diff --git a/mercurial/sparse.py b/mercurial/sparse.py
--- a/mercurial/sparse.py
+++ b/mercurial/sparse.py
@@ -361,6 +361,11 @@
         elif file in wctx:
             prunedactions[file] = ('r', args, msg)
 
+        if branchmerge and type == mergemod.ACTION_MERGE:
+            f1, f2, fa, move, anc = args
+            if not sparsematch(f1):
+                temporaryfiles.append(f1)
+
     if len(temporaryfiles) > 0:
         repo.ui.status(_('temporarily included %d file(s) in the sparse '
                          'checkout for merging\n') % len(temporaryfiles))
diff --git a/tests/test-sparse-merges.t b/tests/test-sparse-merges.t
--- a/tests/test-sparse-merges.t
+++ b/tests/test-sparse-merges.t
@@ -172,10 +172,13 @@
   d
 
   $ hg merge
-  abort: $ENOENT$: $TESTTMP/mvtest/a
-  [255]
+  temporarily included 1 file(s) in the sparse checkout for merging
+  merging a and amove to amove
+  0 files updated, 1 files merged, 0 files removed, 0 files unresolved
+  (branch merge, don't forget to commit)
 
   $ hg up -C 4
+  cleaned up 1 temporarily added file(s) from the sparse checkout
   1 files updated, 0 files merged, 0 files removed, 0 files unresolved
 
   $ hg merge
diff --git a/tests/test-sparse-profiles.t b/tests/test-sparse-profiles.t
--- a/tests/test-sparse-profiles.t
+++ b/tests/test-sparse-profiles.t
@@ -119,7 +119,7 @@
 Verify conflicting merge pulls in the conflicting changes
 
   $ hg merge 1
-  temporarily included 1 file(s) in the sparse checkout for merging
+  temporarily included 2 file(s) in the sparse checkout for merging
   merging backend.sparse
   merging data.py
   warning: conflicts while merging backend.sparse! (edit, then use 'hg resolve --mark')
@@ -184,7 +184,7 @@
 
   $ hg rebase -d 2
   rebasing 1:a2b1de640a62 "edit profile"
-  temporarily included 1 file(s) in the sparse checkout for merging
+  temporarily included 2 file(s) in the sparse checkout for merging
   merging backend.sparse
   merging data.py
   warning: conflicts while merging backend.sparse! (edit, then use 'hg resolve --mark')
diff --git a/tests/test-sparse.t b/tests/test-sparse.t
--- a/tests/test-sparse.t
+++ b/tests/test-sparse.t
@@ -189,7 +189,7 @@
 
   $ hg rebase -d 1 -r 2 --config extensions.rebase=
   rebasing 2:b91df4f39e75 "edit hide" (tip)
-  temporarily included 1 file(s) in the sparse checkout for merging
+  temporarily included 2 file(s) in the sparse checkout for merging
   merging hide
   warning: conflicts while merging hide! (edit, then use 'hg resolve --mark')
   unresolved conflicts (see hg resolve, then hg rebase --continue)
@@ -224,7 +224,7 @@
 
   $ hg up -q 1
   $ hg merge -r 2
-  temporarily included 1 file(s) in the sparse checkout for merging
+  temporarily included 2 file(s) in the sparse checkout for merging
   merging hide
   warning: conflicts while merging hide! (edit, then use 'hg resolve --mark')
   0 files updated, 0 files merged, 0 files removed, 1 files unresolved