diff --git a/mercurial/changegroup.py b/mercurial/changegroup.py
--- a/mercurial/changegroup.py
+++ b/mercurial/changegroup.py
@@ -23,6 +23,7 @@
     dagutil,
     error,
     mdiff,
+    obsolete,
     phases,
     pycompat,
     util,
@@ -259,7 +260,15 @@
         - number of heads stays the same: 1
         """
         repo = repo.unfiltered()
+
+        incomingnodes = set()
+        localonlyobs = obsolete.getoptions(repo)[obsolete.localonlymodeopt]
+
         def csmap(x):
+            # Don't bother tracking if we don't do anything with data.
+            if localonlyobs:
+                incomingnodes.add(x)
+
             repo.ui.debug("add changeset %s\n" % short(x))
             return len(cl)
 
@@ -308,6 +317,17 @@
             cgnodes = cl.addgroup(deltas, csmap, trp, addrevisioncb=onchangelog)
             efiles = len(efiles)
 
+            # TODO do we need to invalidate visibility caches when we
+            # remove markers?
+            if localonlyobs and incomingnodes:
+                indices = [i for i, t in enumerate(repo.obsstore._all)
+                           if t[0] in incomingnodes]
+                if indices:
+                    from . import repair
+                    # TODO is # markers == # unhidden changesets?
+                    repo.ui.status(_('unhiding %d changesets\n') % len(indices))
+                    repair.deleteobsmarkers(repo.obsstore, indices)
+
             if not cgnodes:
                 repo.ui.develwarn('applied empty changegroup',
                                   config='warn-empty-changegroup')
diff --git a/tests/test-amend.t b/tests/test-amend.t
--- a/tests/test-amend.t
+++ b/tests/test-amend.t
@@ -102,15 +102,13 @@
 
   $ hg unbundle .hg/strip-backup/112478962961-7e959a55-amend.hg
   adding changesets
+  unhiding 1 changesets
   adding manifests
   adding file changes
   added 0 changesets with 0 changes to 1 files
   (run 'hg update' to get a working copy)
 
-TODO obsmarker should be deleted, both versions should be visible
-
   $ hg debugobsolete
-  112478962961147124edd43549aedd1a335e44bf be169c7e8dbe21cd10b3d79691cbe7f241e3c21c 0 (Thu Jan 01 00:00:00 1970 +0000) {'ef1': '8', 'operation': 'amend', 'user': 'test'}
 
   $ hg log -G
   @  changeset:   2:be169c7e8dbe
@@ -120,11 +118,10 @@
   |  date:        Thu Jan 01 00:00:00 1970 +0000
   |  summary:     B
   |
-  | x  changeset:   1:112478962961
+  | o  changeset:   1:112478962961
   |/   tag:         B
   |    user:        test
   |    date:        Thu Jan 01 00:00:00 1970 +0000
-  |    obsolete:    rewritten using amend as 2:be169c7e8dbe
   |    summary:     B
   |
   o  changeset:   0:426bada5c675