Index: libsvn_client/merge.c
===================================================================
--- libsvn_client/merge.c	(revision 30448)
+++ libsvn_client/merge.c	(working copy)
@@ -2287,59 +2287,64 @@
             APR_ARRAY_IDX(children_with_mergeinfo, i, 
                           svn_client__merge_path_t *);
 
-          if (!child || child->absent || (child->remaining_ranges->nelts == 0))
+          if (!child || child->absent)
             continue;
 
-          range = APR_ARRAY_IDX(child->remaining_ranges, 0,
-                                svn_merge_range_t *);
-          if (range->start == default_start)
+          if (child->remaining_ranges->nelts)
             {
-              continue;
-            }
-          else
-            {
-              /* While we need to describe subtrees requiring different merge
-                 ranges than TARGET_WCPATH will have applied, we don't need to
-                 describe a subtree's subtree if that latter is having the
-                 same range applied as the former. */
-              int j;
-              svn_client__merge_path_t *parent = NULL;
-              
-              /* Does CHILD have a parent with mergeinfo other
-                 than TARGET_WCPATH? */
-              for (j = i - 1; j > 0; j--)
+              range = APR_ARRAY_IDX(child->remaining_ranges, 0,
+                                    svn_merge_range_t *);
+              if (range->start == default_start)
                 {
-                  svn_client__merge_path_t *potential_parent =
-                    APR_ARRAY_IDX(children_with_mergeinfo, j,
-                                  svn_client__merge_path_t *);
-                  if (svn_path_is_ancestor(potential_parent->path,
-                                           child->path))
+                  continue;
+                }
+              else
+                {
+                  /* While we need to describe subtrees requiring different merge
+                     ranges than TARGET_WCPATH will have applied, we don't need to
+                     describe a subtree's subtree if that latter is having the
+                     same range applied as the former. */
+                  int j;
+                  svn_client__merge_path_t *parent = NULL;
+                  
+                  /* Does CHILD have a parent with mergeinfo other
+                     than TARGET_WCPATH? */
+                  for (j = i - 1; j > 0; j--)
                     {
-                      parent = potential_parent;
-                      break;
+                      svn_client__merge_path_t *potential_parent =
+                        APR_ARRAY_IDX(children_with_mergeinfo, j,
+                                      svn_client__merge_path_t *);
+                      if (svn_path_is_ancestor(potential_parent->path,
+                                               child->path))
+                        {
+                          parent = potential_parent;
+                          break;
+                        }
                     }
-                }
 
-              /* CHILD does have a parent with mergeinfo, if CHILD's first
-                 remaining range is the same as its parent there is no need
-                 to describe it separately. */
-              if (parent && parent->remaining_ranges->nelts != 0)
-                {
-                  svn_merge_range_t *parent_range =
-                    APR_ARRAY_IDX(parent->remaining_ranges, 0,
-                                  svn_merge_range_t *);
-                  svn_merge_range_t *child_range =
-                    APR_ARRAY_IDX(child->remaining_ranges, 0,
-                                  svn_merge_range_t *);
-                  if (parent_range->start == child_range->start)
-                    continue;
+                  /* CHILD does have a parent with mergeinfo, if CHILD's first
+                     remaining range is the same as its parent there is no need
+                     to describe it separately. */
+                  if (parent && parent->remaining_ranges->nelts != 0)
+                    {
+                      svn_merge_range_t *parent_range =
+                        APR_ARRAY_IDX(parent->remaining_ranges, 0,
+                                      svn_merge_range_t *);
+                      svn_merge_range_t *child_range =
+                        APR_ARRAY_IDX(child->remaining_ranges, 0,
+                                      svn_merge_range_t *);
+                      if (parent_range->start == child_range->start)
+                        continue;
+                    }
                 }
             }
 
           child_repos_path = child->path +
             (target_wcpath_len ? target_wcpath_len + 1 : 0);
 
-          if ((is_rollback && (range->start < revision2))
+          if ((child->remaining_ranges->nelts == 0) /* Nothing to merge to
+                                                       this child. */
+              || (is_rollback && (range->start < revision2))
               || (!is_rollback && (range->start > revision2)))
             {
               SVN_ERR(reporter->set_path(report_baton, child_repos_path,
Index: tests/cmdline/merge_tests.py
===================================================================
--- tests/cmdline/merge_tests.py	(revision 30448)
+++ tests/cmdline/merge_tests.py	(working copy)
@@ -4301,8 +4301,6 @@
                                         expected_status)
   os.chdir(saved_cwd)
 
-  # Marked as XFail until
-  # http://subversion.tigris.org/issues/show_bug.cgi?id=2821#desc22 is fixed.
 def avoid_repeated_merge_on_subtree_with_merge_info(sbox):
   "use subtree's mergeinfo to avoid repeated merge"
   # Create deep trees A/B/F/E and A/B/F/E1 and copy A/B to A/copy-of-B
@@ -10877,7 +10875,7 @@
               merge_conflict_markers_matching_eol,
               merge_eolstyle_handling,
               avoid_repeated_merge_using_inherited_merge_info,
-              XFail(avoid_repeated_merge_on_subtree_with_merge_info),
+              avoid_repeated_merge_on_subtree_with_merge_info,
               obey_reporter_api_semantics_while_doing_subtree_merges,
               SkipUnless(mergeinfo_inheritance,
                          server_has_mergeinfo),