diff -r 71d0fd3c2e24 -r 2e31a17ad1bf mercurial/merge.py
--- a/mercurial/merge.py	Thu Dec 17 14:57:20 2015 +0000
+++ b/mercurial/merge.py	Mon Dec 14 20:57:21 2015 -0500
@@ -722,12 +722,13 @@
                 break
 
     # Compare manifests
+    if matcher is not None:
+        m1 = m1.matches(matcher)
+        m2 = m2.matches(matcher)
     diff = m1.diff(m2)
 
     actions = {}
     for f, ((n1, fl1), (n2, fl2)) in diff.iteritems():
-        if matcher and not matcher(f):
-            continue
         if n1 and n2: # file exists on both local and remote side
             if f not in ma:
                 fa = copy.get(f, None)