diff --git a/mercurial/exchange.py b/mercurial/exchange.py
--- a/mercurial/exchange.py
+++ b/mercurial/exchange.py
@@ -1351,9 +1351,24 @@
         # before discovery to avoid extra work.
         _maybeapplyclonebundle(pullop)
         streamclone.maybeperformlegacystreamclone(pullop)
-        _pulldiscovery(pullop)
-        if pullop.canusebundle2:
+        while True:
+            _pulldiscovery(pullop)
+            if not pullop.canusebundle2:
+                break
             _pullbundle2(pullop)
+            # The server may send a partial reply, i.e. when inlining
+            # pre-computed bundles. In that case, re-run the discovery
+            # phase and bundle again. There are two indicators that the
+            # process is finished:
+            # - no changes have been received (cgresult)
+            # - all remote heads are known locally
+            # The head check must use the unfiltered view as obsoletion
+            # markers can hide heads.
+            if not pullop.cgresult:
+                break
+            unficl = repo.unfiltered().changelog
+            if all(unficl.hasnode(n) for n in pullop.rheads):
+                break
         _pullchangeset(pullop)
         _pullphase(pullop)
         _pullbookmarks(pullop)
diff --git a/mercurial/wireproto.py b/mercurial/wireproto.py
--- a/mercurial/wireproto.py
+++ b/mercurial/wireproto.py
@@ -915,8 +915,7 @@
         common = set(opts.get('common', set()))
         common.discard(nullid)
 
-        if repo.ui.configbool('server', 'pullbundle') and
-           self.capable('partial-pull'):
+        if repo.ui.configbool('server', 'pullbundle'):
             # Check if a pre-built bundle covers this request.
             bundle = find_pullbundle(repo, opts, clheads, heads, common)
             if bundle:
diff --git a/tests/test-pull-r.t b/tests/test-pull-r.t
--- a/tests/test-pull-r.t
+++ b/tests/test-pull-r.t
@@ -201,3 +201,40 @@
   sending pullbundle "0.hg"
   sending pullbundle "1.hg"
   sending pullbundle "2.hg"
+
+Test pullbundle functionality for incremental pulls
+
+  $ cd repo
+  $ hg serve --debug -p $HGPORT2 --pid-file=../repo.pid > ../repo-server.txt 2>&1 &
+  $ while ! grep listening ../repo-server.txt > /dev/null; do sleep 1; done
+  $ cat ../repo.pid >> $DAEMON_PIDS
+  $ cd ..
+  $ hg clone http://localhost:$HGPORT2/ repo.pullbundle2
+  requesting all changes
+  adding changesets
+  adding manifests
+  adding file changes
+  added 1 changesets with 1 changes to 1 files
+  searching for changes
+  adding changesets
+  adding manifests
+  adding file changes
+  added 1 changesets with 1 changes to 1 files
+  searching for changes
+  adding changesets
+  adding manifests
+  adding file changes
+  added 1 changesets with 1 changes to 1 files (+1 heads)
+  searching for changes
+  adding changesets
+  adding manifests
+  adding file changes
+  added 1 changesets with 1 changes to 1 files
+  new changesets bbd179dfa0a7:66e3ba28d0d7
+  updating to branch default
+  3 files updated, 0 files merged, 0 files removed, 0 files unresolved
+  $ killdaemons.py
+  $ grep 'sending pullbundle ' repo-server.txt
+  sending pullbundle "0.hg"
+  sending pullbundle "2.hg"
+  sending pullbundle "1.hg"