2 files changed, 7 insertions, 3 deletions

diff --git a/etc/NEWS b/etc/NEWS
index ac23b3b1814..b71ac804e39 100644
--- a/etc/NEWS
+++ b/etc/NEWS
@@ -339,6 +339,12 @@ When no files are marked, all modified files are stashed, as before.
 
 *** The new hook 'vc-retrieve-tag-hook' runs after retrieving a tag.
 
+--- `vc-hg' now invokes `smerge-mode' correctly when visiting files.
+Code that attempted to invoke `smerge-mode' when visiting an Hg file
+with conflicts existed in earlier versions of Emacs, but incorrectly
+never detected a conflict due to invalid assumptions about cached
+values.
+
 ** diff-mode
 *** Hunks are now automatically refined by default.
 To disable it, set the new defcustom 'diff-font-lock-refine' to nil.
diff --git a/lisp/vc/vc-hg.el b/lisp/vc/vc-hg.el
index 36965735959..d528813bc08 100644
--- a/lisp/vc/vc-hg.el
+++ b/lisp/vc/vc-hg.el
@@ -1142,11 +1142,9 @@ REV is the revision to check out into WORKFILE."
 
 (defun vc-hg-find-file-hook ()
   (when (and buffer-file-name
-             (file-exists-p (concat buffer-file-name ".orig"))
              ;; Hg does not seem to have a "conflict" status, eg
              ;; hg http://bz.selenic.com/show_bug.cgi?id=2724
-             (memq (vc-file-getprop buffer-file-name 'vc-state)
-                   '(edited conflict))
+             (memq (vc-state buffer-file-name) '(edited conflict))
              ;; Maybe go on to check that "hg resolve -l" says "U"?
              ;; If "hg resolve -l" says there's a conflict but there are no
              ;; conflict markers, it's not clear what we should do.