diff --git a/meta/conf/bitbake.conf b/meta/conf/bitbake.conf
index 5aadf6e707..880a91826b 100644
--- a/meta/conf/bitbake.conf
+++ b/meta/conf/bitbake.conf
@@ -543,6 +543,9 @@ HOSTTOOLS_NONFATAL += "bzr"
 # Used by ssh fetcher
 HOSTTOOLS_NONFATAL += "scp"
 
+# Used by Mercurial fetcher
+HOSTTOOLS_NONFATAL += "hg"
+
 # Link to git-lfs if present
 HOSTTOOLS_NONFATAL += "git-lfs"