--- a/hgext3rd/evolve/evolvecmd.py	Thu Jun 07 22:45:54 2018 +0530
+++ b/hgext3rd/evolve/evolvecmd.py	Thu Jun 07 22:59:39 2018 +0530
@@ -451,15 +451,19 @@
 
     # relocate the other divergent if required
     if relocatereq:
-        evolvestate['current'] = other.node()
         # relocating will help us understand during the time of conflicts that
         # whether conflicts occur at reloacting or they occured at merging
         # content divergent changesets
         evolvestate['relocating'] = True
         ui.status(_('rebasing "other" content-divergent changeset %s on'
                     ' %s\n' % (other, divergent.p1())))
-        newother = relocate(repo, other, divergent.p1(), evolvestate,
-                            keepbranch=True)
+        try:
+            newother = relocate(repo, other, divergent.p1(), evolvestate,
+                                keepbranch=True)
+        except MergeFailure:
+            evolvestate['current'] = other.node()
+            evolvestate.save()
+            raise
         other = repo[newother]
         evolvestate['relocating'] = False
         evolvestate['relocated'] = other.node()

--- a/tests/test-evolve-content-divergence.t	Thu Jun 07 22:45:54 2018 +0530
+++ b/tests/test-evolve-content-divergence.t	Thu Jun 07 22:59:39 2018 +0530
@@ -636,9 +636,11 @@
   $ hg rebase -r . -d bbaca013758a --config experimental.evolution.allowdivergence=True
   rebasing 21:884c9d1a1a84 "added z"
   2 new content-divergent changesets
+  $ echo bar > z
+  $ hg amend
 
   $ hg glog
-  @  23:478a0057fd1a added z
+  @  24:d2eca78cc588 added z
   |   () [bar] draft
   | *  22:3e22a949fe7d added z
   | |   () [default] draft
@@ -658,7 +660,7 @@
       () [default] draft
 
   $ hg evolve --content-divergent
-  merge:[23] added z
+  merge:[24] added z
   with: [22] added z
   base: [21] added z
   rebasing "other" content-divergent changeset 3e22a949fe7d on bbaca013758a
@@ -686,28 +688,47 @@
   $ echo foo > y
   $ hg resolve -m
   (no more unresolved files)
+  continue: hg evolve --continue
 
-XXX: wat?
   $ hg evolve --continue
-  abort: no interrupted evolve to continue
-  [255]
+  working directory is now at a15eb4e32166
 
   $ hg glog
-  *  23:478a0057fd1a added z
+  @  25:a15eb4e32166 added z
+  |   () [default] draft
+  o  20:bbaca013758a added y
   |   () [bar] draft
-  | *  22:3e22a949fe7d added z
-  | |   () [default] draft
-  @ |  20:bbaca013758a added y
-  | |   () [bar] draft
-  o |  14:be41fdcd0ee1 added foo to x
-  | |   () [bar] draft
-  o |  9:b6b20b8eefdc added d
-  | |   () [default] draft
-  o |  8:7c46f743e62f added c
-  |/    () [default] draft
+  o  14:be41fdcd0ee1 added foo to x
+  |   () [bar] draft
+  o  9:b6b20b8eefdc added d
+  |   () [default] draft
+  o  8:7c46f743e62f added c
+  |   () [default] draft
   o  5:7ed0642d644b added b
   |   () [default] draft
   o  1:c7586e2a9264 added a
   |   () [default] draft
   o  0:8fa14d15e168 added hgignore
       () [default] draft
+
+XXX: z should have bar inside, the merge definitely did not happen
+  $ hg exp
+  # HG changeset patch
+  # User test
+  # Date 0 0
+  #      Thu Jan 01 00:00:00 1970 +0000
+  # Node ID a15eb4e32166b0652fdec4c1dd30c9d668323bac
+  # Parent  bbaca013758a55364955939e2d2e4536cb8d05cf
+  added z
+  
+  diff -r bbaca013758a -r a15eb4e32166 y
+  --- a/y	Thu Jan 01 00:00:00 1970 +0000
+  +++ b/y	Thu Jan 01 00:00:00 1970 +0000
+  @@ -1,1 +1,1 @@
+  -watbar
+  +foo
+  diff -r bbaca013758a -r a15eb4e32166 z
+  --- /dev/null	Thu Jan 01 00:00:00 1970 +0000
+  +++ b/z	Thu Jan 01 00:00:00 1970 +0000
+  @@ -0,0 +1,1 @@
+  +z