diff --git a/mercurial/store.py b/mercurial/store.py
--- a/mercurial/store.py
+++ b/mercurial/store.py
@@ -24,6 +24,20 @@ from . import (
 
 parsers = policy.importmod(r'parsers')
 
+def _matchtrackedpath(path, matcher):
+    """parses a fncache entry and returns whether the entry is tracking a path
+    matched by matcher or not.
+
+    If matcher is None, returns True"""
+
+    if matcher is None:
+        return True
+    path = decodedir(path)
+    if path.startswith('data/'):
+        return matcher(path[len('data/'):-len('.i')])
+    elif path.startswith('meta/'):
+        return matcher.visitdir(path[len('meta/'):-len('/00manifest.i')] or '.')
+
 # This avoids a collision between a file named foo and a dir named
 # foo.i or foo.d
 def _encodedir(path):
@@ -413,6 +427,8 @@ class encodedstore(basicstore):
 
     def datafiles(self, matcher=None):
         for a, b, size in super(encodedstore, self).datafiles():
+            if not _matchtrackedpath(a, matcher):
+                continue
             try:
                 a = decodefilename(a)
             except KeyError:
@@ -542,6 +558,8 @@ class fncachestore(basicstore):
 
     def datafiles(self, matcher=None):
         for f in sorted(self.fncache):
+            if not _matchtrackedpath(f, matcher):
+                continue
             ef = self.encode(f)
             try:
                 yield f, ef, self.getsize(ef)
diff --git a/mercurial/streamclone.py b/mercurial/streamclone.py
--- a/mercurial/streamclone.py
+++ b/mercurial/streamclone.py
@@ -545,10 +545,6 @@ def generatev2(repo, includes, excludes,
     Returns a 3-tuple of (file count, file size, data iterator).
     """
 
-    # temporarily raise error until we add storage level logic
-    if includes or excludes:
-        raise error.Abort(_("server does not support narrow stream clones"))
-
     with repo.lock():
 
         entries = []
diff --git a/tests/test-narrow-clone-stream.t b/tests/test-narrow-clone-stream.t
--- a/tests/test-narrow-clone-stream.t
+++ b/tests/test-narrow-clone-stream.t
@@ -1,7 +1,16 @@
+#testcases tree flat
+
 Tests narrow stream clones
 
   $ . "$TESTDIR/narrow-library.sh"
 
+#if tree
+  $ cat << EOF >> $HGRCPATH
+  > [experimental]
+  > treemanifest = 1
+  > EOF
+#endif
+
 Server setup
 
   $ hg init master
@@ -27,13 +36,51 @@ Trying to stream clone when the server d
 
 Enable stream clone on the server
 
-  $ echo "[server]" >> master/.hg/hgrc
+  $ echo "[experimental.server]" >> master/.hg/hgrc
   $ echo "stream-narrow-clones=True" >> master/.hg/hgrc
 
 Cloning a specific file when stream clone is supported
 
   $ hg clone --narrow ssh://user@dummy/master narrow --noupdate --include "dir/src/f10" --stream
   streaming all changes
-  remote: abort: server does not support narrow stream clones
-  abort: pull failed on remote
-  [255]
+  * files to transfer, * KB of data (glob)
+  transferred * KB in * seconds (* */sec) (glob)
+
+  $ cd narrow
+  $ ls
+  $ hg tracked
+  I path:dir/src/f10
+
+Making sure we have the correct set of requirements
+
+  $ cat .hg/requires
+  dotencode
+  fncache
+  generaldelta
+  narrowhg-experimental
+  revlogv1
+  store
+  treemanifest (tree !)
+
+Making sure store has the required files
+
+  $ ls .hg/store/
+  00changelog.i
+  00manifest.i
+  data
+  fncache
+  meta (tree !)
+  narrowspec
+  undo
+  undo.backupfiles
+  undo.phaseroots
+
+Checking that repository has all the required data and not broken
+
+  $ hg verify
+  checking changesets
+  checking manifests
+  checking directory manifests (tree !)
+  crosschecking files in changesets and manifests
+  checking files
+  checked 40 changesets with 1 changes to 1 files