To merge files Mercurial uses merge tools.
A merge tool combines two different versions of a file into a merged file. Merge tools are given the two files and the greatest common ancestor of the two file versions, so they can determine the changes made on both branches.
Merge tools are used both for "hg resolve", "hg merge", "hg update", "hg backout" and in several extensions.
Usually, the merge tool tries to automatically reconcile the files by combining all non-overlapping changes that occurred separately in the two different evolutions of the same initial base file. Furthermore, some interactive merge programs make it easier to manually resolve conflicting merges, either in a graphical way, or by inserting some conflict markers. Mercurial does not include any interactive merge programs but relies on external tools for that.
External merge tools and their properties are configured in the merge-tools configuration section - see hgrc(5) - but they can often just be named by their executable.
A merge tool is generally usable if its executable can be found on the system and if it can handle the merge. The executable is found if it is an absolute or relative executable path or the name of an application in the executable search path. The tool is assumed to be able to handle the merge if it can handle symlinks if the file is a symlink, if it can handle binary files if the file is binary, and if a GUI is available if the tool requires a GUI.
There are some internal merge tools which can be used. The internal merge tools are:
Internal tools are always available and do not require a GUI but will by default not handle symlinks or binary files.
Mercurial uses these rules when deciding which merge tool to use:
Note: After selecting a merge program, Mercurial will by default attempt to merge the files using a simple merge algorithm first. Only if it doesn't succeed because of conflicting changes Mercurial will actually execute the merge program. Whether to use the simple merge algorithm first can be controlled by the premerge setting of the merge tool. Premerge is enabled by default unless the file is binary or a symlink.
See the merge-tools and ui sections of hgrc(5) for details on the configuration of merge tools.