--- a/hgext3rd/evolve/evolvecmd.py	Sat Mar 24 16:41:14 2018 +0530
+++ b/hgext3rd/evolve/evolvecmd.py	Sat Mar 24 17:21:42 2018 +0530
@@ -1242,6 +1242,8 @@
         if (evolvestate['command'] == 'next' or
             evolvestate['category'] == 'orphan'):
             _completeorphan(ui, repo, evolvestate)
+        elif evolvestate['category'] == 'phasedivergent':
+            _completephasedivergent(ui, repo, evolvestate)
         else:
             repo.ui.status(_("continuing interrupted '%s' resolution is not yet"
                              " supported\n") % evolvestate['category'])
@@ -1265,6 +1267,31 @@
                         evolvestate['skippedrevs'].append(curctx.node())
         return
 
+def _completephasedivergent(ui, repo, evolvestate):
+    """function to complete the interrupted phase-divergence resolution.
+
+    First completes the relocation of the commit and then process resolving
+    phase-divergence"""
+
+    tr = None
+    try:
+        # need to start transaction for bookmark changes
+        tr = repo.transaction('evolve')
+        node = _completerelocation(ui, repo, evolvestate)
+        # resolving conflicts can lead to empty wdir and node can be None in
+        # those cases
+        ctx = repo[evolvestate['current']]
+        newctx = repo[node] if node is not None else repo['.']
+        compat.createmarkers(repo, [(ctx, (newctx,))], operation='evolve')
+
+        # now continuing the phase-divergence resolution part
+        prec = repo[evolvestate['precursor']]
+        _resolvephasedivergent(ui, repo, prec, ctx, newctx)
+        evolvestate['replacements'][ctx.node()] = node
+        tr.close()
+    finally:
+        tr.release()
+
 def _completeorphan(ui, repo, evolvestate):
     """function to complete the interrupted orphan resolution"""
 

--- a/tests/test-evolve-phase-divergence.t	Sat Mar 24 16:41:14 2018 +0530
+++ b/tests/test-evolve-phase-divergence.t	Sat Mar 24 17:21:42 2018 +0530
@@ -814,24 +814,23 @@
   (no more unresolved files)
   continue: hg evolve --continue
 
-XXX: we should handle this correctly here, this is not phase-divergence
-resolution happening
-
   $ hg evolve --continue
-  continuing interrupted 'phasedivergent' resolution is not yet supported
-  working directory is now at 8c2bb6fb44e9
+  evolving 19:5fd38c0de46e "added l to l"
+  computing new diff
+  committed as e3090241a10c
+  working directory is now at e3090241a10c
 
   $ hg glog
-  *  19:5fd38c0de46e added l to l
+  @  21:e3090241a10c phase-divergent update to f3794e5a91dc:
   |   () draft
-  | o  17:f3794e5a91dc added l to l
-  | |   () public
-  | @  16:8c2bb6fb44e9 phase-divergent update to dc88f5aa9bc9:
-  | |   () public
-  | o  12:dc88f5aa9bc9 y to y and foobar to foo
-  | |   () public
-  | o  9:2352021b3785 added x to x
-  |/    (bm) public
+  o  17:f3794e5a91dc added l to l
+  |   () public
+  o  16:8c2bb6fb44e9 phase-divergent update to dc88f5aa9bc9:
+  |   () public
+  o  12:dc88f5aa9bc9 y to y and foobar to foo
+  |   () public
+  o  9:2352021b3785 added x to x
+  |   (bm) public
   o  8:502e73736632 phase-divergent update to b756eb10ea73:
   |   () public
   o  6:b756eb10ea73 added bar to bar
@@ -844,3 +843,27 @@
   |   () public
   o  0:d3873e73d99e init
       () public
+
+  $ hg exp
+  # HG changeset patch
+  # User test
+  # Date 0 0
+  #      Thu Jan 01 00:00:00 1970 +0000
+  # Node ID e3090241a10c320b6132e4673915fd6b19c0de39
+  # Parent  f3794e5a91dc1d4d36fee5c423386b19433a1f48
+  phase-divergent update to f3794e5a91dc:
+  
+  added l to l
+  
+  diff -r f3794e5a91dc -r e3090241a10c l
+  --- a/l	Thu Jan 01 00:00:00 1970 +0000
+  +++ b/l	Thu Jan 01 00:00:00 1970 +0000
+  @@ -1,1 +1,1 @@
+  -l
+  +kl
+  diff -r f3794e5a91dc -r e3090241a10c x
+  --- a/x	Thu Jan 01 00:00:00 1970 +0000
+  +++ b/x	Thu Jan 01 00:00:00 1970 +0000
+  @@ -1,1 +1,1 @@
+  -x
+  +foo