diff --git a/bitbake/lib/bb/fetch/__init__.py b/bitbake/lib/bb/fetch/__init__.py
index da911e242c..eed7095819 100644
--- a/bitbake/lib/bb/fetch/__init__.py
+++ b/bitbake/lib/bb/fetch/__init__.py
@@ -461,6 +461,7 @@ import svk
 import ssh
 import perforce
 import bzr
+import hg
 
 methods.append(local.Local())
 methods.append(wget.Wget())
@@ -471,3 +472,4 @@ methods.append(svk.Svk())
 methods.append(ssh.SSH())
 methods.append(perforce.Perforce())
 methods.append(bzr.Bzr())
+methods.append(hg.Hg())
diff --git a/bitbake/lib/bb/fetch/hg.py b/bitbake/lib/bb/fetch/hg.py
new file mode 100644
index 0000000000..8e8073e56d
--- /dev/null
+++ b/bitbake/lib/bb/fetch/hg.py
@@ -0,0 +1,150 @@
+# ex:ts=4:sw=4:sts=4:et
+# -*- tab-width: 4; c-basic-offset: 4; indent-tabs-mode: nil -*-
+"""
+BitBake 'Fetch' implementation for mercurial DRCS (hg).
+
+"""
+
+# Copyright (C) 2003, 2004  Chris Larson
+# Copyright (C) 2004        Marcin Juszkiewicz
+# Copyright (C) 2007        Robert Schuster
+#
+# This program is free software; you can redistribute it and/or modify
+# it under the terms of the GNU General Public License version 2 as
+# published by the Free Software Foundation.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License along
+# with this program; if not, write to the Free Software Foundation, Inc.,
+# 51 Franklin Street, Fifth Floor, Boston, MA 02110-1301 USA.
+#
+# Based on functions from the base bb module, Copyright 2003 Holger Schurig
+
+import os, re
+import sys
+import bb
+from bb import data
+from bb.fetch import Fetch
+from bb.fetch import FetchError
+from bb.fetch import MissingParameterError
+from bb.fetch import runfetchcmd
+
+class Hg(Fetch):
+    """Class to fetch a from mercurial repositories"""
+    def supports(self, url, ud, d):
+        """
+        Check to see if a given url can be fetched with mercurial.
+        """
+        return ud.type in ['hg']
+
+    def localpath(self, url, ud, d):
+        if not "module" in ud.parm:
+            raise MissingParameterError("hg method needs a 'module' parameter")
+
+        ud.module = ud.parm["module"]
+
+        # Create paths to mercurial checkouts
+        relpath = ud.path
+        if relpath.startswith('/'):
+            # Remove leading slash as os.path.join can't cope
+            relpath = relpath[1:]
+        ud.pkgdir = os.path.join(data.expand('${HGDIR}', d), ud.host, relpath)
+        ud.moddir = os.path.join(ud.pkgdir, ud.module)
+
+        if 'rev' in ud.parm:
+            ud.revision = ud.parm['rev']
+        else:
+            #
+            rev = data.getVar("SRCREV", d, 0)
+            if rev and "get_srcrev" in rev:
+                ud.revision = self.latest_revision(url, ud, d)
+            elif rev:
+                ud.revision = rev
+            else:
+                ud.revision = ""
+
+        ud.localfile = data.expand('%s_%s_%s_%s.tar.gz' % (ud.module.replace('/', '.'), ud.host, ud.path.replace('/', '.'), ud.revision), d)
+
+        return os.path.join(data.getVar("DL_DIR", d, True), ud.localfile)
+
+    def _buildhgcommand(self, ud, d, command):
+        """
+        Build up an hg commandline based on ud
+        command is "fetch", "update", "info"
+        """
+
+        basecmd = data.expand('${FETCHCMD_hg}', d)
+
+        proto = "http"
+        if "proto" in ud.parm:
+            proto = ud.parm["proto"]
+
+        host = ud.host
+        if proto == "file":
+            host = "/"
+            ud.host = "localhost"
+
+        hgroot = host + ud.path
+
+        if command is "info":
+            return "%s identify -i %s://%s/%s" % (basecmd, proto, hgroot, ud.module)
+
+        options = [];
+        if ud.revision:
+            options.append("-r %s" % ud.revision)
+
+        if command is "fetch":
+            cmd = "%s clone %s %s://%s/%s %s" % (basecmd, " ".join(options), proto, hgroot, ud.module, ud.module)
+        elif command is "pull":
+            cmd = "%s pull %s" % (basecmd, " ".join(options))
+        elif command is "update":
+            cmd = "%s update -C %s" % (basecmd, " ".join(options))
+        else:
+            raise FetchError("Invalid hg command %s" % command)
+
+        return cmd
+
+    def go(self, loc, ud, d):
+        """Fetch url"""
+
+        # try to use the tarball stash
+        if Fetch.try_mirror(d, ud.localfile):
+            bb.msg.debug(1, bb.msg.domain.Fetcher, "%s already exists or was mirrored, skipping hg checkout." % ud.localpath)
+            return
+
+        bb.msg.debug(2, bb.msg.domain.Fetcher, "Fetch: checking for module directory '" + ud.moddir + "'")
+
+        if os.access(os.path.join(ud.moddir, '.hg'), os.R_OK):
+            updatecmd = self._buildhgcommand(ud, d, "pull")
+            bb.msg.note(1, bb.msg.domain.Fetcher, "Update " + loc)
+            # update sources there
+            os.chdir(ud.moddir)
+            bb.msg.debug(1, bb.msg.domain.Fetcher, "Running %s" % updatecmd)
+            runfetchcmd(updatecmd, d)
+
+            updatecmd = self._buildhgcommand(ud, d, "update")
+            bb.msg.debug(1, bb.msg.domain.Fetcher, "Running %s" % updatecmd)
+            runfetchcmd(updatecmd, d)
+        else:
+            fetchcmd = self._buildhgcommand(ud, d, "fetch")
+            bb.msg.note(1, bb.msg.domain.Fetcher, "Fetch " + loc)
+            # check out sources there
+            bb.mkdirhier(ud.pkgdir)
+            os.chdir(ud.pkgdir)
+            bb.msg.debug(1, bb.msg.domain.Fetcher, "Running %s" % fetchcmd)
+            runfetchcmd(fetchcmd, d)
+
+        os.chdir(ud.pkgdir)
+        try:
+            runfetchcmd("tar -czf %s %s" % (ud.localpath, ud.module), d)
+        except:
+            t, v, tb = sys.exc_info()
+            try:
+                os.unlink(ud.localpath)
+            except OSError:
+                pass
+            raise t, v, tb