diff --git a/pkgs/applications/version-management/mercurial/default.nix b/pkgs/applications/version-management/mercurial/default.nix
index feb1063503ff..b3af90c2a38e 100644
--- a/pkgs/applications/version-management/mercurial/default.nix
+++ b/pkgs/applications/version-management/mercurial/default.nix
@@ -21,11 +21,11 @@ let
 
   self = python3Packages.buildPythonApplication rec {
     pname = "mercurial${lib.optionalString fullBuild "-full"}";
-    version = "6.2.3";
+    version = "6.3.0";
 
     src = fetchurl {
       url = "https://mercurial-scm.org/release/mercurial-${version}.tar.gz";
-      sha256 = "sha256-mNGuAC9orfU9ZcWUf+i3o3n5jPBdm46h9Ad9LKXc6ds=";
+      sha256 = "sha256-iAOZtVSh3mQQFs5fNbiEDXXxjWh7mrHDWNrAWK1m5pg=";
     };
 
     format = "other";
@@ -35,7 +35,7 @@ let
     cargoDeps = if rustSupport then rustPlatform.fetchCargoTarball {
       inherit src;
       name = "mercurial-${version}";
-      sha256 = "sha256-UWYXVPdEMITLNdBjnoo8IuLOGZiwUJL+dqSl26nf5qs=";
+      sha256 = "sha256-VfIZ1bV8bhjjBL4KNjToPuu8gg9TkChziH2rRKhdRXE=";
       sourceRoot = "mercurial-${version}/rust";
     } else null;
     cargoRoot = if rustSupport then "rust" else null;
@@ -149,9 +149,6 @@ let
     # doesn't like the extra setlocale warnings emitted by our bash wrappers
     test-locale.t
 
-    # Python 3.10 error message change https://bz.mercurial-scm.org/show_bug.cgi?id=6643
-    test-http-bad-server.t
-
     # Python 3.10-3.12 deprecation warning: distutils
     # https://bz.mercurial-scm.org/show_bug.cgi?id=6729
     test-hghave.t
@@ -159,6 +156,10 @@ let
     # Python 3.10-3.12 deprecation warning: asyncore
     # https://bz.mercurial-scm.org/show_bug.cgi?id=6727
     test-patchbomb-tls.t
+
+    # Test broken with recent versions of git due to default policy change
+    # https://foss.heptapod.net/mercurial/mercurial-devel/-/merge_requests/302
+    test-convert-git.t
     EOF
 
     export HGTEST_REAL_HG="${mercurial}/bin/hg"