diff --git a/resources/leiningen/new/app/gitignore b/resources/leiningen/new/app/gitignore
index 9499b43d8..708f60f6e 100644
--- a/resources/leiningen/new/app/gitignore
+++ b/resources/leiningen/new/app/gitignore
@@ -6,4 +6,6 @@ pom.xml.asc
 *.jar
 *.class
 /.lein-*
-/.nrepl-port
\ No newline at end of file
+/.nrepl-port
+.hgignore
+.hg/
\ No newline at end of file
diff --git a/resources/leiningen/new/app/hgignore b/resources/leiningen/new/app/hgignore
new file mode 100644
index 000000000..8881fab1b
--- /dev/null
+++ b/resources/leiningen/new/app/hgignore
@@ -0,0 +1,12 @@
+syntax: glob
+target/**
+classes/**
+checkouts/**
+pom.xml
+pom.xml.asc
+*.jar
+*.class
+/.lein-*
+/.nrepl-port
+.gitignore
+.git/**
\ No newline at end of file
diff --git a/resources/leiningen/new/default/gitignore b/resources/leiningen/new/default/gitignore
index 9499b43d8..708f60f6e 100644
--- a/resources/leiningen/new/default/gitignore
+++ b/resources/leiningen/new/default/gitignore
@@ -6,4 +6,6 @@ pom.xml.asc
 *.jar
 *.class
 /.lein-*
-/.nrepl-port
\ No newline at end of file
+/.nrepl-port
+.hgignore
+.hg/
\ No newline at end of file
diff --git a/resources/leiningen/new/default/hgignore b/resources/leiningen/new/default/hgignore
new file mode 100644
index 000000000..8881fab1b
--- /dev/null
+++ b/resources/leiningen/new/default/hgignore
@@ -0,0 +1,12 @@
+syntax: glob
+target/**
+classes/**
+checkouts/**
+pom.xml
+pom.xml.asc
+*.jar
+*.class
+/.lein-*
+/.nrepl-port
+.gitignore
+.git/**
\ No newline at end of file
diff --git a/resources/leiningen/new/plugin/gitignore b/resources/leiningen/new/plugin/gitignore
index 9499b43d8..708f60f6e 100644
--- a/resources/leiningen/new/plugin/gitignore
+++ b/resources/leiningen/new/plugin/gitignore
@@ -6,4 +6,6 @@ pom.xml.asc
 *.jar
 *.class
 /.lein-*
-/.nrepl-port
\ No newline at end of file
+/.nrepl-port
+.hgignore
+.hg/
\ No newline at end of file
diff --git a/resources/leiningen/new/plugin/hgignore b/resources/leiningen/new/plugin/hgignore
new file mode 100644
index 000000000..8881fab1b
--- /dev/null
+++ b/resources/leiningen/new/plugin/hgignore
@@ -0,0 +1,12 @@
+syntax: glob
+target/**
+classes/**
+checkouts/**
+pom.xml
+pom.xml.asc
+*.jar
+*.class
+/.lein-*
+/.nrepl-port
+.gitignore
+.git/**
\ No newline at end of file
diff --git a/resources/leiningen/new/template/gitignore b/resources/leiningen/new/template/gitignore
index 9499b43d8..708f60f6e 100644
--- a/resources/leiningen/new/template/gitignore
+++ b/resources/leiningen/new/template/gitignore
@@ -6,4 +6,6 @@ pom.xml.asc
 *.jar
 *.class
 /.lein-*
-/.nrepl-port
\ No newline at end of file
+/.nrepl-port
+.hgignore
+.hg/
\ No newline at end of file
diff --git a/resources/leiningen/new/template/hgignore b/resources/leiningen/new/template/hgignore
new file mode 100644
index 000000000..8881fab1b
--- /dev/null
+++ b/resources/leiningen/new/template/hgignore
@@ -0,0 +1,12 @@
+syntax: glob
+target/**
+classes/**
+checkouts/**
+pom.xml
+pom.xml.asc
+*.jar
+*.class
+/.lein-*
+/.nrepl-port
+.gitignore
+.git/**
\ No newline at end of file
diff --git a/src/leiningen/new/app.clj b/src/leiningen/new/app.clj
index c4ff450b8..bce27d414 100644
--- a/src/leiningen/new/app.clj
+++ b/src/leiningen/new/app.clj
@@ -21,6 +21,7 @@
              ["README.md" (render "README.md" data)]
              ["doc/intro.md" (render "intro.md" data)]
              [".gitignore" (render "gitignore" data)]
+             [".hgignore" (render "hgignore" data)]
              ["src/{{nested-dirs}}.clj" (render "core.clj" data)]
              ["test/{{nested-dirs}}_test.clj" (render "test.clj" data)]
              ["LICENSE" (render "LICENSE" data)]
diff --git a/src/leiningen/new/default.clj b/src/leiningen/new/default.clj
index 88633b348..f9a8b1926 100644
--- a/src/leiningen/new/default.clj
+++ b/src/leiningen/new/default.clj
@@ -25,6 +25,7 @@ Accepts a group id in the project name: `lein new foo.bar/baz`"
              ["README.md" (render "README.md" data)]
              ["doc/intro.md" (render "intro.md" data)]
              [".gitignore" (render "gitignore" data)]
+             [".hgignore" (render "hgignore" data)]
              ["src/{{nested-dirs}}.clj" (render "core.clj" data)]
              ["test/{{nested-dirs}}_test.clj" (render "test.clj" data)]
              ["LICENSE" (render "LICENSE" data)]
diff --git a/src/leiningen/new/plugin.clj b/src/leiningen/new/plugin.clj
index 459507130..9a12cff7c 100644
--- a/src/leiningen/new/plugin.clj
+++ b/src/leiningen/new/plugin.clj
@@ -18,5 +18,6 @@
              ["project.clj" (render "project.clj" data)]
              ["README.md" (render "README.md" data)]
              [".gitignore" (render "gitignore" data)]
+             [".hgignore" (render "hgignore" data)]
              ["src/leiningen/{{sanitized}}.clj" (render "name.clj" data)]
              ["LICENSE" (render "LICENSE" data)])))
diff --git a/src/leiningen/new/template.clj b/src/leiningen/new/template.clj
index e2ec9f9c5..e1e37086f 100644
--- a/src/leiningen/new/template.clj
+++ b/src/leiningen/new/template.clj
@@ -15,6 +15,7 @@
              ["README.md" (render "README.md" data)]
              ["project.clj" (render "project.clj" data)]
              [".gitignore" (render "gitignore" data)]
+             [".hgignore" (render "hgignore" data)]
              ["src/leiningen/new/{{sanitized}}.clj" (render "temp.clj" data)]
              ["resources/leiningen/new/{{sanitized}}/foo.clj" (render "foo.clj")]
              ["LICENSE" (render "LICENSE" data)])))
diff --git a/test/leiningen/test/new.clj b/test/leiningen/test/new.clj
index 147206e1d..e31c25886 100644
--- a/test/leiningen/test/new.clj
+++ b/test/leiningen/test/new.clj
@@ -7,8 +7,8 @@
 (deftest test-new-with-just-project-name
   (leiningen.new/new nil "test-new-proj")
   (is (= #{"README.md" "project.clj" "resources" "src" "core.clj" "test"
-           "doc" "intro.md" "test_new_proj" "core_test.clj" ".gitignore"
-           "LICENSE"}
+           "doc" "intro.md" "test_new_proj" "core_test.clj" ".gitignore" 
+           ".hgignore" "LICENSE"}
          (set (map (memfn getName) (rest (file-seq (file "test-new-proj")))))))
   (delete-file-recursively (file "test-new-proj") :silently))
 
@@ -16,7 +16,7 @@
   (leiningen.new/new nil "orgname/a-project")
   (is (= #{"src" "a_project_test.clj" "project.clj" "a_project.clj" "orgname"
            "resources" "test" ".gitignore" "README.md" "doc" "intro.md"
-           "LICENSE"}
+           "LICENSE" ".hgignore"}
          (set (map (memfn getName)
                    (rest (file-seq (file "a-project")))))))
   (delete-file-recursively (file "a-project") :silently))
@@ -25,7 +25,7 @@
   (leiningen.new/new nil "default" "test-new-proj")
   (is (= #{"README.md" "project.clj" "src" "core.clj" "test" "resources"
            "doc" "intro.md" "test_new_proj" "core_test.clj" ".gitignore"
-           "LICENSE"}
+           "LICENSE" ".hgignore"}
          (set (map (memfn getName) (rest (file-seq (file "test-new-proj")))))))
   (delete-file-recursively (file "test-new-proj") :silently))
 
@@ -33,14 +33,14 @@
   (leiningen.new/new nil "app" "test-new-app")
   (is (= #{"README.md" "project.clj" "src" "core.clj" "test" "resources"
            "doc" "intro.md" "test_new_app" "core_test.clj" ".gitignore"
-           "LICENSE"}
+           "LICENSE" ".hgignore"}
          (set (map (memfn getName) (rest (file-seq (file "test-new-app")))))))
   (delete-file-recursively (file "test-new-app") :silently))
 
 (deftest test-new-with-plugin-template
   (leiningen.new/new nil "plugin" "test-new-plugin")
   (is (= #{"README.md" "project.clj" "src" "leiningen" "test_new_plugin.clj" ".gitignore"
-           "LICENSE"}
+           "LICENSE" ".hgignore"}
          (set (map (memfn getName) (rest (file-seq (file "test-new-plugin")))))))
   (delete-file-recursively (file "test-new-plugin") :silently))
 
@@ -48,7 +48,7 @@
   (leiningen.new/new nil "template" "test-new-template")
   (is (= #{"README.md" "project.clj" "src" "leiningen" "new" "resources"
            "test_new_template.clj" "test_new_template" "foo.clj" ".gitignore"
-           "LICENSE"}
+           "LICENSE" ".hgignore"}
          (set (map (memfn getName) (rest (file-seq (file "test-new-template")))))))
   (delete-file-recursively (file "test-new-template") :silently))
 
@@ -84,7 +84,7 @@
   (leiningen.new/new nil "test-new-proj" "--to-dir" "my-proj")
   (is (= #{"README.md" "project.clj" "src" "core.clj" "test" "resources"
            "doc" "intro.md" "test_new_proj" "core_test.clj" ".gitignore"
-           "LICENSE"}
+           "LICENSE" ".hgignore"}
          (set (map (memfn getName) (rest (file-seq (file "my-proj")))))))
   (delete-file-recursively (file "my-proj") :silently))
 
@@ -93,7 +93,7 @@
   (leiningen.new/new nil "test-new-proj" "--force")
   (is (= #{"README.md" "project.clj" "src" "core.clj" "test" "resources"
            "doc" "intro.md" "test_new_proj" "core_test.clj" ".gitignore"
-           "LICENSE"}
+           "LICENSE" ".hgignore"}
          (set (map (memfn getName) (rest (file-seq (file "test-new-proj")))))))
   (delete-file-recursively (file "test-new-proj") :silently))
 
@@ -102,7 +102,7 @@
   (leiningen.new/new nil "test-new-proj" "--to-dir" "my-proj" "--force")
   (is (= #{"README.md" "project.clj" "src" "core.clj" "test" "resources"
            "doc" "intro.md" "test_new_proj" "core_test.clj" ".gitignore"
-           "LICENSE"}
+           "LICENSE" ".hgignore"}
          (set (map (memfn getName) (rest (file-seq (file "my-proj")))))))
   (delete-file-recursively (file "my-proj") :silently))
 
@@ -117,7 +117,7 @@
     (leiningen.new/new nil "test-new-proj")
     (is (= #{"README.md" "project.clj" "src" "core.clj" "test" "resources"
              "doc" "intro.md" "test_new_proj" "core_test.clj" ".gitignore"
-             "LICENSE"}
+             "LICENSE" ".hgignore"}
            (set (map (memfn getName) (rest (file-seq (file new-pwd "test-new-proj")))))))
     (System/setProperty "leiningen.original.pwd" original-pwd)
     (delete-file-recursively (file new-pwd) :silently)))