diff --git a/Documentation/git-rebase.txt b/Documentation/git-rebase.txt
index c339c4525c..9d7bcaa38c 100644
--- a/Documentation/git-rebase.txt
+++ b/Documentation/git-rebase.txt
@@ -108,7 +108,6 @@ OPTIONS
 
 --skip::
 	Restart the rebasing process by skipping the current patch.
-	This does not work with the --merge option.
 
 --merge::
 	Use merging strategies to rebase.  When the recursive (default) merge
diff --git a/git-rebase.sh b/git-rebase.sh
index 91594775e6..9ad1c44d48 100755
--- a/git-rebase.sh
+++ b/git-rebase.sh
@@ -59,15 +59,16 @@ continue_merge () {
 
 	if test -n "`git-diff-index HEAD`"
 	then
+		printf "Committed: %0${prec}d" $msgnum
 		git-commit -C "`cat $dotest/current`"
 	else
-		echo "Previous merge succeeded automatically"
+		printf "Already applied: %0${prec}d" $msgnum
 	fi
+	echo ' '`git-rev-list --pretty=oneline -1 HEAD | \
+				sed 's/^[a-f0-9]\+ //'`
 
 	prev_head=`git-rev-parse HEAD^0`
-
 	# save the resulting commit so we can read-tree on it later
-	echo "$prev_head" > "$dotest/cmt.$msgnum.result"
 	echo "$prev_head" > "$dotest/prev_head"
 
 	# onto the next patch:
@@ -82,7 +83,7 @@ call_merge () {
 	rv=$?
 	case "$rv" in
 	0)
-		git-commit -C "$cmt" || die "commit failed: $MRESOLVEMSG"
+		return
 		;;
 	1)
 		test -d "$GIT_DIR/rr-cache" && git-rerere
@@ -100,23 +101,6 @@ call_merge () {
 }
 
 finish_rb_merge () {
-	set -e
-
-	msgnum=1
-	echo "Finalizing rebased commits..."
-	git-reset --hard "`cat $dotest/onto`"
-	end="`cat $dotest/end`"
-	while test "$msgnum" -le "$end"
-	do
-		git-read-tree `cat "$dotest/cmt.$msgnum.result"`
-		git-checkout-index -q -f -u -a
-		git-commit -C "`cat $dotest/cmt.$msgnum`"
-
-		printf "Committed %0${prec}d" $msgnum
-		echo ' '`git-rev-list --pretty=oneline -1 HEAD | \
-					sed 's/^[a-f0-9]\+ //'`
-		msgnum=$(($msgnum + 1))
-	done
 	rm -r "$dotest"
 	echo "All done."
 }
@@ -153,7 +137,18 @@ do
 	--skip)
 		if test -d "$dotest"
 		then
-			die "--skip is not supported when using --merge"
+			prev_head="`cat $dotest/prev_head`"
+			end="`cat $dotest/end`"
+			msgnum="`cat $dotest/msgnum`"
+			msgnum=$(($msgnum + 1))
+			onto="`cat $dotest/onto`"
+			while test "$msgnum" -le "$end"
+			do
+				call_merge "$msgnum"
+				continue_merge
+			done
+			finish_rb_merge
+			exit
 		fi
 		git am -3 --skip --resolvemsg="$RESOLVEMSG"
 		exit
diff --git a/t/t3401-rebase-partial.sh b/t/t3401-rebase-partial.sh
index 32dc9c5e74..360a67060e 100755
--- a/t/t3401-rebase-partial.sh
+++ b/t/t3401-rebase-partial.sh
@@ -37,7 +37,9 @@ test_expect_success \
 test_expect_success \
     'pick top patch from topic branch into master' \
     'git-cherry-pick my-topic-branch^0 &&
-     git-checkout -f my-topic-branch
+     git-checkout -f my-topic-branch &&
+     git-branch master-merge master &&
+     git-branch my-topic-branch-merge my-topic-branch
 '
 
 test_debug \
@@ -50,4 +52,13 @@ test_expect_success \
     'rebase topic branch against new master and check git-am did not get halted' \
     'git-rebase master && test ! -d .dotest'
 
+if test -z "$no_python"
+then
+    test_expect_success \
+	'rebase --merge topic branch that was partially merged upstream' \
+	'git-checkout -f my-topic-branch-merge &&
+	 git-rebase --merge master-merge &&
+	 test ! -d .git/.dotest-merge'
+fi
+
 test_done
diff --git a/t/t3403-rebase-skip.sh b/t/t3403-rebase-skip.sh
new file mode 100755
index 0000000000..8ab63c5276
--- /dev/null
+++ b/t/t3403-rebase-skip.sh
@@ -0,0 +1,61 @@
+#!/bin/sh
+#
+# Copyright (c) 2006 Eric Wong
+#
+
+test_description='git rebase --merge --skip tests'
+
+. ./test-lib.sh
+
+# we assume the default git-am -3 --skip strategy is tested independently
+# and always works :)
+
+if test "$no_python"; then
+	echo "Skipping: no python => no recursive merge"
+	test_done
+	exit 0
+fi
+
+test_expect_success setup '
+	echo hello > hello &&
+	git add hello &&
+	git commit -m "hello" &&
+	git branch skip-reference &&
+
+	echo world >> hello &&
+	git commit -a -m "hello world" &&
+	echo goodbye >> hello &&
+	git commit -a -m "goodbye" &&
+
+	git checkout -f skip-reference &&
+	echo moo > hello &&
+	git commit -a -m "we should skip this" &&
+	echo moo > cow &&
+	git add cow &&
+	git commit -m "this should not be skipped" &&
+	git branch pre-rebase skip-reference &&
+	git branch skip-merge skip-reference
+	'
+
+test_expect_failure 'rebase with git am -3 (default)' 'git rebase master'
+
+test_expect_success 'rebase --skip with am -3' '
+	git reset --hard HEAD &&
+	git rebase --skip
+	'
+test_expect_success 'checkout skip-merge' 'git checkout -f skip-merge'
+
+test_expect_failure 'rebase with --merge' 'git rebase --merge master'
+
+test_expect_success 'rebase --skip with --merge' '
+	git reset --hard HEAD &&
+	git rebase --skip
+	'
+
+test_expect_success 'merge and reference trees equal' \
+	'test -z "`git-diff-tree skip-merge skip-reference`"'
+
+test_debug 'gitk --all & sleep 1'
+
+test_done
+