diff --git a/mercurial/merge.py b/mercurial/merge.py
--- a/mercurial/merge.py
+++ b/mercurial/merge.py
@@ -1845,6 +1845,39 @@
     }
 
 
+def _extract_copies(actions, branchmerge):
+    """record merge actions to the dirstate"""
+    copies = {}
+    # resolve path conflicts
+    for f, args, msg in actions.get(ACTION_PATH_CONFLICT_RESOLVE, []):
+        (f0,) = args
+        copies[f] = f0
+
+    # merge
+    for f, args, msg in actions.get(ACTION_MERGE, []):
+        f1, f2, fa, move, anc = args
+        if branchmerge:
+            if f1 != f2:  # copy/rename
+                if f1 != f:
+                    copies[f] = f1
+                else:
+                    copies[f] = f2
+
+    # directory rename, move local
+    for f, args, msg in actions.get(ACTION_DIR_RENAME_MOVE_LOCAL, []):
+        f0, flag = args
+        if branchmerge:
+            copies[f] = f0
+
+    # directory rename, get
+    for f, args, msg in actions.get(ACTION_LOCAL_DIR_RENAME_GET, []):
+        f0, flag = args
+        if branchmerge:
+            copies[f] = f0
+
+    return copies
+
+
 def applyupdates(
     repo, actions, wctx, mctx, overwrite, wantfiledata, labels=None
 ):
@@ -2155,7 +2188,6 @@
         (f0,) = args
         origf0 = repo.dirstate.copied(f0) or f0
         repo.dirstate.add(f)
-        repo.dirstate.copy(origf0, f)
         if f0 == origf0:
             repo.dirstate.remove(f0)
         else:
@@ -2198,10 +2230,6 @@
             if f1 != f2:  # copy/rename
                 if move:
                     repo.dirstate.remove(f1)
-                if f1 != f:
-                    repo.dirstate.copy(f1, f)
-                else:
-                    repo.dirstate.copy(f2, f)
         else:
             # We've update-merged a locally modified file, so
             # we set the dirstate to emulate a normal checkout
@@ -2219,7 +2247,6 @@
         if branchmerge:
             repo.dirstate.add(f)
             repo.dirstate.remove(f0)
-            repo.dirstate.copy(f0, f)
         else:
             repo.dirstate.normal(f)
             repo.dirstate.drop(f0)
@@ -2229,7 +2256,6 @@
         f0, flag = args
         if branchmerge:
             repo.dirstate.add(f)
-            repo.dirstate.copy(f0, f)
         else:
             repo.dirstate.normal(f)
 
@@ -2602,6 +2628,13 @@
             )
 
         wantfiledata = updatedirstate and not branchmerge
+        resulting_copies = {}
+        if not overwrite:
+            existing_copies = wc.p2copies()
+            existing_copies.update(wc.p1copies())
+            new_copies = _extract_copies(actions, branchmerge)
+            resulting_copies = copies.chain(existing_copies, new_copies)
+
         stats, getfiledata = applyupdates(
             repo, actions, wc, p2, overwrite, wantfiledata, labels=labels
         )
@@ -2609,6 +2642,7 @@
         if updatedirstate:
             with repo.dirstate.parentchange():
                 repo.setparents(fp1, fp2)
+                wc = repo[None]
                 recordupdates(repo, actions, branchmerge, getfiledata)
                 # update completed, clear state
                 util.unlink(repo.vfs.join(b'updatestate'))
@@ -2616,6 +2650,16 @@
                 if not branchmerge:
                     repo.dirstate.setbranch(p2.branch())
 
+        # This is a version of copies.filter() modified to work with merges
+        for dst, src in resulting_copies.items():
+            if dst == src:
+                continue
+            if dst not in wc:
+                continue
+            if not (src in wc.p1() or src in wc.p2()):
+                continue
+            wc[dst].markcopied(src)
+
     # If we're updating to a location, clean up any stale temporary includes
     # (ex: this happens during hg rebase --abort).
     if not branchmerge: