_("fill expects one to four arguments"))
 
     text = stringify(args[0][0](context, mapping, args[0][1]))
     width = 76
-    if len(args) == 2:
+    initindent = ''
+    hangindent = ''
+    if 2 <= len(args) <= 4:
         try:
             width = int(stringify(args[1][0](context, mapping, args[1][1])))
         except ValueError:
             raise error.ParseError(_("fill expects an integer width"))
+        try:
+            initindent = stringify(args[2][0](context, mapping, args[2][1]))
+            initindent = stringify(runtemplate(context, mapping,
+                                     compiletemplate(initindent, context)))
+            hangindent = stringify(args[3][0](context, mapping, args[3][1]))
+            hangindent = stringify(runtemplate(context, mapping,
+                                     compiletemplate(hangindent, context)))
+        except IndexError:
+            pass
 
-    return templatefilters.fill(text, width)
+    return templatefilters.fill(text, width, initindent, hangindent)
 
 def date(context, mapping, args):
     if not (1 <= len(args) <= 2):