diff --git a/src/vs/workbench/parts/files/browser/files.contribution.ts b/src/vs/workbench/parts/files/browser/files.contribution.ts
index 7e25315a3e8a4bfdd042e36e619cd33c80f770e0..96a7d8af4d1655076c64d2f9b7bebcfca2dce17c 100644
--- a/src/vs/workbench/parts/files/browser/files.contribution.ts
+++ b/src/vs/workbench/parts/files/browser/files.contribution.ts
@@ -167,7 +167,7 @@ configurationRegistry.registerConfiguration({
 		'files.exclude': {
 			'type': 'object',
 			'description': nls.localize('exclude', "Configure glob patterns for excluding files and folders."),
-			'default': { '**/.git': true, '**/.svn': true, '**/.DS_Store': true },
+			'default': { '**/.git': true, '**/.svn': true, '**/.hg': true, '**/.DS_Store': true },
 			'additionalProperties': {
 				'anyOf': [
 					{