diff --git a/wakatime/projects/git.py b/wakatime/projects/git.py
index ae433d5..c8539a6 100644
--- a/wakatime/projects/git.py
+++ b/wakatime/projects/git.py
@@ -13,10 +13,6 @@ import logging
 import os
 
 from .base import BaseProject
-try:
-    from collections import OrderedDict
-except ImportError:
-    from ..packages.ordereddict import OrderedDict
 
 
 log = logging.getLogger(__name__)
diff --git a/wakatime/projects/mercurial.py b/wakatime/projects/mercurial.py
index 4e9ce96..f91ab71 100644
--- a/wakatime/projects/mercurial.py
+++ b/wakatime/projects/mercurial.py
@@ -18,13 +18,41 @@ from .base import BaseProject
 log = logging.getLogger(__name__)
 
 
+# str is unicode in Python3
+try:
+    unicode
+except NameError:
+    unicode = str
+
+
 class Mercurial(BaseProject):
 
     def process(self):
-        return False
+        self.configDir = self._find_hg_config_dir(self.path)
+        return self.configDir is not None
 
     def name(self):
+        if self.configDir:
+            return unicode(os.path.basename(os.path.dirname(self.configDir)))
         return None
 
     def branch(self):
-        return None
+        if self.configDir:
+            branch_file = os.path.join(self.configDir, 'branch')
+            try:
+                with open(branch_file) as fh:
+                    return unicode(fh.readline().strip().rsplit('/', 1)[-1])
+            except IOError:
+                pass
+        return unicode('default')
+
+    def _find_hg_config_dir(self, path):
+        path = os.path.realpath(path)
+        if os.path.isfile(path):
+            path = os.path.split(path)[0]
+        if os.path.isdir(os.path.join(path, '.hg')):
+            return os.path.join(path, '.hg')
+        split_path = os.path.split(path)
+        if split_path[1] == '':
+            return None
+        return self._find_hg_config_dir(split_path[0])