When you encounter a merge conflict with Mercurial, things can get a little disorienting. The following is a practical list of steps to handle a merge conflict without getting lost.

1. List the conflict status (U = Unresolved, R = Resolved):

   hg resolve -la

2. Check the parents (first parent = local, second parent = other):

   hg parents

3. Resolve the conflict:
   1. Manual resolution and mark as resolved:

      vim <file> hg resolve -m <file>

   2. Resolution using a tool (such as fmmerge):

      hg resolve -t fmmerge <file>

   3. Resolve by selecting local/other version:

      hg resolve -t internal:local <file> hg resolve -t internal:other <file>

4. (If the resolution went wrong) Marking a file as unresolved, to redo the merge:

   hg resolve -u <file>

5. (If you decide the merge was a bad idea) To abort the merge altogether:

   hg update -C <rev>