diff --git a/mercurial/url.py b/mercurial/url.py
--- a/mercurial/url.py
+++ b/mercurial/url.py
@@ -7,7 +7,7 @@
 # This software may be used and distributed according to the terms of the
 # GNU General Public License version 2 or any later version.
 
-import urllib, urllib2, httplib, os, socket, cStringIO
+import urllib, urllib2, httplib, os, socket, cStringIO, base64
 from i18n import _
 import keepalive, util, sslutil
 import httpconnection as httpconnectionmod
@@ -422,9 +422,22 @@ class httpdigestauthhandler(urllib2.HTTP
 
 class httpbasicauthhandler(urllib2.HTTPBasicAuthHandler):
     def __init__(self, *args, **kwargs):
+        self.auth = None
         urllib2.HTTPBasicAuthHandler.__init__(self, *args, **kwargs)
         self.retried_req = None
 
+    def http_request(self, request):
+        if self.auth:
+            request.add_unredirected_header(self.auth_header, self.auth)
+
+        return request
+
+    def https_request(self, request):
+        if self.auth:
+            request.add_unredirected_header(self.auth_header, self.auth)
+
+        return request
+
     def reset_retry_count(self):
         # Python 2.6.5 will call this on 401 or 407 errors and thus loop
         # forever. We disable reset_retry_count completely and reset in
@@ -439,6 +452,19 @@ class httpbasicauthhandler(urllib2.HTTPB
         return urllib2.HTTPBasicAuthHandler.http_error_auth_reqed(
                         self, auth_header, host, req, headers)
 
+    def retry_http_basic_auth(self, host, req, realm):
+        user, pw = self.passwd.find_user_password(realm, req.get_full_url())
+        if pw is not None:
+            raw = "%s:%s" % (user, pw)
+            auth = 'Basic %s' % base64.b64encode(raw).strip()
+            if req.headers.get(self.auth_header, None) == auth:
+                return None
+            self.auth = auth
+            req.add_unredirected_header(self.auth_header, auth)
+            return self.parent.open(req)
+        else:
+            return None
+
 handlerfuncs = []
 
 def opener(ui, authinfo=None):
diff --git a/tests/test-http.t b/tests/test-http.t
--- a/tests/test-http.t
+++ b/tests/test-http.t
@@ -226,37 +226,31 @@ test http authentication
   "GET /?cmd=lookup HTTP/1.1" 200 - x-hgarg-1:key=tip
   "GET /?cmd=listkeys HTTP/1.1" 401 - x-hgarg-1:namespace=namespaces
   "GET /?cmd=listkeys HTTP/1.1" 200 - x-hgarg-1:namespace=namespaces
-  "GET /?cmd=listkeys HTTP/1.1" 401 - x-hgarg-1:namespace=bookmarks
   "GET /?cmd=listkeys HTTP/1.1" 200 - x-hgarg-1:namespace=bookmarks
   "GET /?cmd=capabilities HTTP/1.1" 200 -
   "GET /?cmd=lookup HTTP/1.1" 200 - x-hgarg-1:key=tip
   "GET /?cmd=listkeys HTTP/1.1" 401 - x-hgarg-1:namespace=namespaces
   "GET /?cmd=listkeys HTTP/1.1" 200 - x-hgarg-1:namespace=namespaces
-  "GET /?cmd=listkeys HTTP/1.1" 401 - x-hgarg-1:namespace=bookmarks
   "GET /?cmd=listkeys HTTP/1.1" 200 - x-hgarg-1:namespace=bookmarks
   "GET /?cmd=capabilities HTTP/1.1" 200 -
   "GET /?cmd=lookup HTTP/1.1" 200 - x-hgarg-1:key=tip
   "GET /?cmd=listkeys HTTP/1.1" 401 - x-hgarg-1:namespace=namespaces
   "GET /?cmd=listkeys HTTP/1.1" 200 - x-hgarg-1:namespace=namespaces
-  "GET /?cmd=listkeys HTTP/1.1" 401 - x-hgarg-1:namespace=bookmarks
   "GET /?cmd=listkeys HTTP/1.1" 200 - x-hgarg-1:namespace=bookmarks
   "GET /?cmd=capabilities HTTP/1.1" 200 -
   "GET /?cmd=lookup HTTP/1.1" 200 - x-hgarg-1:key=tip
   "GET /?cmd=listkeys HTTP/1.1" 401 - x-hgarg-1:namespace=namespaces
   "GET /?cmd=listkeys HTTP/1.1" 200 - x-hgarg-1:namespace=namespaces
-  "GET /?cmd=listkeys HTTP/1.1" 401 - x-hgarg-1:namespace=bookmarks
   "GET /?cmd=listkeys HTTP/1.1" 200 - x-hgarg-1:namespace=bookmarks
   "GET /?cmd=capabilities HTTP/1.1" 200 -
   "GET /?cmd=lookup HTTP/1.1" 200 - x-hgarg-1:key=tip
   "GET /?cmd=listkeys HTTP/1.1" 401 - x-hgarg-1:namespace=namespaces
   "GET /?cmd=listkeys HTTP/1.1" 200 - x-hgarg-1:namespace=namespaces
-  "GET /?cmd=listkeys HTTP/1.1" 401 - x-hgarg-1:namespace=bookmarks
   "GET /?cmd=listkeys HTTP/1.1" 200 - x-hgarg-1:namespace=bookmarks
   "GET /?cmd=capabilities HTTP/1.1" 200 -
   "GET /?cmd=branchmap HTTP/1.1" 200 -
   "GET /?cmd=stream_out HTTP/1.1" 401 -
   "GET /?cmd=stream_out HTTP/1.1" 200 -
-  "GET /?cmd=listkeys HTTP/1.1" 401 - x-hgarg-1:namespace=bookmarks
   "GET /?cmd=listkeys HTTP/1.1" 200 - x-hgarg-1:namespace=bookmarks
   "GET /?cmd=capabilities HTTP/1.1" 200 -
   "GET /?cmd=lookup HTTP/1.1" 200 - x-hgarg-1:key=tip
@@ -271,13 +265,9 @@ test http authentication
   "GET /?cmd=branchmap HTTP/1.1" 200 -
   "GET /?cmd=listkeys HTTP/1.1" 401 - x-hgarg-1:namespace=bookmarks
   "GET /?cmd=listkeys HTTP/1.1" 200 - x-hgarg-1:namespace=bookmarks
-  "POST /?cmd=unbundle HTTP/1.1" 401 - x-hgarg-1:heads=686173686564+5eb5abfefeea63c80dd7553bcc3783f37e0c5524
   "POST /?cmd=unbundle HTTP/1.1" 200 - x-hgarg-1:heads=686173686564+5eb5abfefeea63c80dd7553bcc3783f37e0c5524
-  "GET /?cmd=listkeys HTTP/1.1" 401 - x-hgarg-1:namespace=phases
   "GET /?cmd=listkeys HTTP/1.1" 200 - x-hgarg-1:namespace=phases
-  "POST /?cmd=pushkey HTTP/1.1" 401 - x-hgarg-1:key=7f4e523d01f2cc3765ac8934da3d14db775ff872&namespace=phases&new=0&old=1
   "POST /?cmd=pushkey HTTP/1.1" 200 - x-hgarg-1:key=7f4e523d01f2cc3765ac8934da3d14db775ff872&namespace=phases&new=0&old=1
-  "GET /?cmd=listkeys HTTP/1.1" 401 - x-hgarg-1:namespace=bookmarks
   "GET /?cmd=listkeys HTTP/1.1" 200 - x-hgarg-1:namespace=bookmarks
 
 #endif