diff --git a/mercurial/streamclone.py b/mercurial/streamclone.py
--- a/mercurial/streamclone.py
+++ b/mercurial/streamclone.py
@@ -204,7 +204,7 @@
 def _walkstreamfiles(repo):
     return repo.store.walk()
 
-def generatev1(repo):
+def generatev1(repo, includes=None, excludes=None):
     """Emit content for version 1 of a streaming clone.
 
     This returns a 3-tuple of (file count, byte size, data iterator).
@@ -223,6 +223,10 @@
     This function will obtain a repository lock to ensure a consistent view of
     the store is captured. It therefore may raise LockError.
     """
+    if includes or excludes:
+        raise error.Abort("the server support for narrow stream clones is not"
+                          " implemented yet")
+
     entries = []
     total_bytes = 0
     # Get consistent snapshot of repo, lock during scan.
@@ -256,7 +260,7 @@
 
     return len(entries), total_bytes, emitrevlogdata()
 
-def generatev1wireproto(repo):
+def generatev1wireproto(repo, includes, excludes):
     """Emit content for version 1 of streaming clone suitable for the wire.
 
     This is the data output from ``generatev1()`` with 2 header lines. The
@@ -272,7 +276,8 @@
         return
 
     try:
-        filecount, bytecount, it = generatev1(repo)
+        filecount, bytecount, it = generatev1(repo, includes=includes,
+                                              excludes=excludes)
     except error.LockError:
         yield '2\n'
         return
diff --git a/mercurial/wireprotov1server.py b/mercurial/wireprotov1server.py
--- a/mercurial/wireprotov1server.py
+++ b/mercurial/wireprotov1server.py
@@ -547,10 +547,10 @@
     includes = None
     excludes = None
     if 'narrowstream' in _capabilities(repo, proto):
-        includes = args.get('includes')
-        excludes = args.get('excludes')
+        includes = wireprototypes.decodelist(args.get('includes'))
+        excludes = wireprototypes.decodelist(args.get('excludes'))
     return wireprototypes.streamreslegacy(
-        streamclone.generatev1wireproto(repo))
+        streamclone.generatev1wireproto(repo, includes, excludes))
 
 @wireprotocommand('unbundle', 'heads', permission='push')
 def unbundle(repo, proto, heads):
diff --git a/tests/test-narrow-clone-stream.t b/tests/test-narrow-clone-stream.t
new file mode 100644
--- /dev/null
+++ b/tests/test-narrow-clone-stream.t
@@ -0,0 +1,43 @@
+Tests the support of serving narrow-stream clones with stream clone v1
+
+  $ . "$TESTDIR/narrow-library.sh"
+
+Server setup
+
+  $ hg init master
+  $ cd master
+  $ echo "[server]" >> .hg/hgrc
+  $ echo "bundle2.stream=False" >> .hg/hgrc
+  $ mkdir dir
+  $ mkdir dir/src
+  $ cd dir/src
+  $ for x in `$TESTDIR/seq.py 20`; do echo $x > "f$x"; hg add "f$x"; hg commit -m "Commit src $x"; done
+  $ cd ..
+  $ mkdir tests
+  $ cd tests
+  $ for x in `$TESTDIR/seq.py 20`; do echo $x > "t$x"; hg add "t$x"; hg commit -m "Commit test $x"; done
+  $ cd ../../..
+
+Trying to stream clone when the server does not support it
+
+  $ hg clone --narrow ssh://user@dummy/master narrow --noupdate --include "dir/src/f10" --stream
+  streaming all changes
+  server does not support narrow stream clones, cloning full repository
+  42 files to transfer, 13.2 KB of data
+  transferred 13.2 KB in * seconds (* KB/sec) (glob)
+  searching for changes
+  no changes found
+
+Enable stream clone on server
+
+  $ cd master
+  $ echo "stream-narrow-clones=True" >> .hg/hgrc
+  $ cd ..
+
+Cloning a specific file when stream clone is supported
+
+  $ hg clone --narrow ssh://user@dummy/master realnarrow --noupdate --include "dir/src/f10" --stream
+  streaming all changes
+  remote: abort: the server support for narrow stream clones is not implemented yet
+  abort: unexpected response from remote server: empty string
+  [255]