diff --git a/tests/functional/flakes/mercurial.sh b/tests/functional/flakes/mercurial.sh
deleted file mode 100644
index b5756a3ea..000000000
--- a/tests/functional/flakes/mercurial.sh
+++ /dev/null
@@ -1,43 +0,0 @@
-source ./common.sh
-
-[[ $(type -p hg) ]] || skipTest "Mercurial not installed"
-
-flake1Dir=$TEST_ROOT/flake-hg1
-mkdir -p $flake1Dir
-writeSimpleFlake $flake1Dir
-hg init $flake1Dir
-
-nix registry add --registry $registry flake1 hg+file://$flake1Dir
-
-flake2Dir=$TEST_ROOT/flake-hg2
-mkdir -p $flake2Dir
-writeDependentFlake $flake2Dir
-hg init $flake2Dir
-
-hg add $flake1Dir/*
-hg commit --config ui.username=foobar@example.org $flake1Dir -m 'Initial commit'
-
-hg add $flake2Dir/flake.nix
-hg commit --config ui.username=foobar@example.org $flake2Dir -m 'Initial commit'
-
-nix build -o $TEST_ROOT/result hg+file://$flake2Dir
-[[ -e $TEST_ROOT/result/hello ]]
-
-(! nix flake metadata --json hg+file://$flake2Dir | jq -e -r .revision)
-
-nix eval hg+file://$flake2Dir#expr
-
-nix eval hg+file://$flake2Dir#expr
-
-(! nix eval hg+file://$flake2Dir#expr --no-allow-dirty)
-
-(! nix flake metadata --json hg+file://$flake2Dir | jq -e -r .revision)
-
-hg commit --config ui.username=foobar@example.org $flake2Dir -m 'Add lock file'
-
-nix flake metadata --json hg+file://$flake2Dir --refresh | jq -e -r .revision
-nix flake metadata --json hg+file://$flake2Dir
-[[ $(nix flake metadata --json hg+file://$flake2Dir | jq -e -r .revCount) = 2 ]]
-
-nix build -o $TEST_ROOT/result hg+file://$flake2Dir --no-registries --no-allow-dirty
-nix build -o $TEST_ROOT/result hg+file://$flake2Dir --no-use-registries --no-allow-dirty
diff --git a/tests/functional/meson.build b/tests/functional/meson.build
index 07d214c71..cc87cb21b 100644
--- a/tests/functional/meson.build
+++ b/tests/functional/meson.build
@@ -33,7 +33,6 @@ functional_tests_scripts = [
   'init.sh',
   'test-infra.sh',
   'flakes/flakes.sh',
-  'flakes/mercurial.sh',
   'flakes/follow-paths.sh',
   'gc.sh',
   'nix-collect-garbage-d.sh',
diff --git a/tests/functional2/flakes/common.py b/tests/functional2/flakes/common.py
index c58452d95..f3c695362 100644
--- a/tests/functional2/flakes/common.py
+++ b/tests/functional2/flakes/common.py
@@ -1,4 +1,4 @@
-from testlib.utils import FileDeclaration, get_global_asset_pack, CopyTemplate
+from testlib.utils import FileDeclaration, get_global_asset_pack, CopyTemplate, File
 from testlib.environ import environ
 
 
@@ -6,3 +6,14 @@ def simple_flake() -> FileDeclaration:
     return get_global_asset_pack("simple-drv") | {
         "flake.nix": CopyTemplate("assets/simple-flake.nix", {"system": environ.get("system")})
     }
+
+
+def dependent_flake() -> FileDeclaration:
+    return {
+        "flake.nix": File(f"""{{
+          outputs = {{ self, flake1 }}: {{
+            packages.{environ.get("system")}.default = flake1.packages.{environ.get("system")}.default;
+            expr = assert builtins.pathExists ./flake.lock; 123;
+          }};
+        }}""")
+    }
diff --git a/tests/functional2/flakes/test_mercurial.py b/tests/functional2/flakes/test_mercurial.py
new file mode 100644
index 000000000..f03ba131b
--- /dev/null
+++ b/tests/functional2/flakes/test_mercurial.py
@@ -0,0 +1,128 @@
+from testlib.fixtures.nix import Nix
+from testlib.fixtures.command import Command, CommandResult
+from testlib.fixtures.file_helper import with_files
+from testlib.fixtures.env import ManagedEnv
+from testlib.environ import environ
+from pathlib import Path
+import pytest
+from .common import simple_flake, dependent_flake
+from collections.abc import Callable
+import glob
+
+system = environ.get("system")
+
+files = {"flake-hg1": simple_flake(), "flake-hg2": dependent_flake()}
+
+type Hg = Callable[..., CommandResult]
+
+
+@pytest.fixture
+def hg(env: ManagedEnv, command: Callable[..., Command]) -> Hg:
+    env.path.add_program("hg")
+
+    def wrap(*args, **kwargs) -> CommandResult:
+        return command(["hg", *args], **kwargs).run().ok()
+
+    return wrap
+
+
+@pytest.fixture(autouse=True)
+def common_init(nix: Nix, files: Path, hg: Hg):
+    nix.settings.add_xp_feature("nix-command", "flakes")
+    nix.settings.flake_registry = str(nix.env.dirs.test_root / "registry.json")
+
+    hg("init", files / "flake-hg1")
+    nix.nix(
+        [
+            "registry",
+            "add",
+            "--registry",
+            nix.settings.flake_registry,
+            "flake1",
+            f"hg+file://{files}/flake-hg1",
+        ]
+    ).run().ok()
+
+    hg("init", files / "flake-hg2")
+
+    hg("add", *glob.glob(str(files / "flake-hg1/*")))  # noqa PTH207: Path.glob *does the wrong thing*
+    hg(
+        "commit",
+        "--config",
+        "ui.username=foobar@example.org",
+        files / "flake-hg1",
+        "-m",
+        "Initial commit",
+    )
+
+    hg("add", files / "flake-hg2/flake.nix")
+    hg(
+        "commit",
+        "--config",
+        "ui.username=foobar@example.org",
+        files / "flake-hg2",
+        "-m",
+        "Initial commit",
+    )
+
+
+@with_files(files)
+class TestFlakeHg:
+    def test_build(self, nix: Nix, files: Path):
+        nix.nix(["build", f"hg+file://{files}/flake-hg2"]).run().ok()
+        assert (nix.env.dirs.home / "result/hello").exists()
+
+    def test_metadata_dirty(self, nix: Nix, files: Path):
+        metadata = (
+            nix.nix(["flake", "metadata", "--json", f"hg+file://{files}/flake-hg2"]).run().json()
+        )
+        assert "revision" not in metadata
+
+    def test_eval(self, nix: Nix, files: Path):
+        result = nix.nix(["eval", f"hg+file://{files}/flake-hg2#expr"]).run().ok()
+        assert result.stdout_s == "123\n"
+
+    def test_eval_no_dirty(self, nix: Nix, files: Path):
+        result = (
+            nix.nix(["eval", f"hg+file://{files}/flake-hg2#expr", "--no-allow-dirty"])
+            .run()
+            .expect(1)
+        )
+        assert "is unclean" in result.stderr_s
+
+    class TestLocked:
+        @pytest.fixture(autouse=True)
+        def init(self, nix: Nix, files: Path, hg: Hg):
+            nix.nix(["flake", "lock", f"hg+file://{files}/flake-hg2"]).run().ok()
+            hg(
+                "commit",
+                "--config",
+                "ui.username=foobar@example.org",
+                files / "flake-hg2",
+                "-m",
+                "Add lock file",
+            )
+
+        def test_metadata_clean(self, nix: Nix, files: Path):
+            metadata = (
+                nix.nix(["flake", "metadata", "--json", f"hg+file://{files}/flake-hg2"])
+                .run()
+                .json()
+            )
+            assert "revision" in metadata
+
+        def test_metadata_refresh(self, nix: Nix, files: Path):
+            metadata = (
+                nix.nix(
+                    ["flake", "metadata", "--json", f"hg+file://{files}/flake-hg2", "--refresh"]
+                )
+                .run()
+                .json()
+            )
+            assert "revision" in metadata
+            assert metadata["revCount"] == 2
+
+        @pytest.mark.parametrize("arg", ["--no-registries", "--no-use-registries"])
+        def test_build(self, nix: Nix, files: Path, arg: str):
+            nix.nix(["build", f"hg+file://{files}/flake-hg2", arg, "--no-allow-dirty"]).run().ok()
+            assert (nix.env.dirs.home / "result/hello").exists()