Index: mercurial/filemerge.py
===================================================================
--- mercurial/filemerge.py
+++ mercurial/filemerge.py
@@ -715,6 +715,7 @@
         if r:
             if onfailure:
                 ui.warn(onfailure % fd)
+            _onfilemergefailure(ui)
 
         return True, r, deleted
     finally:
Index: tests/test-merge-halt.t
===================================================================
--- tests/test-merge-halt.t
+++ tests/test-merge-halt.t
@@ -44,8 +44,7 @@
   merging a
   merging b
   merging a failed!
-  merging b failed!
-  unresolved conflicts (see hg resolve, then hg rebase --continue)
+  merge halted after failed merge (see hg resolve)
   [1]
 
   $ hg resolve --list
@@ -65,8 +64,10 @@
   merging a
   merging b
   merging a failed!
+  continue merge operation (yn)? y
   merging b failed!
-  unresolved conflicts (see hg resolve, then hg rebase --continue)
+  continue merge operation (yn)? n
+  merge halted after failed merge (see hg resolve)
   [1]
 
   $ hg resolve --list