diff --git a/dev-vcs/mercurial/Manifest b/dev-vcs/mercurial/Manifest
index 2523442da4149..f9f2d5de96fd2 100644
--- a/dev-vcs/mercurial/Manifest
+++ b/dev-vcs/mercurial/Manifest
@@ -1,3 +1,4 @@
 DIST mercurial-3.8.4.tar.gz 4775341 SHA256 4b2e3ef19d34fa1d781cb7425506a05d4b6b1172bab69d6ea78874175fdf3da6 SHA512 2ee785f631f9ae346e10ca77251a9ce6d3dacd598588c39f1a69ce1f4b668866f6109d682428512c37c300b26741b74672195538d66845e85cfff5ead886cf4c WHIRLPOOL 1f0a12cc6d00f3544ab00e011a9ff9308fe1652c0598045ddba2a41ba17b55c291da200bce85d4c600d673b8746e936c441ffa7398ad810d1069bd97fb32f2db
 DIST mercurial-4.1.1.tar.gz 5132169 SHA256 63571be1202f83c72041eb8ca2a2ebaeda284d2031fd708919fc610589d3359e SHA512 b076336a10d524e85a7eb46e0da7b1b5adb34ca377ec162ebf0b3fc1f3749db10bd9144ce046dda63aa0e6ad65d10e288919d65a88d5a9346b26a47d4b21bd49 WHIRLPOOL a5679e03249dbb840de08ec024afa45f4023b6e001abb0a26960d135aa05ca327e1ee6222c9cdcc99af343168a93f5016346bd19624fd83c608a81dd9f078500
+DIST mercurial-4.1.2.tar.gz 5133417 SHA256 09415253fb409a77e19b9951532a3c22c4e07e74bab80652527064617daab194 SHA512 32b59d23d6b911b7a7e9c9c7659457daf2eba771d5170ad5a44a068d7941939e1d68c72c847e488bf26c14392e5d7ee25e5f660e0330250d0685acce40552745 WHIRLPOOL 33f9b284334f2a35f52e998842ebb71c515f22dc3429f93626aa2dcb05b892f83ae8352068f4ef8a7c4a89f2f3bacec248bd8b310b29250cdc2092af9dfeae81
 DIST mercurial-4.1.tar.gz 5125009 SHA256 7b33c32cdd1d518bc2e2ae223e6ef63c486cf52e9d01a45b99cf8eab7bea5274 SHA512 02e4aabe47473194961870909d4512a4be6814cccb51b727dfa9a34dd0aa5f92bfad7b03e6b58ce6c7e2531df52dac530f02264df28dcfc801036fe103cd4471 WHIRLPOOL 9fc1bfdc0f1515122edaa0d342427709e4a3aa87dcd6315d33328fed25cb5e6aad143774e294363db33f38dda2aa87c4eb4a785efd55550768abca4422850c1f
diff --git a/dev-vcs/mercurial/mercurial-4.1.2.ebuild b/dev-vcs/mercurial/mercurial-4.1.2.ebuild
new file mode 100644
index 0000000000000..a04546c6f07e9
--- /dev/null
+++ b/dev-vcs/mercurial/mercurial-4.1.2.ebuild
@@ -0,0 +1,134 @@
+# Copyright 1999-2017 Gentoo Foundation
+# Distributed under the terms of the GNU General Public License v2
+
+EAPI=6
+
+PYTHON_COMPAT=( python2_7 )
+PYTHON_REQ_USE="threads"
+
+inherit bash-completion-r1 elisp-common eutils distutils-r1 flag-o-matic
+
+DESCRIPTION="Scalable distributed SCM"
+HOMEPAGE="https://www.mercurial-scm.org/"
+SRC_URI="https://www.mercurial-scm.org/release/${P}.tar.gz"
+
+LICENSE="GPL-2"
+SLOT="0"
+KEYWORDS="~alpha ~amd64 ~arm ~arm64 ~hppa ~ia64 ~mips ~ppc ~ppc64 ~sparc ~x86 ~ppc-aix ~amd64-fbsd ~x86-fbsd ~amd64-linux ~arm-linux ~x86-linux ~ppc-macos ~x64-macos ~x86-macos ~sparc-solaris ~sparc64-solaris ~x64-solaris ~x86-solaris"
+IUSE="bugzilla emacs gpg test tk"
+
+RDEPEND="bugzilla? ( dev-python/mysql-python[${PYTHON_USEDEP}] )
+	gpg? ( app-crypt/gnupg )
+	tk? ( dev-lang/tk )
+	app-misc/ca-certificates"
+DEPEND="emacs? ( virtual/emacs )
+	test? ( app-arch/unzip
+		dev-python/pygments[${PYTHON_USEDEP}] )"
+
+SITEFILE="70${PN}-gentoo.el"
+
+PATCHES=( "${FILESDIR}/${PN}-3.0.1-po_fixes.patch" )
+
+python_prepare_all() {
+	# fix up logic that won't work in Gentoo Prefix (also won't outside in
+	# certain cases), bug #362891
+	sed -i -e 's:xcodebuild:nocodebuild:' setup.py || die
+
+	distutils-r1_python_prepare_all
+}
+
+python_configure_all() {
+	strip-flags -ftracer -ftree-vectorize
+	# Note: make it impl-conditional if py3 is supported
+	append-flags -fno-strict-aliasing
+
+	"${PYTHON}" setup.py build_mo || die
+}
+
+python_compile_all() {
+	rm -r contrib/{win32,macosx} || die
+	if use emacs; then
+		cd contrib || die
+		elisp-compile mercurial.el || die "elisp-compile failed!"
+	fi
+}
+
+python_install_all() {
+	distutils-r1_python_install_all
+
+	newbashcomp contrib/bash_completion hg
+
+	insinto /usr/share/zsh/site-functions
+	newins contrib/zsh_completion _hg
+
+	rm -f doc/*.?.txt
+	dodoc CONTRIBUTORS
+	cp hgweb*.cgi "${ED}"/usr/share/doc/${PF}/ || die
+
+	dobin hgeditor
+	dobin contrib/hgk
+	python_foreach_impl python_doscript contrib/hg-ssh
+
+	if use emacs; then
+		elisp-install ${PN} contrib/mercurial.el* || die "elisp-install failed!"
+		elisp-site-file-install "${FILESDIR}"/${SITEFILE}
+	fi
+
+	local RM_CONTRIB=(hgk hg-ssh bash_completion zsh_completion wix buildrpm plan9
+	                  *.el mercurial.spec)
+	for f in ${RM_CONTRIB[@]}; do
+		rm -r contrib/$f || die
+	done
+
+	dodoc -r contrib
+	docompress -x /usr/share/doc/${PF}/contrib
+	doman doc/*.?
+
+	insinto /etc/mercurial/hgrc.d
+	doins "${FILESDIR}/cacerts.rc"
+}
+
+src_test() {
+	pushd tests &>/dev/null || die
+	rm -rf *svn*			# Subversion tests fail with 1.5
+	rm -f test-archive*		# Fails due to verbose tar output changes
+	rm -f test-convert-baz*		# GNU Arch baz
+	rm -f test-convert-cvs*		# CVS
+	rm -f test-convert-darcs*	# Darcs
+	rm -f test-convert-git*		# git
+	rm -f test-convert-mtn*		# monotone
+	rm -f test-convert-tla*		# GNU Arch tla
+	#rm -f test-doctest*		# doctest always fails with python 2.5.x
+	rm -f test-largefiles*		# tends to time out
+
+	popd &>/dev/null || die
+	distutils-r1_src_test
+}
+
+python_test() {
+	local TEST_DIR
+
+	rm -rf "${TMPDIR}"/test
+	distutils_install_for_testing
+	cd tests || die
+	"${PYTHON}" run-tests.py --verbose \
+		--tmpdir="${TMPDIR}"/test \
+		--with-hg="${TEST_DIR}"/scripts/hg \
+		|| die "Tests fail with ${EPYTHON}"
+}
+
+pkg_postinst() {
+	use emacs && elisp-site-regen
+
+	elog "If you want to convert repositories from other tools using convert"
+	elog "extension please install correct tool:"
+	elog "  dev-vcs/cvs"
+	elog "  dev-vcs/darcs"
+	elog "  dev-vcs/git"
+	elog "  dev-vcs/monotone"
+	elog "  dev-vcs/subversion"
+}
+
+pkg_postrm() {
+	use emacs && elisp-site-regen
+}