Merge branch 'master' of gitlab.com:gitlab-org/gitlab-ce

107 files changed, 1712 insertions, 879 deletions

diff --git a/CHANGELOG b/CHANGELOG
index 74b41106b97..c0a98522fd4 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -1,6 +1,8 @@
 Please view this file on the master branch, on stable branches it's out of date.
 
 v 7.14.0 (unreleased)
+  - Disable turbolinks when linking to Bitbucket import status (Stan Hu)
+  - Fix broken code import and display error messages if something went wrong with creating project (Stan Hu)
   - Fix corrupted binary files when using API files endpoint (Stan Hu)
   - Show incompatible projects in Bitbucket import status (Stan Hu)
   - Fix coloring of diffs on MR Discussion-tab (Gert Goet)
@@ -43,10 +45,7 @@ v 7.14.0 (unreleased)
   - Remove redis-store TTL monkey patch
   - Add support for CI skipped status
   - Fetch code from forks to refs/merge-requests/:id/head when merge request created
-  - Remove satellites
   - Remove comments and email addresses when publicly exposing ssh keys (Zeger-Jan van de Weg)
-  - Improve MR merge widget text and UI consistency.
-  - Improve text in MR "How To Merge" modal.
   - Cache all events
   - Order commits by date when comparing branches
   - Fix bug causing error when the target branch of a symbolic ref was deleted
@@ -197,7 +196,6 @@ v 7.12.0
   - Add SAML support as an omniauth provider
   - Allow to configure a URL to show after sign out
   - Add an option to automatically sign-in with an Omniauth provider
-  - Better performance for web editor (switched from satellites to rugged)
   - GitLab CI service sends .gitlab-ci.yml in each push call
   - When remove project - move repository and schedule it removal
   - Improve group removing logic
diff --git a/Gemfile.lock b/Gemfile.lock
index 5ba6948cbc1..9c3a8e763a5 100644
--- a/Gemfile.lock
+++ b/Gemfile.lock
@@ -875,4 +875,4 @@ DEPENDENCIES
   wikicloth (= 0.8.1)
 
 BUNDLED WITH
-   1.10.4
+   1.10.5
diff --git a/app/assets/javascripts/merge_request_widget.js.coffee b/app/assets/javascripts/merge_request_widget.js.coffee
index 995a2f24093..762eec63dee 100644
--- a/app/assets/javascripts/merge_request_widget.js.coffee
+++ b/app/assets/javascripts/merge_request_widget.js.coffee
@@ -19,7 +19,7 @@ class @MergeRequestWidget
           when 'merged'
             location.reload()
           else
-            setTimeout(merge_request_widget.mergeInProgress, 2000)
+            setTimeout(merge_request_widget.mergeInProgress, 3000)
       dataType: 'json'
 
   getMergeStatus: ->
@@ -49,8 +49,10 @@ class @MergeRequestWidget
       @setMergeButtonClass('btn-danger')
 
   showCiCoverage: (coverage) ->
-    text = 'Coverage ' + coverage + '%'
-    $('.ci_widget:visible .ci-coverage').text(text)
+    cov_html = $('<span>')
+    cov_html.addClass('ci-coverage')
+    cov_html.text('Coverage ' + coverage + '%')
+    $('.ci_widget:visible').append(cov_html)
 
   setMergeButtonClass: (css_class) ->
     $('.accept_merge_request').removeClass("btn-create").addClass(css_class)
diff --git a/app/assets/stylesheets/pages/merge_requests.scss b/app/assets/stylesheets/pages/merge_requests.scss
index 30bbec7b795..baba6f32129 100644
--- a/app/assets/stylesheets/pages/merge_requests.scss
+++ b/app/assets/stylesheets/pages/merge_requests.scss
@@ -1,15 +1,9 @@
-/**
- * MR -> show: Automerge widget
+
+  /**
+   * MR -> show: Automerge widget
  *
  */
 .mr-state-widget {
-  background: #FAFAFA;
-  margin-bottom: 20px;
-  color: #666;
-  border: 1px solid #e5e5e5;
-  @include box-shadow(0 1px 1px rgba(0, 0, 0, 0.05));
-  @include border-radius(3px);
-
   form {
     margin-bottom: 0;
     .clearfix {
@@ -26,67 +20,16 @@
       display: inline-block;
       margin: 0;
       margin-left: 20px;
-      padding: 5px;
+      padding: 10px 0;
       line-height: 20px;
+      font-weight: bold;
 
       .remove_source_checkbox {
         margin: 0;
+        font-weight: bold;
       }
     }
   }
-
-  .ci_widget {
-    border-bottom: 1px solid #EEE;
-
-    i {
-      margin-right: 4px;
-    }
-
-    &.ci-success {
-      color: $gl-success;
-    }
-
-    &.ci-skipped {
-      background-color: #eee;
-      color: #888;
-    }
-
-    &.ci-pending,
-    &.ci-running {
-      color: $gl-warning;
-    }
-
-    &.ci-failed,
-    &.ci-canceled,
-    &.ci-error {
-      color: $gl-danger;
-    }
-  }
-
-  .mr-widget-body,
-  .ci_widget,
-  .mr-widget-footer {
-    padding: 15px;
-  }
-
-  .mr-widget-body {
-    h4 {
-      font-weight: bold;
-      margin: 5px 0;
-    }
-
-    p:last-child {
-      margin-bottom: 0;
-    }
-  }
-
-  .mr-widget-footer {
-    border-top: 1px solid #EEE;
-  }
-
-  .ci-coverage {
-    float: right;
-  }
 }
 
 @media(min-width: $screen-sm-max) {
@@ -118,10 +61,23 @@
 }
 
 .label-branch {
-  color: #222;
+  @include border-radius(4px);
+  padding: 3px 4px;
+  border: none;
+  background: $hover;
+  color: #333;
   font-family: $monospace_font;
-  font-weight: bold;
+  font-weight: normal;
   overflow: hidden;
+
+  .label-project {
+    @include border-radius-left(4px);
+    padding: 3px 4px;
+    background: #279;
+    position: relative;
+    left: -4px;
+    letter-spacing: -1px;
+  }
 }
 
 .mr-list {
@@ -168,6 +124,64 @@
   display: none;
 }
 
+.mr-state-widget {
+  font-size: 13px;
+  background: #FAFAFA;
+  margin-bottom: 20px;
+  color: #666;
+  border: 1px solid #e5e5e5;
+  @include box-shadow(0 1px 1px rgba(0, 0, 0, 0.05));
+  @include border-radius(3px);
+
+  .ci_widget {
+    padding: 10px 15px;
+    font-size: 15px;
+    border-bottom: 1px solid #EEE;
+
+    &.ci-success {
+      color: $gl-success;
+    }
+
+    &.ci-skipped {
+      background-color: #eee;
+      color: #888;
+    }
+
+    &.ci-pending,
+    &.ci-running {
+      color: $gl-warning;
+    }
+
+    &.ci-failed,
+    &.ci-canceled,
+    &.ci-error {
+      color: $gl-danger;
+    }
+  }
+
+  .mr-widget-body {
+    padding: 10px 15px;
+
+    h4 {
+      font-weight: bold;
+      margin: 5px 0;
+    }
+
+    p:last-child {
+      margin-bottom: 0;
+    }
+  }
+
+  .mr-widget-footer {
+    padding: 10px 15px;
+    border-top: 1px solid #EEE;
+  }
+
+  .ci-coverage {
+    float: right;
+  }
+}
+
 .merge-request-show-labels {
   a {
     margin-right: 5px;
@@ -182,7 +196,3 @@
 .merge-request-form .select2-container {
   width: 250px !important;
 }
-
-#modal_merge_info .modal-dialog {
-  width: 600px;
-}
diff --git a/app/controllers/projects/blob_controller.rb b/app/controllers/projects/blob_controller.rb
index 100d3d3b317..b762518d377 100644
--- a/app/controllers/projects/blob_controller.rb
+++ b/app/controllers/projects/blob_controller.rb
@@ -13,20 +13,27 @@ class Projects::BlobController < Projects::ApplicationController
   before_action :commit, except: [:new, :create]
   before_action :blob, except: [:new, :create]
   before_action :from_merge_request, only: [:edit, :update]
-  before_action :require_branch_head, only: [:edit, :update]
-  before_action :editor_variables, except: [:show, :preview, :diff]
   before_action :after_edit_path, only: [:edit, :update]
+  before_action :require_branch_head, only: [:edit, :update]
 
   def new
     commit unless @repository.empty?
   end
 
   def create
-    result = Files::CreateService.new(@project, current_user, @commit_params).execute
+    file_path = File.join(@path, File.basename(params[:file_name]))
+    result = Files::CreateService.new(
+      @project,
+      current_user,
+      params.merge(new_branch: sanitized_new_branch_name),
+      @ref,
+      file_path
+    ).execute
 
     if result[:status] == :success
       flash[:notice] = "Your changes have been successfully committed"
-      redirect_to namespace_project_blob_path(@project.namespace, @project, File.join(@target_branch, @file_path))
+      ref = sanitized_new_branch_name.presence || @ref
+      redirect_to namespace_project_blob_path(@project.namespace, @project, File.join(ref, file_path))
     else
       flash[:alert] = result[:message]
       render :new
@@ -41,10 +48,22 @@ class Projects::BlobController < Projects::ApplicationController
   end
 
   def update
-    result = Files::UpdateService.new(@project, current_user, @commit_params).execute
+    result = Files::UpdateService.
+      new(
+        @project,
+        current_user,
+        params.merge(new_branch: sanitized_new_branch_name),
+        @ref,
+        @path
+      ).execute
 
     if result[:status] == :success
       flash[:notice] = "Your changes have been successfully committed"
+
+      if from_merge_request
+        from_merge_request.reload_code
+      end
+
       redirect_to after_edit_path
     else
       flash[:alert] = result[:message]
@@ -61,11 +80,12 @@ class Projects::BlobController < Projects::ApplicationController
   end
 
   def destroy
-    result = Files::DeleteService.new(@project, current_user, @commit_params).execute
+    result = Files::DeleteService.new(@project, current_user, params, @ref, @path).execute
 
     if result[:status] == :success
       flash[:notice] = "Your changes have been successfully committed"
-      redirect_to namespace_project_tree_path(@project.namespace, @project, @target_branch)
+      redirect_to namespace_project_tree_path(@project.namespace, @project,
+                                              @ref)
     else
       flash[:alert] = result[:message]
       render :show
@@ -115,6 +135,7 @@ class Projects::BlobController < Projects::ApplicationController
     @id = params[:id]
     @ref, @path = extract_ref(@id)
 
+
   rescue InvalidPathError
     not_found!
   end
@@ -124,8 +145,8 @@ class Projects::BlobController < Projects::ApplicationController
       if from_merge_request
         diffs_namespace_project_merge_request_path(from_merge_request.target_project.namespace, from_merge_request.target_project, from_merge_request) +
           "#file-path-#{hexdigest(@path)}"
-      elsif @target_branch.present?
-        namespace_project_blob_path(@project.namespace, @project, File.join(@target_branch, @path))
+      elsif sanitized_new_branch_name.present?
+        namespace_project_blob_path(@project.namespace, @project, File.join(sanitized_new_branch_name, @path))
       else
         namespace_project_blob_path(@project.namespace, @project, @id)
       end
@@ -139,25 +160,4 @@ class Projects::BlobController < Projects::ApplicationController
   def sanitized_new_branch_name
     @new_branch ||= sanitize(strip_tags(params[:new_branch]))
   end
-
-  def editor_variables
-    @current_branch = @ref
-    @target_branch = (sanitized_new_branch_name || @ref)
-
-    @file_path =
-      if action_name.to_s == 'create'
-        File.join(@path, File.basename(params[:file_name]))
-      else
-        @path
-      end
-
-    @commit_params = {
-      file_path: @file_path,
-      current_branch: @current_branch,
-      target_branch: @target_branch,
-      commit_message: params[:commit_message],
-      file_content: params[:content],
-      file_content_encoding: params[:encoding]
-    }
-  end
 end
diff --git a/app/controllers/projects/compare_controller.rb b/app/controllers/projects/compare_controller.rb
index d9b3adae95b..c5f085c236f 100644
--- a/app/controllers/projects/compare_controller.rb
+++ b/app/controllers/projects/compare_controller.rb
@@ -13,8 +13,13 @@ class Projects::CompareController < Projects::ApplicationController
     base_ref = Addressable::URI.unescape(params[:from])
     @ref = head_ref = Addressable::URI.unescape(params[:to])
 
-    compare_result = CompareService.new.
-      execute(@project, head_ref, @project, base_ref)
+    compare_result = CompareService.new.execute(
+      current_user,
+      @project,
+      head_ref,
+      @project,
+      base_ref
+    )
 
     @commits = compare_result.commits
     @diffs = compare_result.diffs
diff --git a/app/controllers/projects/merge_requests_controller.rb b/app/controllers/projects/merge_requests_controller.rb
index f3054881daf..d1265198318 100644
--- a/app/controllers/projects/merge_requests_controller.rb
+++ b/app/controllers/projects/merge_requests_controller.rb
@@ -1,7 +1,9 @@
+require 'gitlab/satellite/satellite'
+
 class Projects::MergeRequestsController < Projects::ApplicationController
   before_action :module_enabled
   before_action :merge_request, only: [
-    :edit, :update, :show, :diffs, :commits, :merge, :merge_check,
+    :edit, :update, :show, :diffs, :commits, :automerge, :automerge_check,
     :ci_status, :toggle_subscription
   ]
   before_action :closes_issues, only: [:edit, :update, :show, :diffs, :commits]
@@ -135,7 +137,7 @@ class Projects::MergeRequestsController < Projects::ApplicationController
     end
   end
 
-  def merge_check
+  def automerge_check
     if @merge_request.unchecked?
       @merge_request.check_if_can_be_merged
     end
@@ -145,11 +147,11 @@ class Projects::MergeRequestsController < Projects::ApplicationController
     render partial: "projects/merge_requests/widget/show.html.haml", layout: false
   end
 
-  def merge
+  def automerge
     return access_denied! unless @merge_request.can_be_merged_by?(current_user)
 
-    if @merge_request.mergeable?
-      MergeWorker.perform_async(@merge_request.id, current_user.id, params)
+    if @merge_request.automergeable?
+      AutoMergeWorker.perform_async(@merge_request.id, current_user.id, params)
       @status = true
     else
       @status = false
diff --git a/app/helpers/merge_requests_helper.rb b/app/helpers/merge_requests_helper.rb
index f8169b4f288..45ee4fe4135 100644
--- a/app/helpers/merge_requests_helper.rb
+++ b/app/helpers/merge_requests_helper.rb
@@ -61,14 +61,4 @@ module MergeRequestsHelper
       }
     )
   end
-
-  def source_branch_with_namespace(merge_request)
-    if merge_request.for_fork?
-      namespace = link_to(merge_request.source_project_namespace,
-        project_path(merge_request.source_project))
-      namespace + ":#{merge_request.source_branch}"
-    else
-      merge_request.source_branch
-    end
-  end
 end
diff --git a/app/helpers/projects_helper.rb b/app/helpers/projects_helper.rb
index 525a46291f6..ab9b068de05 100644
--- a/app/helpers/projects_helper.rb
+++ b/app/helpers/projects_helper.rb
@@ -231,37 +231,20 @@ module ProjectsHelper
     end
   end
 
+  def readme_path(project)
+    filename_path(project, :readme)
+  end
+
   def changelog_path(project)
-    if project && changelog = project.repository.changelog
-      namespace_project_blob_path(
-        project.namespace,
-        project,
-        tree_join(project.default_branch,
-                  changelog.name)
-      )
-    end
+    filename_path(project, :changelog)
   end
 
   def license_path(project)
-    if project && license = project.repository.license
-      namespace_project_blob_path(
-        project.namespace,
-        project,
-        tree_join(project.default_branch,
-                  license.name)
-      )
-    end
+    filename_path(project, :license)
   end
 
   def version_path(project)
-    if project && version = project.repository.version
-      namespace_project_blob_path(
-        project.namespace,
-        project,
-        tree_join(project.default_branch,
-                  version.name)
-      )
-    end
+    filename_path(project, :version)
   end
 
   def hidden_pass_url(original_url)
@@ -331,4 +314,17 @@ module ProjectsHelper
       count
     end
   end
+
+  private
+
+  def filename_path(project, filename)
+    if project && blob = project.repository.send(filename)
+      namespace_project_blob_path(
+          project.namespace,
+          project,
+          tree_join(project.default_branch,
+                    blob.name)
+      )
+    end
+  end
 end
diff --git a/app/models/merge_request.rb b/app/models/merge_request.rb
index 467b90861f9..324d1795ab4 100644
--- a/app/models/merge_request.rb
+++ b/app/models/merge_request.rb
@@ -41,6 +41,8 @@ class MergeRequest < ActiveRecord::Base
 
   delegate :commits, :diffs, :last_commit, :last_commit_short_sha, to: :merge_request_diff, prefix: nil
 
+  attr_accessor :should_remove_source_branch
+
   # When this attribute is true some MR validation is ignored
   # It allows us to close or modify broken merge requests
   attr_accessor :allow_broken
@@ -55,7 +57,7 @@ class MergeRequest < ActiveRecord::Base
       transition [:reopened, :opened] => :closed
     end
 
-    event :mark_as_merged do
+    event :merge do
       transition [:reopened, :opened, :locked] => :merged
     end
 
@@ -203,10 +205,7 @@ class MergeRequest < ActiveRecord::Base
   end
 
   def check_if_can_be_merged
-    can_be_merged =
-      project.repository.can_be_merged?(source_sha, target_branch)
-
-    if can_be_merged
+    if Gitlab::Satellite::MergeAction.new(self.author, self).can_be_merged?
       mark_as_mergeable
     else
       mark_as_unmergeable
@@ -221,6 +220,18 @@ class MergeRequest < ActiveRecord::Base
     self.target_project.events.where(target_id: self.id, target_type: "MergeRequest", action: Event::CLOSED).last
   end
 
+  def automerge!(current_user, commit_message = nil)
+    return unless automergeable?
+
+    MergeRequests::AutoMergeService.
+      new(target_project, current_user).
+      execute(self, commit_message)
+  end
+
+  def remove_source_branch?
+    self.should_remove_source_branch && !self.source_project.root_ref?(self.source_branch) && !self.for_fork?
+  end
+
   def open?
     opened? || reopened?
   end
@@ -229,11 +240,11 @@ class MergeRequest < ActiveRecord::Base
     title =~ /\A\[?WIP\]?:? /i
   end
 
-  def mergeable?
+  def automergeable?
     open? && !work_in_progress? && can_be_merged?
   end
 
-  def gitlab_merge_status
+  def automerge_status
     if work_in_progress?
       "work_in_progress"
     else
@@ -260,14 +271,14 @@ class MergeRequest < ActiveRecord::Base
   #
   # see "git diff"
   def to_diff(current_user)
-    target_project.repository.diff_text(target_branch, source_sha)
+    Gitlab::Satellite::MergeAction.new(current_user, self).diff_in_satellite
   end
 
   # Returns the commit as a series of email patches.
   #
   # see "git format-patch"
   def to_patch(current_user)
-    target_project.repository.format_patch(target_branch, source_sha)
+    Gitlab::Satellite::MergeAction.new(current_user, self).format_patch
   end
 
   def hook_attrs
@@ -418,30 +429,4 @@ class MergeRequest < ActiveRecord::Base
       "Open"
     end
   end
-
-  def target_sha
-    @target_sha ||= target_project.
-      repository.commit(target_branch).sha
-  end
-
-  def source_sha
-    commits.first.sha
-  end
-
-  def fetch_ref
-    target_project.repository.fetch_ref(
-      source_project.repository.path_to_repo,
-      "refs/heads/#{source_branch}",
-      "refs/merge-requests/#{iid}/head"
-    )
-  end
-
-  def in_locked_state
-    begin
-      lock_mr
-      yield
-    ensure
-      unlock_mr if locked?
-    end
-  end
 end
diff --git a/app/models/merge_request_diff.rb b/app/models/merge_request_diff.rb
index e317c8eac4d..df1c2b78758 100644
--- a/app/models/merge_request_diff.rb
+++ b/app/models/merge_request_diff.rb
@@ -16,8 +16,9 @@ require Rails.root.join("app/models/commit")
 class MergeRequestDiff < ActiveRecord::Base
   include Sortable
 
-  # Prevent store of diff if commits amount more then 500
-  COMMITS_SAFE_SIZE = 500
+  # Prevent store of diff
+  # if commits amount more then 200
+  COMMITS_SAFE_SIZE = 200
 
   attr_reader :commits, :diffs
 
@@ -123,12 +124,12 @@ class MergeRequestDiff < ActiveRecord::Base
     if new_diffs.any?
       if new_diffs.size > Commit::DIFF_HARD_LIMIT_FILES
         self.state = :overflow_diff_files_limit
-        new_diffs = new_diffs.first[Commit::DIFF_HARD_LIMIT_LINES]
+        new_diffs = []
       end
 
       if new_diffs.sum { |diff| diff.diff.lines.count } > Commit::DIFF_HARD_LIMIT_LINES
         self.state = :overflow_diff_lines_limit
-        new_diffs = new_diffs.first[Commit::DIFF_HARD_LIMIT_LINES]
+        new_diffs = []
       end
     end
 
@@ -159,21 +160,12 @@ class MergeRequestDiff < ActiveRecord::Base
   private
 
   def compare_result
-    @compare_result ||=
-      begin
-        # Update ref for merge request
-        merge_request.fetch_ref
-
-        # Get latest sha of branch from source project
-        source_sha = merge_request.source_project.commit(source_branch).sha
-
-        Gitlab::CompareResult.new(
-          Gitlab::Git::Compare.new(
-            merge_request.target_project.repository.raw_repository,
-            merge_request.target_branch,
-            source_sha,
-          )
-        )
-      end
+    @compare_result ||= CompareService.new.execute(
+      merge_request.author,
+      merge_request.source_project,
+      merge_request.source_branch,
+      merge_request.target_project,
+      merge_request.target_branch,
+    )
   end
 end
diff --git a/app/models/namespace.rb b/app/models/namespace.rb
index 161a16ca61c..30ffacadded 100644
--- a/app/models/namespace.rb
+++ b/app/models/namespace.rb
@@ -118,11 +118,12 @@ class Namespace < ActiveRecord::Base
     gitlab_shell.add_namespace(path_was)
 
     if gitlab_shell.mv_namespace(path_was, path)
-      # If repositories moved successfully we need to
-      # send update instructions to users.
+      # If repositories moved successfully we need to remove old satellites
+      # and send update instructions to users.
       # However we cannot allow rollback since we moved namespace dir
       # So we basically we mute exceptions in next actions
       begin
+        gitlab_shell.rm_satellites(path_was)
         send_update_instructions
       rescue
         # Returning false does not rollback after_* transaction but gives
diff --git a/app/models/project.rb b/app/models/project.rb
index 4628f478ca6..3dc1729e812 100644
--- a/app/models/project.rb
+++ b/app/models/project.rb
@@ -520,6 +520,14 @@ class Project < ActiveRecord::Base
     !repository.exists? || repository.empty?
   end
 
+  def ensure_satellite_exists
+    self.satellite.create unless self.satellite.exists?
+  end
+
+  def satellite
+    @satellite ||= Gitlab::Satellite::Satellite.new(self)
+  end
+
   def repo
     repository.raw
   end
@@ -589,11 +597,14 @@ class Project < ActiveRecord::Base
     new_path_with_namespace = File.join(namespace_dir, path)
 
     if gitlab_shell.mv_repository(old_path_with_namespace, new_path_with_namespace)
-      # If repository moved successfully we need to send update instructions to users.
+      # If repository moved successfully we need to remove old satellite
+      # and send update instructions to users.
       # However we cannot allow rollback since we moved repository
       # So we basically we mute exceptions in next actions
       begin
         gitlab_shell.mv_repository("#{old_path_with_namespace}.wiki", "#{new_path_with_namespace}.wiki")
+        gitlab_shell.rm_satellites(old_path_with_namespace)
+        ensure_satellite_exists
         send_move_instructions
         reset_events_cache
       rescue
@@ -691,6 +702,7 @@ class Project < ActiveRecord::Base
   def create_repository
     if forked?
       if gitlab_shell.fork_repository(forked_from_project.path_with_namespace, self.namespace.path)
+        ensure_satellite_exists
         true
       else
         errors.add(:base, 'Failed to fork repository via gitlab-shell')
diff --git a/app/models/project_services/gitlab_ci_service.rb b/app/models/project_services/gitlab_ci_service.rb
index ecdcd48ae60..5aaa4e85cbc 100644
--- a/app/models/project_services/gitlab_ci_service.rb
+++ b/app/models/project_services/gitlab_ci_service.rb
@@ -74,8 +74,6 @@ class GitlabCiService < CiService
     else
       :error
     end
-  rescue Errno::ECONNREFUSED
-    :error
   end
 
   def fork_registration(new_project, private_token)
@@ -105,8 +103,6 @@ class GitlabCiService < CiService
     if response.code == 200 and response["coverage"]
       response["coverage"]
     end
-  rescue Errno::ECONNREFUSED
-    nil
   end
 
   def build_page(sha, ref)
diff --git a/app/models/repository.rb b/app/models/repository.rb
index 46efbede2a2..0a62980f93a 100644
--- a/app/models/repository.rb
+++ b/app/models/repository.rb
@@ -364,83 +364,6 @@ class Repository
     @root_ref ||= raw_repository.root_ref
   end
 
-  def commit_file(user, path, content, message, ref)
-    path[0] = '' if path[0] == '/'
-
-    committer = user_to_comitter(user)
-    options = {}
-    options[:committer] = committer
-    options[:author] = committer
-    options[:commit] = {
-      message: message,
-      branch: ref
-    }
-
-    options[:file] = {
-      content: content,
-      path: path
-    }
-
-    Gitlab::Git::Blob.commit(raw_repository, options)
-  end
-
-  def remove_file(user, path, message, ref)
-    path[0] = '' if path[0] == '/'
-
-    committer = user_to_comitter(user)
-    options = {}
-    options[:committer] = committer
-    options[:author] = committer
-    options[:commit] = {
-      message: message,
-      branch: ref
-    }
-
-    options[:file] = {
-      path: path
-    }
-
-    Gitlab::Git::Blob.remove(raw_repository, options)
-  end
-
-  def user_to_comitter(user)
-    {
-      email: user.email,
-      name: user.name,
-      time: Time.now
-    }
-  end
-
-  def can_be_merged?(source_sha, target_branch)
-    our_commit = rugged.branches[target_branch].target
-    their_commit = rugged.lookup(source_sha)
-
-    if our_commit && their_commit
-      !rugged.merge_commits(our_commit, their_commit).conflicts?
-    else
-      false
-    end
-  end
-
-  def merge(source_sha, target_branch, options = {})
-    our_commit = rugged.branches[target_branch].target
-    their_commit = rugged.lookup(source_sha)
-
-    raise "Invalid merge target" if our_commit.nil?
-    raise "Invalid merge source" if their_commit.nil?
-
-    merge_index = rugged.merge_commits(our_commit, their_commit)
-    return false if merge_index.conflicts?
-
-    actual_options = options.merge(
-      parents: [our_commit, their_commit],
-      tree: merge_index.write_tree(rugged),
-      update_ref: "refs/heads/#{target_branch}"
-    )
-
-    Rugged::Commit.create(rugged, actual_options)
-  end
-
   def search_files(query, ref)
     offset = 2
     args = %W(git grep -i -n --before-context #{offset} --after-context #{offset} #{query} #{ref || root_ref})
@@ -474,11 +397,6 @@ class Repository
     )
   end
 
-  def fetch_ref(source_path, source_ref, target_ref)
-    args = %W(git fetch #{source_path} #{source_ref}:#{target_ref})
-    Gitlab::Popen.popen(args, path_to_repo)
-  end
-
   private
 
   def cache
diff --git a/app/services/base_service.rb b/app/services/base_service.rb
index f00ec7408b6..6d9ed345914 100644
--- a/app/services/base_service.rb
+++ b/app/services/base_service.rb
@@ -31,10 +31,6 @@ class BaseService
     SystemHooksService.new
   end
 
-  def repository
-    project.repository
-  end
-
   # Add an error to the specified model for restricted visibility levels
   def deny_visibility_level(model, denied_visibility_level = nil)
     denied_visibility_level ||= model.visibility_level
diff --git a/app/services/compare_service.rb b/app/services/compare_service.rb
index 70f642baaaa..6aa9df4b194 100644
--- a/app/services/compare_service.rb
+++ b/app/services/compare_service.rb
@@ -1,28 +1,27 @@
-require 'securerandom'
-
 # Compare 2 branches for one repo or between repositories
 # and return Gitlab::CompareResult object that responds to commits and diffs
 class CompareService
-  def execute(source_project, source_branch, target_project, target_branch)
-    source_sha = source_project.commit(source_branch).sha
-
-    # If compare with other project we need to fetch ref first
-    unless target_project == source_project
-      random_string = SecureRandom.hex
-
-      target_project.repository.fetch_ref(
-        source_project.repository.path_to_repo,
-        "refs/heads/#{source_branch}",
-        "refs/tmp/#{random_string}/head"
+  def execute(current_user, source_project, source_branch, target_project, target_branch)
+    # Try to compare branches to get commits list and diffs
+    #
+    # Note: Use satellite only when need to compare between two repos
+    # because satellites are slower than operations on bare repo
+    if target_project == source_project
+      Gitlab::CompareResult.new(
+        Gitlab::Git::Compare.new(
+          target_project.repository.raw_repository,
+          target_branch,
+          source_branch,
+        )
       )
-    end
-
-    Gitlab::CompareResult.new(
-      Gitlab::Git::Compare.new(
-        target_project.repository.raw_repository,
+    else
+      Gitlab::Satellite::CompareAction.new(
+        current_user,
+        target_project,
         target_branch,
-        source_sha,
-      )
-    )
+        source_project,
+        source_branch
+      ).result
+    end
   end
 end
diff --git a/app/services/files/base_service.rb b/app/services/files/base_service.rb
index d7b40ee8906..bd245100955 100644
--- a/app/services/files/base_service.rb
+++ b/app/services/files/base_service.rb
@@ -1,80 +1,17 @@
 module Files
   class BaseService < ::BaseService
-    class ValidationError < StandardError; end
+    attr_reader :ref, :path
 
-    def execute
-      @current_branch = params[:current_branch]
-      @target_branch  = params[:target_branch]
-      @commit_message = params[:commit_message]
-      @file_path      = params[:file_path]
-      @file_content   = if params[:file_content_encoding] == 'base64'
-                          Base64.decode64(params[:file_content])
-                        else
-                          params[:file_content]
-                        end
-
-      # Validate parameters
-      validate
-
-      # Create new branch if it different from current_branch
-      if @target_branch != @current_branch
-        create_target_branch
-      end
-
-      if sha = commit
-        after_commit(sha, @target_branch)
-        success
-      else
-        error("Something went wrong. Your changes were not committed")
-      end
-    rescue ValidationError => ex
-      error(ex.message)
+    def initialize(project, user, params, ref, path = nil)
+      @project, @current_user, @params = project, user, params.dup
+      @ref = ref
+      @path = path
     end
 
     private
 
-    def after_commit(sha, branch)
-      PostCommitService.new(project, current_user).execute(sha, branch)
-    end
-
-    def current_branch
-      @current_branch ||= params[:current_branch]
-    end
-
-    def target_branch
-      @target_branch ||= params[:target_branch]
-    end
-
-    def raise_error(message)
-      raise ValidationError.new(message)
-    end
-
-    def validate
-      allowed = ::Gitlab::GitAccess.new(current_user, project).can_push_to_branch?(@target_branch)
-
-      unless allowed
-        raise_error("You are not allowed to push into this branch")
-      end
-
-      unless project.empty_repo?
-        unless repository.branch_names.include?(@current_branch)
-          raise_error("You can only create files if you are on top of a branch")
-        end
-
-        if @current_branch != @target_branch
-          if repository.branch_names.include?(@target_branch)
-            raise_error("Branch with such name already exists. You need to switch to this branch in order to make changes")
-          end
-        end
-      end
-    end
-
-    def create_target_branch
-      result = CreateBranchService.new(project, current_user).execute(@target_branch, @current_branch)
-
-      unless result[:status] == :success
-        raise_error("Something went wrong when we tried to create #{@target_branch} for you")
-      end
+    def repository
+      project.repository
     end
   end
 end
diff --git a/app/services/files/create_service.rb b/app/services/files/create_service.rb
index 91d715b2d63..23833aa78ec 100644
--- a/app/services/files/create_service.rb
+++ b/app/services/files/create_service.rb
@@ -1,30 +1,52 @@
 require_relative "base_service"
 
 module Files
-  class CreateService < Files::BaseService
-    def commit
-      repository.commit_file(current_user, @file_path, @file_content, @commit_message, @target_branch)
-    end
+  class CreateService < BaseService
+    def execute
+      allowed = Gitlab::GitAccess.new(current_user, project).can_push_to_branch?(ref)
 
-    def validate
-      super
+      unless allowed
+        return error("You are not allowed to create file in this branch")
+      end
 
-      file_name = File.basename(@file_path)
+      file_name = File.basename(path)
+      file_path = path
 
       unless file_name =~ Gitlab::Regex.file_name_regex
-        raise_error(
+        return error(
           'Your changes could not be committed, because the file name ' +
           Gitlab::Regex.file_name_regex_message
         )
       end
 
-      unless project.empty_repo?
-        blob = repository.blob_at_branch(@current_branch, @file_path)
+      if project.empty_repo?
+        # everything is ok because repo does not have a commits yet
+      else
+        unless repository.branch_names.include?(ref)
+          return error("You can only create files if you are on top of a branch")
+        end
+
+        blob = repository.blob_at_branch(ref, file_path)
 
         if blob
-          raise_error("Your changes could not be committed, because file with such name exists")
+          return error("Your changes could not be committed, because file with such name exists")
         end
       end
+
+
+      new_file_action = Gitlab::Satellite::NewFileAction.new(current_user, project, ref, file_path)
+      created_successfully = new_file_action.commit!(
+        params[:content],
+        params[:commit_message],
+        params[:encoding],
+        params[:new_branch]
+      )
+
+      if created_successfully
+        success
+      else
+        error("Your changes could not be committed, because the file has been changed")
+      end
     end
   end
 end
diff --git a/app/services/files/delete_service.rb b/app/services/files/delete_service.rb
index 27c881c3430..1497a0f883b 100644
--- a/app/services/files/delete_service.rb
+++ b/app/services/files/delete_service.rb
@@ -1,9 +1,36 @@
 require_relative "base_service"
 
 module Files
-  class DeleteService < Files::BaseService
-    def commit
-      repository.remove_file(current_user, @file_path, @commit_message, @target_branch)
+  class DeleteService < BaseService
+    def execute
+      allowed = ::Gitlab::GitAccess.new(current_user, project).can_push_to_branch?(ref)
+
+      unless allowed
+        return error("You are not allowed to push into this branch")
+      end
+
+      unless repository.branch_names.include?(ref)
+        return error("You can only create files if you are on top of a branch")
+      end
+
+      blob = repository.blob_at_branch(ref, path)
+
+      unless blob
+        return error("You can only edit text files")
+      end
+
+      delete_file_action = Gitlab::Satellite::DeleteFileAction.new(current_user, project, ref, path)
+
+      deleted_successfully = delete_file_action.commit!(
+        nil,
+        params[:commit_message]
+      )
+
+      if deleted_successfully
+        success
+      else
+        error("Your changes could not be committed, because the file has been changed")
+      end
     end
   end
 end
diff --git a/app/services/files/update_service.rb b/app/services/files/update_service.rb
index a20903c6f02..0724d3ae634 100644
--- a/app/services/files/update_service.rb
+++ b/app/services/files/update_service.rb
@@ -1,9 +1,39 @@
 require_relative "base_service"
 
 module Files
-  class UpdateService < Files::BaseService
-    def commit
-      repository.commit_file(current_user, @file_path, @file_content, @commit_message, @target_branch)
+  class UpdateService < BaseService
+    def execute
+      allowed = ::Gitlab::GitAccess.new(current_user, project).can_push_to_branch?(ref)
+
+      unless allowed
+        return error("You are not allowed to push into this branch")
+      end
+
+      unless repository.branch_names.include?(ref)
+        return error("You can only create files if you are on top of a branch")
+      end
+
+      blob = repository.blob_at_branch(ref, path)
+
+      unless blob
+        return error("You can only edit text files")
+      end
+
+      edit_file_action = Gitlab::Satellite::EditFileAction.new(current_user, project, ref, path)
+      edit_file_action.commit!(
+        params[:content],
+        params[:commit_message],
+        params[:encoding],
+        params[:new_branch]
+      )
+
+      success
+    rescue Gitlab::Satellite::CheckoutFailed => ex
+      error("Your changes could not be committed because ref '#{ref}' could not be checked out", 400)
+    rescue Gitlab::Satellite::CommitFailed => ex
+      error("Your changes could not be committed. Maybe there was nothing to commit?", 409)
+    rescue Gitlab::Satellite::PushFailed => ex
+      error("Your changes could not be committed. Maybe the file was changed by another process?", 409)
     end
   end
 end
diff --git a/app/services/git_push_service.rb b/app/services/git_push_service.rb
index 81535450ac1..5a2c97b08af 100644
--- a/app/services/git_push_service.rb
+++ b/app/services/git_push_service.rb
@@ -10,14 +10,16 @@ class GitPushService
   #
   # Next, this method:
   #  1. Creates the push event
-  #  2. Updates merge requests
-  #  3. Recognizes cross-references from commit messages
-  #  4. Executes the project's web hooks
-  #  5. Executes the project's services
+  #  2. Ensures that the project satellite exists
+  #  3. Updates merge requests
+  #  4. Recognizes cross-references from commit messages
+  #  5. Executes the project's web hooks
+  #  6. Executes the project's services
   #
   def execute(project, user, oldrev, newrev, ref)
     @project, @user = project, user
 
+    project.ensure_satellite_exists
     project.repository.expire_cache
 
     if push_remove_branch?(ref, newrev)
@@ -131,8 +133,7 @@ class GitPushService
   end
 
   def is_default_branch?(ref)
-    Gitlab::Git.branch_ref?(ref) &&
-      (Gitlab::Git.ref_name(ref) == project.default_branch || project.default_branch.nil?)
+    Gitlab::Git.branch_ref?(ref) && Gitlab::Git.ref_name(ref) == project.default_branch
   end
 
   def commit_user(commit)
diff --git a/app/services/merge_requests/auto_merge_service.rb b/app/services/merge_requests/auto_merge_service.rb
new file mode 100644
index 00000000000..cdedf48b0c0
--- /dev/null
+++ b/app/services/merge_requests/auto_merge_service.rb
@@ -0,0 +1,30 @@
+module MergeRequests
+  # AutoMergeService class
+  #
+  # Do git merge in satellite and in case of success
+  # mark merge request as merged and execute all hooks and notifications
+  # Called when you do merge via GitLab UI
+  class AutoMergeService < BaseMergeService
+    def execute(merge_request, commit_message)
+      merge_request.lock_mr
+
+      if Gitlab::Satellite::MergeAction.new(current_user, merge_request).merge!(commit_message)
+        merge_request.merge
+
+        create_merge_event(merge_request, current_user)
+        create_note(merge_request)
+        notification_service.merge_mr(merge_request, current_user)
+        execute_hooks(merge_request, 'merge')
+
+        true
+      else
+        merge_request.unlock_mr
+        false
+      end
+    rescue
+      merge_request.unlock_mr if merge_request.locked?
+      merge_request.mark_as_unmergeable
+      false
+    end
+  end
+end
diff --git a/app/services/merge_requests/base_merge_service.rb b/app/services/merge_requests/base_merge_service.rb
new file mode 100644
index 00000000000..9579573adf9
--- /dev/null
+++ b/app/services/merge_requests/base_merge_service.rb
@@ -0,0 +1,10 @@
+module MergeRequests
+  class BaseMergeService < MergeRequests::BaseService
+
+    private
+
+    def create_merge_event(merge_request, current_user)
+      EventCreateService.new.merge_mr(merge_request, current_user)
+    end
+  end
+end
diff --git a/app/services/merge_requests/build_service.rb b/app/services/merge_requests/build_service.rb
index a9b29f9654d..956480938c3 100644
--- a/app/services/merge_requests/build_service.rb
+++ b/app/services/merge_requests/build_service.rb
@@ -12,16 +12,12 @@ module MergeRequests
       merge_request.target_project ||= (project.forked_from_project || project)
       merge_request.target_branch ||= merge_request.target_project.default_branch
 
-      if merge_request.target_branch.blank? || merge_request.source_branch.blank?
-        message =
-          if params[:source_branch] || params[:target_branch]
-            "You must select source and target branch"
-          end
-
-        return build_failed(merge_request, message)
+      unless merge_request.target_branch && merge_request.source_branch
+        return build_failed(merge_request, nil)
       end
 
       compare_result = CompareService.new.execute(
+        current_user,
         merge_request.source_project,
         merge_request.source_branch,
         merge_request.target_project,
@@ -44,6 +40,7 @@ module MergeRequests
           merge_request.compare_diffs = diffs
 
         elsif diffs == false
+          # satellite timeout return false
           merge_request.can_be_created = false
           merge_request.compare_failed = true
         end
@@ -62,6 +59,9 @@ module MergeRequests
       end
 
       merge_request
+
+    rescue Gitlab::Satellite::BranchesWithoutParent
+      return build_failed(merge_request, "Selected branches have no common commit so they cannot be merged.")
     end
 
     def build_failed(merge_request, message)
diff --git a/app/services/merge_requests/merge_service.rb b/app/services/merge_requests/merge_service.rb
index 2107529a21a..327ead4ff3f 100644
--- a/app/services/merge_requests/merge_service.rb
+++ b/app/services/merge_requests/merge_service.rb
@@ -1,57 +1,22 @@
 module MergeRequests
   # MergeService class
   #
-  # Do git merge and in case of success
-  # mark merge request as merged and execute all hooks and notifications
-  # Executed when you do merge via GitLab UI
-  #
-  class MergeService < MergeRequests::BaseService
-    attr_reader :merge_request, :commit_message
-
+  # Mark existing merge request as merged
+  # and execute all hooks and notifications
+  # Called when you do merge via command line and push code
+  # to target branch
+  class MergeService < BaseMergeService
     def execute(merge_request, commit_message)
-      @commit_message = commit_message
-      @merge_request = merge_request
+      merge_request.merge
 
-      unless @merge_request.mergeable?
-        return error('Merge request is not mergeable')
-      end
-
-      merge_request.in_locked_state do
-        if merge_changes
-          after_merge
-          success
-        else
-          error('Can not merge changes')
-        end
-      end
-    end
-
-    private
-
-    def merge_changes
-      if sha = commit
-        after_commit(sha, merge_request.target_branch)
-      end
-    end
-
-    def commit
-      committer = repository.user_to_comitter(current_user)
-
-      options = {
-        message: commit_message,
-        author: committer,
-        committer: committer
-      }
-
-      repository.merge(merge_request.source_sha, merge_request.target_branch, options)
-    end
-
-    def after_commit(sha, branch)
-      PostCommitService.new(project, current_user).execute(sha, branch)
-    end
+      create_merge_event(merge_request, current_user)
+      create_note(merge_request)
+      notification_service.merge_mr(merge_request, current_user)
+      execute_hooks(merge_request, 'merge')
 
-    def after_merge
-      MergeRequests::PostMergeService.new(project, current_user).execute(merge_request)
+      true
+    rescue
+      false
     end
   end
 end
diff --git a/app/services/merge_requests/post_merge_service.rb b/app/services/merge_requests/post_merge_service.rb
deleted file mode 100644
index aceb8cb9021..00000000000
--- a/app/services/merge_requests/post_merge_service.rb
+++ /dev/null
@@ -1,22 +0,0 @@
-module MergeRequests
-  # PostMergeService class
-  #
-  # Mark existing merge request as merged
-  # and execute all hooks and notifications
-  #
-  class PostMergeService < MergeRequests::BaseService
-    def execute(merge_request)
-      merge_request.mark_as_merged
-      create_merge_event(merge_request, current_user)
-      create_note(merge_request)
-      notification_service.merge_mr(merge_request, current_user)
-      execute_hooks(merge_request, 'merge')
-    end
-
-    private
-
-    def create_merge_event(merge_request, current_user)
-      EventCreateService.new.merge_mr(merge_request, current_user)
-    end
-  end
-end
diff --git a/app/services/merge_requests/refresh_service.rb b/app/services/merge_requests/refresh_service.rb
index e903e48e3cd..d0648da049b 100644
--- a/app/services/merge_requests/refresh_service.rb
+++ b/app/services/merge_requests/refresh_service.rb
@@ -33,9 +33,9 @@ module MergeRequests
 
 
       merge_requests.uniq.select(&:source_project).each do |merge_request|
-        MergeRequests::PostMergeService.
+        MergeRequests::MergeService.
           new(merge_request.target_project, @current_user).
-          execute(merge_request)
+          execute(merge_request, nil)
       end
     end
 
diff --git a/app/services/post_commit_service.rb b/app/services/post_commit_service.rb
deleted file mode 100644
index 8592c8d238b..00000000000
--- a/app/services/post_commit_service.rb
+++ /dev/null
@@ -1,71 +0,0 @@
-class PostCommitService < BaseService
-  include Gitlab::Popen
-
-  attr_reader :changes, :repo_path
-
-  def execute(sha, branch)
-    commit = repository.commit(sha)
-    full_ref = Gitlab::Git::BRANCH_REF_PREFIX + branch
-    old_sha = commit.parent_id || Gitlab::Git::BLANK_SHA
-    @changes = "#{old_sha} #{sha} #{full_ref}"
-    @repo_path = repository.path_to_repo
-
-    post_receive
-  end
-
-  private
-
-  def post_receive
-    hook = hook_file('post-receive', repo_path)
-    return true if hook.nil?
-    call_receive_hook(hook)
-  end
-
-  def call_receive_hook(hook)
-    # function  will return true if succesful
-    exit_status = false
-
-    vars = {
-      'GL_ID' => Gitlab::ShellEnv.gl_id(current_user),
-      'PWD' => repo_path
-    }
-
-    options = {
-      chdir: repo_path
-    }
-
-    # we combine both stdout and stderr as we don't know what stream
-    # will be used by the custom hook
-    Open3.popen2e(vars, hook, options) do |stdin, stdout_stderr, wait_thr|
-      exit_status = true
-      stdin.sync = true
-
-      # in git, pre- and post- receive hooks may just exit without
-      # reading stdin. We catch the exception to avoid a broken pipe
-      # warning
-      begin
-        # inject all the changes as stdin to the hook
-        changes.lines do |line|
-          stdin.puts line
-        end
-      rescue Errno::EPIPE
-      end
-
-      # need to close stdin before reading stdout
-      stdin.close
-
-      # only output stdut_stderr if scripts doesn't return 0
-      unless wait_thr.value == 0
-        exit_status = false
-      end
-    end
-
-    exit_status
-  end
-
-  def hook_file(hook_type, repo_path)
-    hook_path = File.join(repo_path.strip, 'hooks')
-    hook_file = "#{hook_path}/#{hook_type}"
-    hook_file if File.exist?(hook_file)
-  end
-end
diff --git a/app/services/projects/destroy_service.rb b/app/services/projects/destroy_service.rb
index 28872c89259..403f419ec50 100644
--- a/app/services/projects/destroy_service.rb
+++ b/app/services/projects/destroy_service.rb
@@ -27,6 +27,7 @@ module Projects
         end
       end
 
+      project.satellite.destroy
       log_info("Project \"#{project.name}\" was removed")
       system_hook_service.execute_hooks_for(project, :destroy)
       true
diff --git a/app/services/projects/transfer_service.rb b/app/services/projects/transfer_service.rb
index 550ed6897dd..f43c0ef70e9 100644
--- a/app/services/projects/transfer_service.rb
+++ b/app/services/projects/transfer_service.rb
@@ -33,6 +33,9 @@ module Projects
           raise TransferError.new("Project with same path in target namespace already exists")
         end
 
+        # Remove old satellite
+        project.satellite.destroy
+
         # Apply new namespace id
         project.namespace = new_namespace
         project.save!
@@ -48,6 +51,9 @@ module Projects
         # Move wiki repo also if present
         gitlab_shell.mv_repository("#{old_path}.wiki", "#{new_path}.wiki")
 
+        # Create a new satellite (reload project from DB)
+        Project.find(project.id).ensure_satellite_exists
+
         # clear project cached events
         project.reset_events_cache
 
diff --git a/app/views/import/base/create.js.haml b/app/views/import/base/create.js.haml
index 90a6f5f9d2d..9529f16c128 100644
--- a/app/views/import/base/create.js.haml
+++ b/app/views/import/base/create.js.haml
@@ -14,12 +14,16 @@
   :plain
     job = $("tr#repo_#{@repo_id}")
     job.find(".import-actions").html("<p class='alert alert-danger'>Access denied! Please verify you can add deploy keys to this repository.</p>")
-- else
+- elsif @project.persisted?
   :plain
     job = $("tr#repo_#{@repo_id}")
     job.attr("id", "project_#{@project.id}")
     target_field = job.find(".import-target")
     target_field.empty()
-    target_field.append('<strong>#{link_to @project.path_with_namespace, [@project.namespace.becomes(Namespace), @project]}</strong>')
+    target_field.append('<strong>#{link_to @project.path_with_namespace, namespace_project_path(@project.namespace, @project)}</strong>')
     $("table.import-jobs tbody").prepend(job)
     job.addClass("active").find(".import-actions").html("<i class='fa fa-spinner fa-spin'></i> started")
+- else
+  :plain
+    job = $("tr#repo_#{@repo_id}")
+    job.find(".import-actions").html("<p class='alert alert-danger'>Error saving project: #{escape_javascript(@project.errors.messages.to_s)}</p>")
diff --git a/app/views/import/bitbucket/status.html.haml b/app/views/import/bitbucket/status.html.haml
index 98ae509096e..777eb482714 100644
--- a/app/views/import/bitbucket/status.html.haml
+++ b/app/views/import/bitbucket/status.html.haml
@@ -61,7 +61,7 @@
     rather than Git. Please convert
     = link_to "them to Git,", "https://www.atlassian.com/git/tutorials/migrating-overview"
     and go through the
-    = link_to "import flow", status_import_bitbucket_path
+    = link_to "import flow", status_import_bitbucket_path, "data-no-turbolink" => "true"
     again.
 
 
diff --git a/app/views/projects/blob/_editor.html.haml b/app/views/projects/blob/_editor.html.haml
index 9c3e1703c89..96f188e4aa7 100644
--- a/app/views/projects/blob/_editor.html.haml
+++ b/app/views/projects/blob/_editor.html.haml
@@ -12,8 +12,8 @@
         \/
         = text_field_tag 'file_name', params[:file_name], placeholder: "File name",
           required: true, class: 'form-control new-file-name'
-      .pull-right
-        = select_tag :encoding, options_for_select([ "base64", "text" ], "text"), class: 'form-control'
+        .pull-right
+          = select_tag :encoding, options_for_select([ "base64", "text" ], "text"), class: 'form-control'
 
   .file-content.code
     %pre.js-edit-mode-pane#editor
diff --git a/app/views/projects/blob/new.html.haml b/app/views/projects/blob/new.html.haml
index 7c2a4fece94..dac984f8c31 100644
--- a/app/views/projects/blob/new.html.haml
+++ b/app/views/projects/blob/new.html.haml
@@ -6,12 +6,11 @@
     = render 'shared/commit_message_container', params: params,
              placeholder: 'Add new file'
 
-    - unless @project.empty_repo?
-      .form-group.branch
-        = label_tag 'branch', class: 'control-label' do
-          Branch
-        .col-sm-10
-          = text_field_tag 'new_branch', @ref, class: "form-control"
+    .form-group.branch
+      = label_tag 'branch', class: 'control-label' do
+        Branch
+      .col-sm-10
+        = text_field_tag 'new_branch', @ref, class: "form-control"
 
     = hidden_field_tag 'content', '', id: 'file-content'
     = render 'projects/commit_button', ref: @ref,
diff --git a/app/views/projects/empty.html.haml b/app/views/projects/empty.html.haml
index dfe45a3802d..e577d35d560 100644
--- a/app/views/projects/empty.html.haml
+++ b/app/views/projects/empty.html.haml
@@ -43,6 +43,8 @@
         cd existing_folder
         git init
         git remote add origin #{ content_tag(:span, default_url_to_repo, class: 'clone')}
+        git add .
+        git commit
         git push -u origin master
 
 - if can? current_user, :remove_project, @project
diff --git a/app/views/projects/merge_requests/_new_compare.html.haml b/app/views/projects/merge_requests/_new_compare.html.haml
index 7709330611a..ff9c0cdb283 100644
--- a/app/views/projects/merge_requests/_new_compare.html.haml
+++ b/app/views/projects/merge_requests/_new_compare.html.haml
@@ -35,7 +35,7 @@
     - if @merge_request.compare_failed
       .alert.alert-danger
         %h4 Compare failed
-        %p We can't compare selected branches. It may be because of huge diff. Please try again or select different branches.
+        %p We can't compare selected branches. It may be because of huge diff or satellite timeout. Please try again or select different branches.
     - else
       .light-well
         .center
diff --git a/app/views/projects/merge_requests/_new_submit.html.haml b/app/views/projects/merge_requests/_new_submit.html.haml
index 76f44211dac..633a54f3620 100644
--- a/app/views/projects/merge_requests/_new_submit.html.haml
+++ b/app/views/projects/merge_requests/_new_submit.html.haml
@@ -24,7 +24,7 @@
         = icon('history')
         Commits
         %span.badge= @commits.size
-    %li.diffs-tab.active
+    %li.diffs-tab
       = link_to url_for(params), data: {target: '#diffs', action: 'diffs', toggle: 'tab'} do
         = icon('list-alt')
         Changes
@@ -33,7 +33,7 @@
   .tab-content
     #commits.commits.tab-pane
       = render "projects/commits/commits", project: @project
-    #diffs.diffs.tab-pane.active
+    #diffs.diffs.tab-pane
       - if @diffs.present?
         = render "projects/diffs/diffs", diffs: @diffs, project: @project
       - elsif @commits.size > MergeRequestDiff::COMMITS_SAFE_SIZE
diff --git a/app/views/projects/merge_requests/_show.html.haml b/app/views/projects/merge_requests/_show.html.haml
index 2662e3aff6b..c57eee14143 100644
--- a/app/views/projects/merge_requests/_show.html.haml
+++ b/app/views/projects/merge_requests/_show.html.haml
@@ -6,25 +6,40 @@
     = render "projects/merge_requests/show/mr_box"
     %hr
     .append-bottom-20
-      - if @merge_request.open?
-        .btn-group.btn-group-sm.pull-right
-          %a.btn.btn-sm.dropdown-toggle{ data: {toggle: :dropdown} }
-            = icon('download')
-            Download as
-            %span.caret
-          %ul.dropdown-menu
-            %li= link_to "Email Patches", merge_request_path(@merge_request, format: :patch)
-            %li= link_to "Plain Diff",    merge_request_path(@merge_request, format: :diff)
-      .light
-        %div
-          %span From
-          %span.label-branch #{source_branch_with_namespace(@merge_request)}
+      .slead
+        %span From
+        - if @merge_request.for_fork?
+          %strong.label-branch<
+            - if @merge_request.source_project
+              = link_to @merge_request.source_project_namespace, namespace_project_path(@merge_request.source_project.namespace, @merge_request.source_project)
+            - else
+              \ #{@merge_request.source_project_namespace}
+            \:#{@merge_request.source_branch}
           %span into
-          %span.label-branch #{@merge_request.target_branch}
-        - if @merge_request.open? && !@merge_request.branch_missing?
-          %div
-            If you want to try or merge this request manually, you can use the
-            = link_to "command line", "#modal_merge_info", class: "how_to_merge_link vlink", title: "How To Merge", "data-toggle" => "modal"
+          %strong.label-branch #{@merge_request.target_project_namespace}:#{@merge_request.target_branch}
+        - else
+          %strong.label-branch #{@merge_request.source_branch}
+          %span into
+          %strong.label-branch #{@merge_request.target_branch}
+        - if @merge_request.open?
+          .btn-group.btn-group-sm.pull-right
+            %a.btn.btn-sm.dropdown-toggle{ data: {toggle: :dropdown} }
+              = icon('download')
+              Download as
+              %span.caret
+            %ul.dropdown-menu
+              %li= link_to "Email Patches", merge_request_path(@merge_request, format: :patch)
+              %li= link_to "Plain Diff",    merge_request_path(@merge_request, format: :diff)
+
+    - if @merge_request.open? and @merge_request.source_branch_exists?
+      .append-bottom-20
+        .slead
+          %span
+            Fetch the branch with
+            %strong.label-branch<
+              git fetch
+              \ #{@merge_request.source_project.http_url_to_repo}
+              \ #{@merge_request.source_branch}
 
     = render "projects/merge_requests/show/how_to_merge"
     = render "projects/merge_requests/widget/show.html.haml"
diff --git a/app/views/projects/merge_requests/merge.js.haml b/app/views/projects/merge_requests/automerge.js.haml
index 33321651e32..33321651e32 100644
--- a/app/views/projects/merge_requests/merge.js.haml
+++ b/app/views/projects/merge_requests/automerge.js.haml
diff --git a/app/views/projects/merge_requests/show/_commits.html.haml b/app/views/projects/merge_requests/show/_commits.html.haml
index a71b181a6a5..3b7f283daf0 100644
--- a/app/views/projects/merge_requests/show/_commits.html.haml
+++ b/app/views/projects/merge_requests/show/_commits.html.haml
@@ -1 +1 @@
-= render "projects/commits/commits", project: @merge_request.project
+= render "projects/commits/commits", project: @merge_request.source_project
diff --git a/app/views/projects/merge_requests/show/_diffs.html.haml b/app/views/projects/merge_requests/show/_diffs.html.haml
index 626970f39be..786b5f39063 100644
--- a/app/views/projects/merge_requests/show/_diffs.html.haml
+++ b/app/views/projects/merge_requests/show/_diffs.html.haml
@@ -1,5 +1,5 @@
 - if @merge_request_diff.collected?
-  = render "projects/diffs/diffs", diffs: @merge_request.diffs, project: @merge_request.project
+  = render "projects/diffs/diffs", diffs: @merge_request.diffs, project: @merge_request.source_project
 - elsif @merge_request_diff.empty?
   .nothing-here-block Nothing to merge from #{@merge_request.source_branch} into #{@merge_request.target_branch}
 - else
diff --git a/app/views/projects/merge_requests/show/_how_to_merge.html.haml b/app/views/projects/merge_requests/show/_how_to_merge.html.haml
index db1575f899a..22f601ac99e 100644
--- a/app/views/projects/merge_requests/show/_how_to_merge.html.haml
+++ b/app/views/projects/merge_requests/show/_how_to_merge.html.haml
@@ -3,45 +3,42 @@
     .modal-content
       .modal-header
         %a.close{href: "#", "data-dismiss" => "modal"} ×
-        %h3 Check out, review and merge locally
+        %h3 How to merge
       .modal-body
-        %p
-          %strong Step 1. 
-          Fetch and check out the branch for this merge request
-        %pre.dark
-          - if @merge_request.for_fork?
+        - if @merge_request.for_fork?
+          - source_remote = @merge_request.source_project.namespace.nil? ? "source" :@merge_request.source_project.namespace.path
+          - target_remote = @merge_request.target_project.namespace.nil? ? "target" :@merge_request.target_project.namespace.path
+          %p
+            %strong Step 1.
+            Fetch the code and create a new branch pointing to it
+          %pre.dark
             :preserve
               git fetch #{@merge_request.source_project.http_url_to_repo} #{@merge_request.source_branch}
               git checkout -b #{@merge_request.source_project_path}-#{@merge_request.source_branch} FETCH_HEAD
-          - else
-            :preserve
-              git fetch origin
-              git checkout -b #{@merge_request.source_branch} origin/#{@merge_request.source_branch}
-        %p
-          %strong Step 2.
-          Review the changes locally
-
-        %p
-          %strong Step 3.
-          Merge the branch and fix any conflicts that come up
-        %pre.dark
-          - if @merge_request.for_fork?
+          %p
+            %strong Step 2.
+            Merge the branch and push the changes to GitLab
+          %pre.dark
             :preserve
               git checkout #{@merge_request.target_branch}
               git merge --no-ff #{@merge_request.source_project_path}-#{@merge_request.source_branch}
-          - else
+              git push origin #{@merge_request.target_branch}
+        - else
+          %p
+            %strong Step 1.
+            Update the repo and checkout the branch we are going to merge
+          %pre.dark
+            :preserve
+              git fetch origin
+              git checkout -b #{@merge_request.source_branch} origin/#{@merge_request.source_branch}
+          %p
+            %strong Step 2.
+            Merge the branch and push the changes to GitLab
+          %pre.dark
             :preserve
               git checkout #{@merge_request.target_branch}
               git merge --no-ff #{@merge_request.source_branch}
-        %p
-          %strong Step 4.
-          Push the result of the merge to GitLab
-        %pre.dark
-          :preserve
-            git push origin #{@merge_request.target_branch}
-        - unless @merge_request.can_be_merged_by?(current_user)
-          %p
-            Note that pushing to GitLab requires write access to this repository.
+              git push origin #{@merge_request.target_branch}
 
 :javascript
   $(function(){
diff --git a/app/views/projects/merge_requests/widget/_closed.html.haml b/app/views/projects/merge_requests/widget/_closed.html.haml
index f3cc0e7e8a1..b5704c502c8 100644
--- a/app/views/projects/merge_requests/widget/_closed.html.haml
+++ b/app/views/projects/merge_requests/widget/_closed.html.haml
@@ -6,7 +6,4 @@
       - if @merge_request.closed_event
         by #{link_to_member(@project, @merge_request.closed_event.author, avatar: true)}
         #{time_ago_with_tooltip(@merge_request.closed_event.created_at)}
-    %p 
-      = succeed '.' do
-        The changes were not merged into
-        %span.label-branch= @merge_request.target_branch
+    %p Changes were not merged into target branch
diff --git a/app/views/projects/merge_requests/widget/_heading.html.haml b/app/views/projects/merge_requests/widget/_heading.html.haml
index 4d4e2f68f61..f04eac0e3bb 100644
--- a/app/views/projects/merge_requests/widget/_heading.html.haml
+++ b/app/views/projects/merge_requests/widget/_heading.html.haml
@@ -1,28 +1,49 @@
 - if @merge_request.has_ci?
   .mr-widget-heading
-    - [:success, :skipped, :canceled, :failed, :running, :pending].each do |status|
+    .ci_widget.ci-success{style: "display:none"}
+      = icon("check")
+      %span CI build passed
+      for #{@merge_request.last_commit_short_sha}.
+      = link_to "View build page", ci_build_details_path(@merge_request), :"data-no-turbolink" => "data-no-turbolink"
+
+    .ci_widget.ci-skipped{style: "display:none"}
+      = icon("check")
+      %span CI build skipped
+      for #{@merge_request.last_commit_short_sha}.
+      = link_to "View build page", ci_build_details_path(@merge_request), :"data-no-turbolink" => "data-no-turbolink"
+
+    .ci_widget.ci-failed{style: "display:none"}
+      = icon("times")
+      %span CI build failed
+      for #{@merge_request.last_commit_short_sha}.
+      = link_to "View build page", ci_build_details_path(@merge_request), :"data-no-turbolink" => "data-no-turbolink"
+
+    - [:running, :pending].each do |status|
       .ci_widget{class: "ci-#{status}", style: "display:none"}
-        - if status == :success
-          - status = "passed"
-          = icon("check-circle")
-        - else
-          = icon("circle")
+        = icon("clock-o")
         %span CI build #{status}
         for #{@merge_request.last_commit_short_sha}.
-        %span.ci-coverage
-        = link_to "View build details", ci_build_details_path(@merge_request), :"data-no-turbolink" => "data-no-turbolink"
+        = link_to "View build page", ci_build_details_path(@merge_request), :"data-no-turbolink" => "data-no-turbolink"
 
     .ci_widget
       = icon("spinner spin")
-      Checking CI status for #{@merge_request.last_commit_short_sha}&hellip;
+      Checking for CI status for #{@merge_request.last_commit_short_sha}
 
     .ci_widget.ci-not_found{style: "display:none"}
-      = icon("times-circle")
-      Could not find CI status for #{@merge_request.last_commit_short_sha}.
+      = icon("times")
+      %span Can not find commit in the CI server
+      for #{@merge_request.last_commit_short_sha}.
+      
+
+    .ci_widget.ci-canceled{style: "display:none"}
+      = icon("times")
+      %span CI build canceled
+      for #{@merge_request.last_commit_short_sha}.
+      = link_to "View build page", ci_build_details_path(@merge_request), :"data-no-turbolink" => "data-no-turbolink"
 
     .ci_widget.ci-error{style: "display:none"}
-      = icon("times-circle")
-      Could not connect to the CI server. Please check your settings and try again.
+      = icon("times")
+      %span Cannot connect to the CI server. Please check your settings and try again.
 
   :coffeescript
     $ ->
diff --git a/app/views/projects/merge_requests/widget/_locked.html.haml b/app/views/projects/merge_requests/widget/_locked.html.haml
index 78d0783cba0..13ec278847b 100644
--- a/app/views/projects/merge_requests/widget/_locked.html.haml
+++ b/app/views/projects/merge_requests/widget/_locked.html.haml
@@ -2,8 +2,7 @@
   = render 'projects/merge_requests/widget/heading'
   .mr-widget-body
     %h4
-      = icon("spinner spin")
-      Merge in progress&hellip;
+      Merge in progress...
     %p
-      This merge request is in the process of being merged, during which time it is locked and cannot be closed.
+      Merging is in progress. While merging this request is locked and cannot be closed.
 
diff --git a/app/views/projects/merge_requests/widget/_merged.html.haml b/app/views/projects/merge_requests/widget/_merged.html.haml
index d22dfa085b8..a3b13140810 100644
--- a/app/views/projects/merge_requests/widget/_merged.html.haml
+++ b/app/views/projects/merge_requests/widget/_merged.html.haml
@@ -7,31 +7,23 @@
         by #{link_to_member(@project, @merge_request.merge_event.author, avatar: true)}
         #{time_ago_with_tooltip(@merge_request.merge_event.created_at)}
     %div
-      - if !@merge_request.source_branch_exists?
-        = succeed '.' do
-          The changes were merged into
-          %span.label-branch= @merge_request.target_branch
-        The source branch has been removed.
+      - if @source_branch.blank?
+        Source branch has been removed
 
-      - elsif can_remove_branch?(@merge_request.source_project, @merge_request.source_branch)
+      - elsif can_remove_branch?(@merge_request.source_project, @merge_request.source_branch) && @merge_request.merged?
         .remove_source_branch_widget
-          %p 
-            = succeed '.' do
-              The changes were merged into
-              %span.label-branch= @merge_request.target_branch
-            You can remove the source branch now.
+          %p Changes merged into #{@merge_request.target_branch}. You can remove source branch now
           = link_to namespace_project_branch_path(@merge_request.source_project.namespace, @merge_request.source_project, @source_branch), remote: true, method: :delete, class: "btn btn-primary btn-sm remove_source_branch" do
             %i.fa.fa-times
             Remove Source Branch
 
         .remove_source_branch_widget.failed.hide
-          %p 
-            Failed to remove source branch '#{@merge_request.source_branch}'.
+          Failed to remove source branch '#{@merge_request.source_branch}'
 
         .remove_source_branch_in_progress.hide
-          %p
-            = icon('spinner spin')
-            Removing source branch '#{@merge_request.source_branch}'. Please wait. This page will be automatically reload.
+          %i.fa.fa-spinner.fa-spin
+          &nbsp;
+          Removing source branch '#{@merge_request.source_branch}'. Please wait. Page will be automatically reloaded. &nbsp;
 
         :coffeescript
           $('.remove_source_branch').on 'click', ->
diff --git a/app/views/projects/merge_requests/widget/_open.html.haml b/app/views/projects/merge_requests/widget/_open.html.haml
index 0aad9bb3e88..bb794912f8f 100644
--- a/app/views/projects/merge_requests/widget/_open.html.haml
+++ b/app/views/projects/merge_requests/widget/_open.html.haml
@@ -3,6 +3,8 @@
   .mr-widget-body
     - if @project.archived?
       = render 'projects/merge_requests/widget/open/archived'
+    - elsif !@project.satellite.exists?
+      = render 'projects/merge_requests/widget/open/no_satellite'
     - elsif @merge_request.commits.blank?
       = render 'projects/merge_requests/widget/open/nothing'
     - elsif @merge_request.branch_missing?
@@ -22,6 +24,6 @@
     .mr-widget-footer
       %span
         %i.fa.fa-check
-        Accepting this merge request will close #{"issue".pluralize(@closes_issues.size)}
+        Accepting this merge request will close #{@closes_issues.size == 1 ? 'issue' : 'issues'}
         = succeed '.' do
           != gfm(issues_sentence(@closes_issues))
diff --git a/app/views/projects/merge_requests/widget/_show.html.haml b/app/views/projects/merge_requests/widget/_show.html.haml
index a489d4f9b24..263cab7a9e8 100644
--- a/app/views/projects/merge_requests/widget/_show.html.haml
+++ b/app/views/projects/merge_requests/widget/_show.html.haml
@@ -11,10 +11,10 @@
   var merge_request_widget;
 
   merge_request_widget = new MergeRequestWidget({
-    url_to_automerge_check: "#{merge_check_namespace_project_merge_request_path(@project.namespace, @project, @merge_request)}",
+    url_to_automerge_check: "#{automerge_check_namespace_project_merge_request_path(@project.namespace, @project, @merge_request)}",
     check_enable: #{@merge_request.unchecked? ? "true" : "false"},
     url_to_ci_check: "#{ci_status_namespace_project_merge_request_path(@project.namespace, @project, @merge_request)}",
     ci_enable: #{@project.ci_service ? "true" : "false"},
-    current_status: "#{@merge_request.gitlab_merge_status}",
+    current_status: "#{@merge_request.automerge_status}",
   });
 
diff --git a/app/views/projects/merge_requests/widget/open/_accept.html.haml b/app/views/projects/merge_requests/widget/open/_accept.html.haml
index e1525f6aeb7..f5bacaf280a 100644
--- a/app/views/projects/merge_requests/widget/open/_accept.html.haml
+++ b/app/views/projects/merge_requests/widget/open/_accept.html.haml
@@ -1,4 +1,4 @@
-= form_for [:merge, @project.namespace.becomes(Namespace), @project, @merge_request], remote: true, method: :post, html: { class: 'accept-mr-form js-requires-input' } do |f|
+= form_for [:automerge, @project.namespace.becomes(Namespace), @project, @merge_request], remote: true, method: :post, html: { class: 'accept-mr-form js-requires-input' } do |f|
   = hidden_field_tag :authenticity_token, form_authenticity_token
   .accept-merge-holder.clearfix.js-toggle-container
     .accept-action
@@ -8,16 +8,22 @@
       .accept-control.checkbox
         = label_tag :should_remove_source_branch, class: "remove_source_checkbox" do
           = check_box_tag :should_remove_source_branch
-          Remove source branch
+          Remove source-branch
     .accept-control
-      = link_to "#", class: "modify-merge-commit-link js-toggle-button" do
-        = icon('edit')
+      = link_to "#", class: "modify-merge-commit-link js-toggle-button", title: "Modify merge commit message" do
+        %i.fa.fa-edit
         Modify commit message
     .js-toggle-content.hide.prepend-top-20
       = render 'shared/commit_message_container', params: params,
           text: @merge_request.merge_commit_message,
           rows: 14, hint: true
 
+  %br
+  .light
+    If you want to merge this request manually, you can use the
+    %strong
+      = link_to "command line", "#modal_merge_info", class: "how_to_merge_link vlink", title: "How To Merge", "data-toggle" => "modal"
+
   :coffeescript
     $('.accept-mr-form').on 'ajax:before', ->
       btn = $('.accept_merge_request')
diff --git a/app/views/projects/merge_requests/widget/open/_archived.html.haml b/app/views/projects/merge_requests/widget/open/_archived.html.haml
index ab30fa6b243..eaf113ee568 100644
--- a/app/views/projects/merge_requests/widget/open/_archived.html.haml
+++ b/app/views/projects/merge_requests/widget/open/_archived.html.haml
@@ -1,4 +1,2 @@
-%h4 
-  Project is archived
 %p
-  This merge request cannot be merged because archived projects cannot be written to.
+  %strong Archived projects do not provide commit access.
diff --git a/app/views/projects/merge_requests/widget/open/_check.html.haml b/app/views/projects/merge_requests/widget/open/_check.html.haml
index b6b8974297e..e775447cb75 100644
--- a/app/views/projects/merge_requests/widget/open/_check.html.haml
+++ b/app/views/projects/merge_requests/widget/open/_check.html.haml
@@ -1,6 +1,6 @@
 %strong
-  = icon("spinner spin")
-  Checking ability to merge automatically&hellip;
+  %i.fa.fa-spinner.fa-spin
+  Checking automatic merge…
 
 :coffeescript
   $ ->
diff --git a/app/views/projects/merge_requests/widget/open/_conflicts.html.haml b/app/views/projects/merge_requests/widget/open/_conflicts.html.haml
index e6c089fefb2..7dc3b4eb2cc 100644
--- a/app/views/projects/merge_requests/widget/open/_conflicts.html.haml
+++ b/app/views/projects/merge_requests/widget/open/_conflicts.html.haml
@@ -1,10 +1,10 @@
-%h4
-  = icon("exclamation-triangle")
-  This merge request contains merge conflicts
-
-%p
-  Please resolve these conflicts or 
-  - if @merge_request.can_be_merged_by?(current_user)
-    #{link_to "merge this request manually", "#modal_merge_info", class: "how_to_merge_link vlink", "data-toggle" => "modal"}.
-  - else
-    ask someone with write access to this repository to merge this request manually.
+- if @merge_request.can_be_merged_by?(current_user)
+  %h4
+    This merge request contains merge conflicts that must be resolved.
+  %p
+    You can merge it manually using the
+    %strong
+      = link_to "command line", "#modal_merge_info", class: "how_to_merge_link vlink", title: "How To Merge", "data-toggle" => "modal"
+- else
+  %strong This merge request contains merge conflicts that must be resolved.
+  Only those with write access to this repository can merge merge requests.
diff --git a/app/views/projects/merge_requests/widget/open/_missing_branch.html.haml b/app/views/projects/merge_requests/widget/open/_missing_branch.html.haml
index c9f07629493..1c565bae80a 100644
--- a/app/views/projects/merge_requests/widget/open/_missing_branch.html.haml
+++ b/app/views/projects/merge_requests/widget/open/_missing_branch.html.haml
@@ -1,16 +1,16 @@
-- unless @merge_request.source_branch_exists?
-  %h4
-    = icon("exclamation-triangle")
-    Source branch
-    %span.label-branch= source_branch_with_namespace(@merge_request)
-    does not exist
-  %p
-    Please restore the source branch or close this merge request and open a new merge request with a different source branch.
-- else
-  %h4
-    = icon("exclamation-triangle")
-    Target branch
-    %span.label-branch= @merge_request.target_branch
-    does not exist
-  %p
-    Please restore the target branch or use a different target branch.
+%h4
+  Can't be merged
+%p
+  This merge request can not be accepted because branch
+  - unless @merge_request.source_branch_exists?
+    %span.label.label-inverse= @merge_request.source_branch
+    does not exist in
+    %span.label.label-info= @merge_request.source_project_path
+    %br
+    %strong Please close this merge request and open a new merge request to change source branches.
+  - else
+    %span.label.label-inverse= @merge_request.target_branch
+    does not exist in
+    %span.label.label-info= @merge_request.target_project_path
+    %br
+    %strong Please close this merge request or change to another target branch.
diff --git a/app/views/projects/merge_requests/widget/open/_no_satellite.html.haml b/app/views/projects/merge_requests/widget/open/_no_satellite.html.haml
new file mode 100644
index 00000000000..3718cfd8333
--- /dev/null
+++ b/app/views/projects/merge_requests/widget/open/_no_satellite.html.haml
@@ -0,0 +1,3 @@
+%p
+  %span
+    %strong This repository does not have a satellite. Please ask an administrator to fix this issue!
diff --git a/app/views/projects/merge_requests/widget/open/_not_allowed.html.haml b/app/views/projects/merge_requests/widget/open/_not_allowed.html.haml
index a8145558ca8..82f6ffd8fcb 100644
--- a/app/views/projects/merge_requests/widget/open/_not_allowed.html.haml
+++ b/app/views/projects/merge_requests/widget/open/_not_allowed.html.haml
@@ -1,4 +1,2 @@
-%h4 
-  Ready to be merged automatically
-%p
-  Ask someone with write access to this repository to merge this request.
+%strong This request can be merged automatically.
+Only those with write access to this repository can merge merge requests.
diff --git a/app/views/projects/merge_requests/widget/open/_nothing.html.haml b/app/views/projects/merge_requests/widget/open/_nothing.html.haml
index 35626b624b7..4d526576bc2 100644
--- a/app/views/projects/merge_requests/widget/open/_nothing.html.haml
+++ b/app/views/projects/merge_requests/widget/open/_nothing.html.haml
@@ -1,8 +1,8 @@
-%h4 
-  = icon("exclamation-triangle")
-  Nothing to merge from
-  %span.label-branch= source_branch_with_namespace(@merge_request)
-  into
-  %span.label-branch= @merge_request.target_branch
+%h4 Nothing to merge
 %p
-  Please push new commits to the source branch or use a different target branch.
+  Nothing to merge from
+  %span.label-branch #{@merge_request.source_branch}
+  to
+  %span.label-branch #{@merge_request.target_branch}
+  %br
+  Try to use different branches or push new code.
diff --git a/app/views/projects/merge_requests/widget/open/_reload.html.haml b/app/views/projects/merge_requests/widget/open/_reload.html.haml
index acfc31725eb..5787f6efea4 100644
--- a/app/views/projects/merge_requests/widget/open/_reload.html.haml
+++ b/app/views/projects/merge_requests/widget/open/_reload.html.haml
@@ -1,6 +1 @@
-%h4
-  = icon("exclamation-triangle")
-  This merge request failed to be merged automatically
-
-%p
-  Please reload the page to find out the reason.
+This merge request cannot be merged. Try to reload the page.
diff --git a/app/views/projects/merge_requests/widget/open/_wip.html.haml b/app/views/projects/merge_requests/widget/open/_wip.html.haml
index 0cf16542cc1..4ce3ab31278 100644
--- a/app/views/projects/merge_requests/widget/open/_wip.html.haml
+++ b/app/views/projects/merge_requests/widget/open/_wip.html.haml
@@ -1,5 +1,13 @@
-%h4
-  This merge request is currently a Work In Progress
+- if @merge_request.can_be_merged_by?(current_user)
+  %h4
+    This merge request cannot be accepted because it is marked as Work In Progress.
 
-%p
-  When this merge request is ready, remove the "WIP" prefix from the title to allow it to be merged.
+  %p
+    %button.btn.disabled{:type => 'button'}
+      %i.fa.fa-warning
+      Accept Merge Request
+    &nbsp;
+    When the merge request is ready, remove the "WIP" prefix from the title to allow it to be accepted.
+- else
+  %strong This merge request is marked as Work In Progress.
+  Only those with write access to this repository can merge merge requests.
diff --git a/app/views/projects/new.html.haml b/app/views/projects/new.html.haml
index d49eacb30dd..d25fe68242b 100644
--- a/app/views/projects/new.html.haml
+++ b/app/views/projects/new.html.haml
@@ -40,7 +40,7 @@
 
 
             - if bitbucket_import_enabled?
-              = link_to status_import_bitbucket_path, class: 'btn' do
+              = link_to status_import_bitbucket_path, class: 'btn', "data-no-turbolink" => "true" do
                 %i.fa.fa-bitbucket
                 Bitbucket
             - else
diff --git a/app/views/projects/show.html.haml b/app/views/projects/show.html.haml
index 4577b84ab89..ebbd3e477fc 100644
--- a/app/views/projects/show.html.haml
+++ b/app/views/projects/show.html.haml
@@ -23,18 +23,21 @@
       = link_to namespace_project_tags_path(@project.namespace, @project) do
         = pluralize(number_with_delimiter(@repository.tag_names.count), 'tag')
 
+    - if !prefer_readme? && @repository.readme
+      %li
+        = link_to 'Readme', readme_path(@project)
+
     - if @repository.changelog
       %li
-        = link_to changelog_path(@project) do
-          Changelog
+        = link_to 'Changelog', changelog_path(@project)
+
     - if @repository.license
       %li
-        = link_to license_path(@project) do
-          License
+        = link_to 'License', license_path(@project)
+
     - if @repository.contribution_guide
       %li
-        = link_to contribution_guide_path(@project) do
-          Contribution guide
+        = link_to 'Contribution guide', contribution_guide_path(@project)
 
     - if current_user && can_push_branch?(@project, @project.default_branch)
       - unless @repository.changelog
diff --git a/app/views/shared/issuable/_form.html.haml b/app/views/shared/issuable/_form.html.haml
index 3489bf3f191..ac8c1936c9e 100644
--- a/app/views/shared/issuable/_form.html.haml
+++ b/app/views/shared/issuable/_form.html.haml
@@ -16,10 +16,10 @@
       %p.help-block
         - if issuable.work_in_progress?
           Remove the <code>WIP</code> prefix from the title to allow this
-          <strong>Work In Progress</strong> merge request to be merged when it's ready.
+          <strong>Work In Progress</strong> merge request to be accepted when it's ready.
         - else
           Start the title with <code>[WIP]</code> or <code>WIP:</code> to prevent a
-          <strong>Work In Progress</strong> merge request from being merged before it's ready.
+          <strong>Work In Progress</strong> merge request from being accepted before it's ready.
 .form-group.issuable-description
   = f.label :description, 'Description', class: 'control-label'
   .col-sm-10
diff --git a/app/workers/auto_merge_worker.rb b/app/workers/auto_merge_worker.rb
new file mode 100644
index 00000000000..a6dd73eee5f
--- /dev/null
+++ b/app/workers/auto_merge_worker.rb
@@ -0,0 +1,13 @@
+class AutoMergeWorker
+  include Sidekiq::Worker
+
+  sidekiq_options queue: :default
+
+  def perform(merge_request_id, current_user_id, params)
+    params = params.with_indifferent_access
+    current_user = User.find(current_user_id)
+    merge_request = MergeRequest.find(merge_request_id)
+    merge_request.should_remove_source_branch = params[:should_remove_source_branch]
+    merge_request.automerge!(current_user, params[:commit_message])
+  end
+end
diff --git a/app/workers/merge_worker.rb b/app/workers/merge_worker.rb
deleted file mode 100644
index 6a8665c179a..00000000000
--- a/app/workers/merge_worker.rb
+++ /dev/null
@@ -1,19 +0,0 @@
-class MergeWorker
-  include Sidekiq::Worker
-
-  sidekiq_options queue: :default
-
-  def perform(merge_request_id, current_user_id, params)
-    params = params.with_indifferent_access
-    current_user = User.find(current_user_id)
-    merge_request = MergeRequest.find(merge_request_id)
-
-    result = MergeRequests::MergeService.new(merge_request.target_project, current_user).
-      execute(merge_request, params[:commit_message])
-
-    if result[:status] == :success && params[:should_remove_source_branch].present?
-      DeleteBranchService.new(merge_request.source_project, current_user).
-        execute(merge_request.source_branch)
-    end
-  end
-end
diff --git a/app/workers/repository_import_worker.rb b/app/workers/repository_import_worker.rb
index b546f8777e1..94832872d13 100644
--- a/app/workers/repository_import_worker.rb
+++ b/app/workers/repository_import_worker.rb
@@ -27,6 +27,7 @@ class RepositoryImportWorker
 
     project.import_finish
     project.save
+    project.satellite.create unless project.satellite.exists?
     ProjectCacheWorker.perform_async(project.id)
     Gitlab::BitbucketImport::KeyDeleter.new(project).execute if project.import_type == 'bitbucket'
   end
diff --git a/config/routes.rb b/config/routes.rb
index d7307a61ede..1166a4b3eba 100644
--- a/config/routes.rb
+++ b/config/routes.rb
@@ -463,8 +463,8 @@ Gitlab::Application.routes.draw do
           member do
             get :diffs
             get :commits
-            post :merge
-            get :merge_check
+            post :automerge
+            get :automerge_check
             get :ci_status
             post :toggle_subscription
           end
diff --git a/doc/customization/libravatar.md b/doc/customization/libravatar.md
index ee57fdc6590..54c1780c3ab 100644
--- a/doc/customization/libravatar.md
+++ b/doc/customization/libravatar.md
@@ -1,6 +1,6 @@
 # Use Libravatar service with GitLab
 
-GitLab by default supports [Gravatar](gravatar.com) avatar service.
+GitLab by default supports [Gravatar](https://gravatar.com) avatar service.
 Libravatar is a service which delivers your avatar (profile picture) to other websites and their API is
 [heavily based on gravatar](http://wiki.libravatar.org/api/).
 
diff --git a/doc/development/architecture.md b/doc/development/architecture.md
index c00d290371e..541af487bb1 100644
--- a/doc/development/architecture.md
+++ b/doc/development/architecture.md
@@ -56,9 +56,9 @@ To serve repositories over SSH there's an add-on application called gitlab-shell
 
 A typical install of GitLab will be on GNU/Linux. It uses Nginx or Apache as a web front end to proxypass the Unicorn web server. By default, communication between Unicorn and the front end is via a Unix domain socket but forwarding requests via TCP is also supported. The web front end accesses `/home/git/gitlab/public` bypassing the Unicorn server to serve static pages, uploads (e.g. avatar images or attachments), and precompiled assets. GitLab serves web pages and a [GitLab API](https://gitlab.com/gitlab-org/gitlab-ce/tree/master/doc/api) using the Unicorn web server. It uses Sidekiq as a job queue which, in turn, uses redis as a non-persistent database backend for job information, meta data, and incoming jobs.
 
-The GitLab web app uses MySQL or PostgreSQL for persistent database information (e.g. users, permissions, issues, other meta data). GitLab stores the bare git repositories it serves in `/home/git/repositories` by default. It also keeps default branch and hook information with the bare repository.
+The GitLab web app uses MySQL or PostgreSQL for persistent database information (e.g. users, permissions, issues, other meta data). GitLab stores the bare git repositories it serves in `/home/git/repositories` by default. It also keeps default branch and hook information with the bare repository. `/home/git/gitlab-satellites` keeps checked out repositories when performing actions such as a merge request, editing files in the web interface, etc.
 
-When serving repositories over HTTP/HTTPS GitLab utilizes the GitLab API to resolve authorization and access as well as serving git objects.
+The satellite repository is used by the web interface for editing repositories and the wiki which is also a git repository. When serving repositories over HTTP/HTTPS GitLab utilizes the GitLab API to resolve authorization and access as well as serving git objects.
 
 The add-on component gitlab-shell serves repositories over SSH. It manages the SSH keys within `/home/git/.ssh/authorized_keys` which should not be manually edited. gitlab-shell accesses the bare repositories directly to serve git objects and communicates with redis to submit jobs to Sidekiq for GitLab to process. gitlab-shell queries the GitLab API to determine authorization and access.
 
@@ -129,7 +129,7 @@ Note: `/home/git/` is shorthand for `/home/git`.
 
 gitlabhq (includes Unicorn and Sidekiq logs)
 
-- `/home/git/gitlab/log/` contains `application.log`, `production.log`, `sidekiq.log`, `unicorn.stdout.log`, `githost.log` and `unicorn.stderr.log` normally.
+- `/home/git/gitlab/log/` contains `application.log`, `production.log`, `sidekiq.log`, `unicorn.stdout.log`, `githost.log`, `satellites.log`, and `unicorn.stderr.log` normally.
 
 gitlab-shell
 
diff --git a/doc/install/installation.md b/doc/install/installation.md
index 55b6f216dde..6e2bb4191ca 100644
--- a/doc/install/installation.md
+++ b/doc/install/installation.md
@@ -216,6 +216,10 @@ We recommend using a PostgreSQL database. For MySQL check [MySQL setup guide](da
     sudo chmod -R u+rwX,go-w log/
     sudo chmod -R u+rwX tmp/
 
+    # Create directory for satellites
+    sudo -u git -H mkdir /home/git/gitlab-satellites
+    sudo chmod u+rwx,g=rx,o-rwx /home/git/gitlab-satellites
+
     # Make sure GitLab can write to the tmp/pids/ and tmp/sockets/ directories
     sudo chmod -R u+rwX tmp/pids/
     sudo chmod -R u+rwX tmp/sockets/
diff --git a/doc/install/requirements.md b/doc/install/requirements.md
index e44ce25b6b4..a78590d512a 100644
--- a/doc/install/requirements.md
+++ b/doc/install/requirements.md
@@ -40,7 +40,7 @@ We love [JRuby](http://jruby.org/) and [Rubinius](http://rubini.us/) but GitLab
 
 ### Storage
 
-The necessary hard drive space largely depends on the size of the repos you want to store in GitLab but as a *rule of thumb* you should have at least as much free space as all your repos combined take up. 
+The necessary hard drive space largely depends on the size of the repos you want to store in GitLab but as a *rule of thumb* you should have at least twice as much free space as all your repos combined take up. You need twice the storage because [GitLab satellites](structure.md) contain an extra copy of each repo.
 
 If you want to be flexible about growing your hard drive space in the future consider mounting it using LVM so you can add more hard drives when you need them.
 
@@ -93,7 +93,7 @@ To change the Unicorn workers when you have the Omnibus package please see [the
 
 ## Database
 
-If you want to run the database separately, the **recommended** database size is **1 MB per user**.
+If you want to run the database separately expect a size of about 1 MB per user.
 
 ## Redis and Sidekiq
 
diff --git a/doc/install/structure.md b/doc/install/structure.md
index d58b0040eef..5c03f073c18 100644
--- a/doc/install/structure.md
+++ b/doc/install/structure.md
@@ -6,14 +6,16 @@ This is the directory structure you will end up with following the instructions
     |   |-- git
     |       |-- .ssh
     |       |-- gitlab
+    |       |-- gitlab-satellites
     |       |-- gitlab-shell
     |       |-- repositories
 
 * `/home/git/.ssh` - contains openssh settings.  Specifically the `authorized_keys` file managed by gitlab-shell.
 * `/home/git/gitlab` - GitLab core software.
+* `/home/git/gitlab-satellites` - checked out repositories for merge requests and file editing from web UI.  This can be treated as a temporary files directory.
 * `/home/git/gitlab-shell` - Core add-on component of GitLab.  Maintains SSH cloning and other functionality.
 * `/home/git/repositories` - bare repositories for all projects organized by namespace.  This is where the git repositories which are pushed/pulled are maintained for all projects.  **This area is critical data for projects.  [Keep a backup](../raketasks/backup_restore.md)**
 
-*Note: the default locations for repositories can be configured in `config/gitlab.yml` of GitLab and `config.yml` of gitlab-shell.*
+*Note: the default locations for gitlab-satellites and repositories can be configured in `config/gitlab.yml` of GitLab and `config.yml` of gitlab-shell.*
 
 To see a more in-depth overview see the [GitLab architecture doc](../development/architecture.md).
diff --git a/doc/logs/logs.md b/doc/logs/logs.md
index 27937e51764..83c32b09253 100644
--- a/doc/logs/logs.md
+++ b/doc/logs/logs.md
@@ -51,6 +51,16 @@ December 03, 2014 13:20 -> ERROR -> Command failed [1]: /usr/bin/git --git-dir=/
 error: failed to push some refs to '/Users/vsizov/gitlab-development-kit/repositories/gitlabhq/gitlab_git.git'
 ```
 
+#### satellites.log
+This file lives in `/var/log/gitlab/gitlab-rails/satellites.log` for omnibus package or in `/home/git/gitlab/log/satellites.log` for installations from the source.
+
+In some cases GitLab should perform write actions to git repository, for example when it is needed to merge the merge request or edit a file with online editor. If something went wrong you can look into this file to find out what exactly happened.
+```
+October 07, 2014 11:36: Failed to create satellite for Chesley Weimann III / project1817
+October 07, 2014 11:36: PID: 1872: git clone /Users/vsizov/gitlab-development-kit/gitlab/tmp/tests/repositories/conrad6841/gitlabhq.git /Users/vsizov/gitlab-development-kit/gitlab/tmp/tests/gitlab-satellites/conrad6841/gitlabhq
+October 07, 2014 11:36: PID: 1872: -> fatal: repository '/Users/vsizov/gitlab-development-kit/gitlab/tmp/tests/repositories/conrad6841/gitlabhq.git' does not exist
+```
+
 #### sidekiq.log
 This file lives in `/var/log/gitlab/gitlab-rails/sidekiq.log` for omnibus package or in `/home/git/gitlab/log/sidekiq.log` for installations from the source.
 
@@ -89,4 +99,4 @@ W, [2015-02-13T07:16:01.313000 #9094]  WARN -- : Unicorn::WorkerKiller send SIGQ
 I, [2015-02-13T07:16:01.530733 #9047]  INFO -- : reaped #<Process::Status: pid 9094 exit 0> worker=1
 I, [2015-02-13T07:16:01.534501 #13379]  INFO -- : worker=1 spawned pid=13379
 I, [2015-02-13T07:16:01.534848 #13379]  INFO -- : worker=1 ready
-```
+```
\ No newline at end of file
diff --git a/doc/raketasks/maintenance.md b/doc/raketasks/maintenance.md
index d9dce2af480..69171cd1765 100644
--- a/doc/raketasks/maintenance.md
+++ b/doc/raketasks/maintenance.md
@@ -105,11 +105,24 @@ Log directory writable? ... yes
 Tmp directory writable? ... yes
 Init script exists? ... yes
 Init script up-to-date? ... yes
+Projects have satellites? ... yes
 Redis version >= 2.0.0? ... yes
 
 Checking GitLab ... Finished
 ```
 
+## (Re-)Create satellite repositories
+
+This will create satellite repositories for all your projects.
+
+If necessary, remove the `repo_satellites` directory and rerun the commands below.
+
+```
+sudo -u git -H mkdir -p /home/git/gitlab-satellites
+sudo -u git -H bundle exec rake gitlab:satellites:create RAILS_ENV=production
+sudo chmod u+rwx,g=rx,o-rwx /home/git/gitlab-satellites
+```
+
 ## Rebuild authorized_keys file
 
 In some case it is necessary to rebuild the `authorized_keys` file.
diff --git a/doc/workflow/README.md b/doc/workflow/README.md
index 5b8d72dfd34..3915198ad2a 100644
--- a/doc/workflow/README.md
+++ b/doc/workflow/README.md
@@ -13,5 +13,4 @@
 - [Project users](add-user/add-user.md)
 - [Protected branches](protected_branches.md)
 - [Web Editor](web_editor.md)
-- [Merge Requests](merge_requests.md)
 - ["Work In Progress" Merge Requests](wip_merge_requests.md)
diff --git a/doc/workflow/merge_requests.md b/doc/workflow/merge_requests.md
deleted file mode 100644
index 751e19da7f1..00000000000
--- a/doc/workflow/merge_requests.md
+++ /dev/null
@@ -1,40 +0,0 @@
-# Merge Requests
-
-Merge requests allow you to exchange changes you made to source code
-
-## Checkout merge requests locally
-
-Locate the section for your GitLab remote in the `.git/config` file. It looks like this:
-
-```
-[remote "origin"]
-  url = https://gitlab.com/gitlab-org/gitlab-ce.git
-  fetch = +refs/heads/*:refs/remotes/origin/*
-```
-
-Now add the line `fetch = +refs/merge-requests/*/head:refs/remotes/origin/merge-requests/*` to this section. 
-
-It should looks like this: 
-
-```
-[remote "origin"]
-  url = https://gitlab.com/gitlab-org/gitlab-ce.git
-  fetch = +refs/heads/*:refs/remotes/origin/*
-  fetch = +refs/merge-requests/*/head:refs/remotes/origin/merge-requests/*
-```
-
-Now you can fetch all the merge requests requests:
-
-```
-$ git fetch origin
-From https://gitlab.com/gitlab-org/gitlab-ce.git
- * [new ref]         refs/merge-requests/1/head -> origin/merge-requests/1
- * [new ref]         refs/merge-requests/2/head -> origin/merge-requests/2
-...
-```
-
-To check out a particular merge request:
-
-```
-$ git checkout origin/merge-requests/1
-```
diff --git a/features/steps/dashboard/help.rb b/features/steps/dashboard/help.rb
index 800e869533e..86ab31a58ab 100644
--- a/features/steps/dashboard/help.rb
+++ b/features/steps/dashboard/help.rb
@@ -16,6 +16,6 @@ class Spinach::Features::DashboardHelp < Spinach::FeatureSteps
   end
 
   step 'Header "Rebuild project satellites" should have correct ids and links' do
-    header_should_have_correct_id_and_link(2, 'Check GitLab configuration', 'check-gitlab-configuration', '.documentation')
+    header_should_have_correct_id_and_link(2, '(Re-)Create satellite repositories', 're-create-satellite-repositories', '.documentation')
   end
 end
diff --git a/features/steps/dashboard/merge_requests.rb b/features/steps/dashboard/merge_requests.rb
index 28c8c6b6015..cec8d06adee 100644
--- a/features/steps/dashboard/merge_requests.rb
+++ b/features/steps/dashboard/merge_requests.rb
@@ -66,7 +66,7 @@ class Spinach::Features::DashboardMergeRequests < Spinach::FeatureSteps
 
   def authored_merge_request
     @authored_merge_request ||= create :merge_request,
-                                  source_branch: 'markdown',
+                                  source_branch: 'simple_merge_request',
                                   author: current_user,
                                   target_project: project,
                                   source_project: project
@@ -74,14 +74,14 @@ class Spinach::Features::DashboardMergeRequests < Spinach::FeatureSteps
 
   def other_merge_request
     @other_merge_request ||= create :merge_request,
-                              source_branch: 'fix',
+                              source_branch: '2_3_notes_fix',
                               target_project: project,
                               source_project: project
   end
 
   def authored_merge_request_from_fork
     @authored_merge_request_from_fork ||= create :merge_request,
-                                            source_branch: 'feature_conflict',
+                                            source_branch: 'basic_page',
                                             author: current_user,
                                             target_project: public_project,
                                             source_project: forked_project
@@ -89,7 +89,7 @@ class Spinach::Features::DashboardMergeRequests < Spinach::FeatureSteps
 
   def assigned_merge_request_from_fork
     @assigned_merge_request_from_fork ||= create :merge_request,
-                                            source_branch: 'markdown',
+                                            source_branch: 'basic_page_fix',
                                             assignee: current_user,
                                             target_project: public_project,
                                             source_project: forked_project
diff --git a/features/steps/project/forked_merge_requests.rb b/features/steps/project/forked_merge_requests.rb
index 2a333222fb2..3e97e84d116 100644
--- a/features/steps/project/forked_merge_requests.rb
+++ b/features/steps/project/forked_merge_requests.rb
@@ -9,6 +9,7 @@ class Spinach::Features::ProjectForkedMergeRequests < Spinach::FeatureSteps
     @project = Project.find_by(name: "Shop")
     @project ||= create(:project, name: "Shop")
     @project.team << [@user, :reporter]
+    @project.ensure_satellite_exists
   end
 
   step 'I have a project forked off of "Shop" called "Forked Shop"' do
diff --git a/features/steps/project/merge_requests.rb b/features/steps/project/merge_requests.rb
index f2198f58c13..a1a26abd8ca 100644
--- a/features/steps/project/merge_requests.rb
+++ b/features/steps/project/merge_requests.rb
@@ -198,10 +198,15 @@ class Spinach::Features::ProjectMergeRequests < Spinach::FeatureSteps
   end
 
   step 'merge request "Bug NS-05" is mergeable' do
+    merge_request.project.satellite.create
     merge_request.mark_as_mergeable
   end
 
   step 'I accept this merge request' do
+    Gitlab::Satellite::MergeAction.any_instance.stub(
+      merge!: true,
+    )
+
     page.within '.mr-state-widget' do
       click_button "Accept Merge Request"
     end
diff --git a/lib/api/files.rb b/lib/api/files.rb
index 308c84dd135..83581cd3990 100644
--- a/lib/api/files.rb
+++ b/lib/api/files.rb
@@ -3,26 +3,6 @@ module API
   class Files < Grape::API
     before { authenticate! }
 
-    helpers do
-      def commit_params(attrs)
-        {
-          file_path: attrs[:file_path],
-          current_branch: attrs[:branch_name],
-          target_branch: attrs[:branch_name],
-          commit_message: attrs[:commit_message],
-          file_content: attrs[:content],
-          file_content_encoding: attrs[:encoding]
-        }
-      end
-
-      def commit_response(attrs)
-        {
-          file_path: attrs[:file_path],
-          branch_name: attrs[:branch_name],
-        }
-      end
-    end
-
     resource :projects do
       # Get file from repository
       # File content is Base64 encoded
@@ -93,11 +73,17 @@ module API
 
         required_attributes! [:file_path, :branch_name, :content, :commit_message]
         attrs = attributes_for_keys [:file_path, :branch_name, :content, :commit_message, :encoding]
-        result = ::Files::CreateService.new(user_project, current_user, commit_params(attrs)).execute
+        branch_name = attrs.delete(:branch_name)
+        file_path = attrs.delete(:file_path)
+        result = ::Files::CreateService.new(user_project, current_user, attrs, branch_name, file_path).execute
 
         if result[:status] == :success
           status(201)
-          commit_response(attrs)
+
+          {
+            file_path: file_path,
+            branch_name: branch_name
+          }
         else
           render_api_error!(result[:message], 400)
         end
@@ -119,11 +105,17 @@ module API
 
         required_attributes! [:file_path, :branch_name, :content, :commit_message]
         attrs = attributes_for_keys [:file_path, :branch_name, :content, :commit_message, :encoding]
-        result = ::Files::UpdateService.new(user_project, current_user, commit_params(attrs)).execute
+        branch_name = attrs.delete(:branch_name)
+        file_path = attrs.delete(:file_path)
+        result = ::Files::UpdateService.new(user_project, current_user, attrs, branch_name, file_path).execute
 
         if result[:status] == :success
           status(200)
-          commit_response(attrs)
+
+          {
+            file_path: file_path,
+            branch_name: branch_name
+          }
         else
           http_status = result[:http_status] || 400
           render_api_error!(result[:message], http_status)
@@ -146,11 +138,17 @@ module API
 
         required_attributes! [:file_path, :branch_name, :commit_message]
         attrs = attributes_for_keys [:file_path, :branch_name, :commit_message]
-        result = ::Files::DeleteService.new(user_project, current_user, commit_params(attrs)).execute
+        branch_name = attrs.delete(:branch_name)
+        file_path = attrs.delete(:file_path)
+        result = ::Files::DeleteService.new(user_project, current_user, attrs, branch_name, file_path).execute
 
         if result[:status] == :success
           status(200)
-          commit_response(attrs)
+
+          {
+            file_path: file_path,
+            branch_name: branch_name
+          }
         else
           render_api_error!(result[:message], 400)
         end
diff --git a/lib/api/merge_requests.rb b/lib/api/merge_requests.rb
index 7412274b045..ce21c699e8f 100644
--- a/lib/api/merge_requests.rb
+++ b/lib/api/merge_requests.rb
@@ -198,11 +198,7 @@ module API
 
           if merge_request.open? && !merge_request.work_in_progress?
             if merge_request.can_be_merged?
-              commit_message = params[:merge_commit_message] || merge_request.merge_commit_message
-
-              ::MergeRequests::MergeService.new(merge_request.target_project, current_user).
-                execute(merge_request, commit_message)
-
+              merge_request.automerge!(current_user, params[:merge_commit_message] || merge_request.merge_commit_message)
               present merge_request, with: Entities::MergeRequest
             else
               render_api_error!('Branch cannot be merged', 405)
diff --git a/lib/gitlab.rb b/lib/gitlab.rb
index 6108697bc20..5fc1862c3e9 100644
--- a/lib/gitlab.rb
+++ b/lib/gitlab.rb
@@ -1,4 +1,5 @@
 require 'gitlab/git'
 
 module Gitlab
+  autoload :Satellite, 'gitlab/satellite/satellite'
 end
diff --git a/lib/gitlab/backend/shell.rb b/lib/gitlab/backend/shell.rb
index 14ee4701e7b..172d4902add 100644
--- a/lib/gitlab/backend/shell.rb
+++ b/lib/gitlab/backend/shell.rb
@@ -217,6 +217,20 @@ module Gitlab
       FileUtils.mv(full_path(old_name), full_path(new_name))
     end
 
+    # Remove GitLab Satellites for provided path (namespace or repo dir)
+    #
+    # Ex.
+    #   rm_satellites("gitlab")
+    #
+    #   rm_satellites("gitlab/gitlab-ci.git")
+    #
+    def rm_satellites(path)
+      raise ArgumentError.new("Path can't be blank") if path.blank?
+
+      satellites_path = File.join(Gitlab.config.satellites.path, path)
+      FileUtils.rm_r(satellites_path, force: true)
+    end
+
     def url_to_repo(path)
       Gitlab.config.gitlab_shell.ssh_path_prefix + "#{path}.git"
     end
diff --git a/lib/gitlab/satellite/action.rb b/lib/gitlab/satellite/action.rb
new file mode 100644
index 00000000000..489070f1a3f
--- /dev/null
+++ b/lib/gitlab/satellite/action.rb
@@ -0,0 +1,58 @@
+module Gitlab
+  module Satellite
+    class Action
+      DEFAULT_OPTIONS = { git_timeout: Gitlab.config.satellites.timeout.seconds }
+
+      attr_accessor :options, :project, :user
+
+      def initialize(user, project, options = {})
+        @options = DEFAULT_OPTIONS.merge(options)
+        @project = project
+        @user = user
+      end
+
+      protected
+
+      # * Sets a 30s timeout for Git
+      # * Locks the satellite repo
+      # * Yields the prepared satellite repo
+      def in_locked_and_timed_satellite
+        Gitlab::ShellEnv.set_env(user)
+
+        Grit::Git.with_timeout(options[:git_timeout]) do
+          project.satellite.lock do
+            return yield project.satellite.repo
+          end
+        end
+      rescue Errno::ENOMEM => ex
+        return handle_exception(ex)
+      rescue Grit::Git::GitTimeout => ex
+        return handle_exception(ex)
+      ensure
+        Gitlab::ShellEnv.reset_env
+      end
+
+      # * Recreates the satellite
+      # * Sets up Git variables for the user
+      #
+      # Note: use this within #in_locked_and_timed_satellite
+      def prepare_satellite!(repo)
+        project.satellite.clear_and_update!
+
+        if user
+          repo.config['user.name'] = user.name
+          repo.config['user.email'] = user.email
+        end
+      end
+
+      def default_options(options = {})
+        { raise: true, timeout: true }.merge(options)
+      end
+
+      def handle_exception(exception)
+        Gitlab::GitLogger.error(exception.message)
+        false
+      end
+    end
+  end
+end
diff --git a/lib/gitlab/satellite/compare_action.rb b/lib/gitlab/satellite/compare_action.rb
new file mode 100644
index 00000000000..46c98a8f4ca
--- /dev/null
+++ b/lib/gitlab/satellite/compare_action.rb
@@ -0,0 +1,44 @@
+module Gitlab
+  module Satellite
+    class BranchesWithoutParent < StandardError; end
+
+    class CompareAction < Action
+      def initialize(user, target_project, target_branch, source_project, source_branch)
+        super user, target_project
+
+        @target_project, @target_branch = target_project, target_branch
+        @source_project, @source_branch = source_project, source_branch
+      end
+
+      # Compare 2 repositories and return Gitlab::CompareResult object
+      def result
+        in_locked_and_timed_satellite do |target_repo|
+          prepare_satellite!(target_repo)
+          update_satellite_source_and_target!(target_repo)
+
+          Gitlab::CompareResult.new(compare(target_repo))
+        end
+      rescue Grit::Git::CommandFailed => ex
+        raise BranchesWithoutParent
+      end
+
+      private
+
+      # Assumes a satellite exists that is a fresh clone of the projects repo, prepares satellite for diffs
+      def update_satellite_source_and_target!(target_repo)
+        target_repo.remote_add('source', @source_project.repository.path_to_repo)
+        target_repo.remote_fetch('source')
+      rescue Grit::Git::CommandFailed => ex
+        handle_exception(ex)
+      end
+
+      def compare(repo)
+        @compare ||= Gitlab::Git::Compare.new(
+          Gitlab::Git::Repository.new(repo.path),
+          "origin/#{@target_branch}",
+          "source/#{@source_branch}"
+        )
+      end
+    end
+  end
+end
diff --git a/lib/gitlab/satellite/files/delete_file_action.rb b/lib/gitlab/satellite/files/delete_file_action.rb
new file mode 100644
index 00000000000..0d37b9dea85
--- /dev/null
+++ b/lib/gitlab/satellite/files/delete_file_action.rb
@@ -0,0 +1,50 @@
+require_relative 'file_action'
+
+module Gitlab
+  module Satellite
+    class DeleteFileAction < FileAction
+      # Deletes file and creates a new commit for it
+      #
+      # Returns false if committing the change fails
+      # Returns false if pushing from the satellite to bare repo failed or was rejected
+      # Returns true otherwise
+      def commit!(content, commit_message)
+        in_locked_and_timed_satellite do |repo|
+          prepare_satellite!(repo)
+
+          # create target branch in satellite at the corresponding commit from bare repo
+          repo.git.checkout({ raise: true, timeout: true, b: true }, ref, "origin/#{ref}")
+
+          # update the file in the satellite's working dir
+          file_path_in_satellite = File.join(repo.working_dir, file_path)
+
+          # Prevent relative links
+          unless safe_path?(file_path_in_satellite)
+            Gitlab::GitLogger.error("FileAction: Relative path not allowed")
+            return false
+          end
+
+          File.delete(file_path_in_satellite)
+
+          # add removed file
+          repo.remove(file_path_in_satellite)
+
+          # commit the changes
+          # will raise CommandFailed when commit fails
+          repo.git.commit(raise: true, timeout: true, a: true, m: commit_message)
+
+
+          # push commit back to bare repo
+          # will raise CommandFailed when push fails
+          repo.git.push({ raise: true, timeout: true }, :origin, ref)
+
+          # everything worked
+          true
+        end
+      rescue Grit::Git::CommandFailed => ex
+        Gitlab::GitLogger.error(ex.message)
+        false
+      end
+    end
+  end
+end
diff --git a/lib/gitlab/satellite/files/edit_file_action.rb b/lib/gitlab/satellite/files/edit_file_action.rb
new file mode 100644
index 00000000000..3cb9c0b5ecb
--- /dev/null
+++ b/lib/gitlab/satellite/files/edit_file_action.rb
@@ -0,0 +1,68 @@
+require_relative 'file_action'
+
+module Gitlab
+  module Satellite
+    # GitLab server-side file update and commit
+    class EditFileAction < FileAction
+      # Updates the files content and creates a new commit for it
+      #
+      # Returns false if the ref has been updated while editing the file
+      # Returns false if committing the change fails
+      # Returns false if pushing from the satellite to bare repo failed or was rejected
+      # Returns true otherwise
+      def commit!(content, commit_message, encoding, new_branch = nil)
+        in_locked_and_timed_satellite do |repo|
+          prepare_satellite!(repo)
+
+          # create target branch in satellite at the corresponding commit from bare repo
+          begin
+            repo.git.checkout({ raise: true, timeout: true, b: true }, ref, "origin/#{ref}")
+          rescue Grit::Git::CommandFailed => ex
+            log_and_raise(CheckoutFailed, ex.message)
+          end
+
+          # update the file in the satellite's working dir
+          file_path_in_satellite = File.join(repo.working_dir, file_path)
+
+          # Prevent relative links
+          unless safe_path?(file_path_in_satellite)
+            Gitlab::GitLogger.error("FileAction: Relative path not allowed")
+            return false
+          end
+
+          # Write file
+          write_file(file_path_in_satellite, content, encoding)
+
+          # commit the changes
+          # will raise CommandFailed when commit fails
+          begin
+            repo.git.commit(raise: true, timeout: true, a: true, m: commit_message)
+          rescue Grit::Git::CommandFailed => ex
+            log_and_raise(CommitFailed, ex.message)
+          end
+
+
+          target_branch = new_branch.present? ? "#{ref}:#{new_branch}" : ref
+
+          # push commit back to bare repo
+          # will raise CommandFailed when push fails
+          begin
+            repo.git.push({ raise: true, timeout: true }, :origin, target_branch)
+          rescue Grit::Git::CommandFailed => ex
+            log_and_raise(PushFailed, ex.message)
+          end
+
+          # everything worked
+          true
+        end
+      end
+
+      private
+
+      def log_and_raise(errorClass, message)
+        Gitlab::GitLogger.error(message)
+        raise(errorClass, message)
+      end
+    end
+  end
+end
diff --git a/lib/gitlab/satellite/files/file_action.rb b/lib/gitlab/satellite/files/file_action.rb
new file mode 100644
index 00000000000..6446b14568a
--- /dev/null
+++ b/lib/gitlab/satellite/files/file_action.rb
@@ -0,0 +1,25 @@
+module Gitlab
+  module Satellite
+    class FileAction < Action
+      attr_accessor :file_path, :ref
+
+      def initialize(user, project, ref, file_path)
+        super user, project
+        @file_path = file_path
+        @ref = ref
+      end
+
+      def safe_path?(path)
+        File.absolute_path(path) == path
+      end
+
+      def write_file(abs_file_path, content, file_encoding = 'text')
+        if file_encoding == 'base64'
+          File.open(abs_file_path, 'wb') { |f| f.write(Base64.decode64(content)) }
+        else
+          File.open(abs_file_path, 'w') { |f| f.write(content) }
+        end
+      end
+    end
+  end
+end
diff --git a/lib/gitlab/satellite/files/new_file_action.rb b/lib/gitlab/satellite/files/new_file_action.rb
new file mode 100644
index 00000000000..724dfa0d042
--- /dev/null
+++ b/lib/gitlab/satellite/files/new_file_action.rb
@@ -0,0 +1,67 @@
+require_relative 'file_action'
+
+module Gitlab
+  module Satellite
+    class NewFileAction < FileAction
+      # Updates the files content and creates a new commit for it
+      #
+      # Returns false if the ref has been updated while editing the file
+      # Returns false if committing the change fails
+      # Returns false if pushing from the satellite to bare repo failed or was rejected
+      # Returns true otherwise
+      def commit!(content, commit_message, encoding, new_branch = nil)
+        in_locked_and_timed_satellite do |repo|
+          prepare_satellite!(repo)
+
+          # create target branch in satellite at the corresponding commit from bare repo
+          current_ref =
+            if @project.empty_repo?
+              # skip this step if we want to add first file to empty repo
+              Satellite::PARKING_BRANCH
+            else
+              repo.git.checkout({ raise: true, timeout: true, b: true }, ref, "origin/#{ref}")
+              ref
+            end
+
+          file_path_in_satellite = File.join(repo.working_dir, file_path)
+          dir_name_in_satellite = File.dirname(file_path_in_satellite)
+
+          # Prevent relative links
+          unless safe_path?(file_path_in_satellite)
+            Gitlab::GitLogger.error("FileAction: Relative path not allowed")
+            return false
+          end
+
+          # Create dir if not exists
+          FileUtils.mkdir_p(dir_name_in_satellite)
+
+          # Write file
+          write_file(file_path_in_satellite, content, encoding)
+
+          # add new file
+          repo.add(file_path_in_satellite)
+
+          # commit the changes
+          # will raise CommandFailed when commit fails
+          repo.git.commit(raise: true, timeout: true, a: true, m: commit_message)
+
+          target_branch = if new_branch.present? && !@project.empty_repo?
+                            "#{ref}:#{new_branch}"
+                          else
+                            "#{current_ref}:#{ref}"
+                          end
+
+          # push commit back to bare repo
+          # will raise CommandFailed when push fails
+          repo.git.push({ raise: true, timeout: true }, :origin, target_branch)
+
+          # everything worked
+          true
+        end
+      rescue Grit::Git::CommandFailed => ex
+        Gitlab::GitLogger.error(ex.message)
+        false
+      end
+    end
+  end
+end
diff --git a/lib/gitlab/satellite/logger.rb b/lib/gitlab/satellite/logger.rb
new file mode 100644
index 00000000000..6f3f8255aca
--- /dev/null
+++ b/lib/gitlab/satellite/logger.rb
@@ -0,0 +1,13 @@
+module Gitlab
+  module Satellite
+    class Logger < Gitlab::Logger
+      def self.file_name
+        'satellites.log'
+      end
+
+      def format_message(severity, timestamp, progname, msg)
+        "#{timestamp.to_s(:long)}: #{msg}\n"
+      end
+    end
+  end
+end
diff --git a/lib/gitlab/satellite/merge_action.rb b/lib/gitlab/satellite/merge_action.rb
new file mode 100644
index 00000000000..f9bf286697e
--- /dev/null
+++ b/lib/gitlab/satellite/merge_action.rb
@@ -0,0 +1,146 @@
+module Gitlab
+  module Satellite
+    # GitLab server-side merge
+    class MergeAction < Action
+      attr_accessor :merge_request
+
+      def initialize(user, merge_request)
+        super user, merge_request.target_project
+        @merge_request = merge_request
+      end
+
+      # Checks if a merge request can be executed without user interaction
+      def can_be_merged?
+        in_locked_and_timed_satellite do |merge_repo|
+          prepare_satellite!(merge_repo)
+          merge_in_satellite!(merge_repo)
+        end
+      end
+
+      # Merges the source branch into the target branch in the satellite and
+      # pushes it back to the repository.
+      # It also removes the source branch if requested in the merge request (and this is permitted by the merge request).
+      #
+      # Returns false if the merge produced conflicts
+      # Returns false if pushing from the satellite to the repository failed or was rejected
+      # Returns true otherwise
+      def merge!(merge_commit_message = nil)
+        in_locked_and_timed_satellite do |merge_repo|
+          prepare_satellite!(merge_repo)
+          if merge_in_satellite!(merge_repo, merge_commit_message)
+            # push merge back to bare repo
+            # will raise CommandFailed when push fails
+            merge_repo.git.push(default_options, :origin, merge_request.target_branch)
+
+            # remove source branch
+            if merge_request.remove_source_branch?
+              # will raise CommandFailed when push fails
+              merge_repo.git.push(default_options, :origin, ":#{merge_request.source_branch}")
+            end
+            # merge, push and branch removal successful
+            true
+          end
+        end
+      rescue Grit::Git::CommandFailed => ex
+        handle_exception(ex)
+      end
+
+      def diff_in_satellite
+        in_locked_and_timed_satellite do |merge_repo|
+          prepare_satellite!(merge_repo)
+          update_satellite_source_and_target!(merge_repo)
+
+          # Only show what is new in the source branch compared to the target branch, not the other way around.
+          # The line below with merge_base is equivalent to diff with three dots (git diff branch1...branch2)
+          # From the git documentation: "git diff A...B" is equivalent to "git diff $(git-merge-base A B) B"
+          common_commit = merge_repo.git.native(:merge_base, default_options, ["origin/#{merge_request.target_branch}", "source/#{merge_request.source_branch}"]).strip
+          merge_repo.git.native(:diff, default_options, common_commit, "source/#{merge_request.source_branch}")
+        end
+      rescue Grit::Git::CommandFailed => ex
+        handle_exception(ex)
+      end
+
+      def diffs_between_satellite
+        in_locked_and_timed_satellite do |merge_repo|
+          prepare_satellite!(merge_repo)
+          update_satellite_source_and_target!(merge_repo)
+          if merge_request.for_fork?
+            repository = Gitlab::Git::Repository.new(merge_repo.path)
+            diffs = Gitlab::Git::Diff.between(
+              repository,
+              "source/#{merge_request.source_branch}",
+              "origin/#{merge_request.target_branch}"
+            )
+          else
+            raise "Attempt to determine diffs between for a non forked merge request in satellite MergeRequest.id:[#{merge_request.id}]"
+          end
+
+          return diffs
+        end
+      rescue Grit::Git::CommandFailed => ex
+        handle_exception(ex)
+      end
+
+      # Get commit as an email patch
+      def format_patch
+        in_locked_and_timed_satellite do |merge_repo|
+          prepare_satellite!(merge_repo)
+          update_satellite_source_and_target!(merge_repo)
+          patch = merge_repo.git.format_patch(default_options({ stdout: true }), "origin/#{merge_request.target_branch}..source/#{merge_request.source_branch}")
+        end
+      rescue Grit::Git::CommandFailed => ex
+        handle_exception(ex)
+      end
+
+      # Retrieve an array of commits between the source and the target
+      def commits_between
+        in_locked_and_timed_satellite do |merge_repo|
+          prepare_satellite!(merge_repo)
+          update_satellite_source_and_target!(merge_repo)
+          if merge_request.for_fork?
+            repository = Gitlab::Git::Repository.new(merge_repo.path)
+            commits = Gitlab::Git::Commit.between(
+              repository,
+              "origin/#{merge_request.target_branch}",
+              "source/#{merge_request.source_branch}"
+            )
+          else
+            raise "Attempt to determine commits between for a non forked merge request in satellite MergeRequest.id:[#{merge_request.id}]"
+          end
+
+          return commits
+        end
+      rescue Grit::Git::CommandFailed => ex
+        handle_exception(ex)
+      end
+
+      private
+      # Merges the source_branch into the target_branch in the satellite.
+      #
+      # Note: it will clear out the satellite before doing anything
+      #
+      # Returns false if the merge produced conflicts
+      # Returns true otherwise
+      def merge_in_satellite!(repo, message = nil)
+        update_satellite_source_and_target!(repo)
+
+        message ||= "Merge branch '#{merge_request.source_branch}' into '#{merge_request.target_branch}'"
+
+        # merge the source branch into the satellite
+        # will raise CommandFailed when merge fails
+        repo.git.merge(default_options({ no_ff: true }), "-m#{message}", "source/#{merge_request.source_branch}")
+      rescue Grit::Git::CommandFailed => ex
+        handle_exception(ex)
+      end
+
+      # Assumes a satellite exists that is a fresh clone of the projects repo, prepares satellite for merges, diffs etc
+      def update_satellite_source_and_target!(repo)
+        repo.remote_add('source', merge_request.source_project.repository.path_to_repo)
+        repo.remote_fetch('source')
+        repo.git.checkout(default_options({ b: true }), merge_request.target_branch, "origin/#{merge_request.target_branch}")
+      rescue Grit::Git::CommandFailed => ex
+        handle_exception(ex)
+      end
+    end
+  end
+end
diff --git a/lib/gitlab/satellite/satellite.rb b/lib/gitlab/satellite/satellite.rb
new file mode 100644
index 00000000000..398643d68de
--- /dev/null
+++ b/lib/gitlab/satellite/satellite.rb
@@ -0,0 +1,148 @@
+module Gitlab
+  module Satellite
+    autoload :DeleteFileAction, 'gitlab/satellite/files/delete_file_action'
+    autoload :EditFileAction,   'gitlab/satellite/files/edit_file_action'
+    autoload :FileAction,       'gitlab/satellite/files/file_action'
+    autoload :NewFileAction,    'gitlab/satellite/files/new_file_action'
+
+    class CheckoutFailed < StandardError; end
+    class CommitFailed < StandardError; end
+    class PushFailed < StandardError; end
+
+    class Satellite
+      include Gitlab::Popen
+
+      PARKING_BRANCH = "__parking_branch"
+
+      attr_accessor :project
+
+      def initialize(project)
+        @project = project
+      end
+
+      def log(message)
+        Gitlab::Satellite::Logger.error(message)
+      end
+
+      def clear_and_update!
+        project.ensure_satellite_exists
+
+        @repo = nil
+        clear_working_dir!
+        delete_heads!
+        remove_remotes!
+        update_from_source!
+      end
+
+      def create
+        output, status = popen(%W(git clone -- #{project.repository.path_to_repo} #{path}),
+                               Gitlab.config.satellites.path)
+
+        log("PID: #{project.id}: git clone #{project.repository.path_to_repo} #{path}")
+        log("PID: #{project.id}: -> #{output}")
+
+        if status.zero?
+          true
+        else
+          log("Failed to create satellite for #{project.name_with_namespace}")
+          false
+        end
+      end
+
+      def exists?
+        File.exists? path
+      end
+
+      # * Locks the satellite
+      # * Changes the current directory to the satellite's working dir
+      # * Yields
+      def lock
+        project.ensure_satellite_exists
+
+        File.open(lock_file, "w+") do |f|
+          begin
+            f.flock File::LOCK_EX
+            yield
+          ensure
+            f.flock File::LOCK_UN
+          end
+        end
+      end
+
+      def lock_file
+        create_locks_dir unless File.exists?(lock_files_dir)
+        File.join(lock_files_dir, "satellite_#{project.id}.lock")
+      end
+
+      def path
+        File.join(Gitlab.config.satellites.path, project.path_with_namespace)
+      end
+
+      def repo
+        project.ensure_satellite_exists
+
+        @repo ||= Grit::Repo.new(path)
+      end
+
+      def destroy
+        FileUtils.rm_rf(path)
+      end
+
+      private
+
+      # Clear the working directory
+      def clear_working_dir!
+        repo.git.reset(hard: true)
+        repo.git.clean(f: true, d: true, x: true)
+      end
+
+      # Deletes all branches except the parking branch
+      #
+      # This ensures we have no name clashes or issues updating branches when
+      # working with the satellite.
+      def delete_heads!
+        heads = repo.heads.map(&:name)
+
+        # update or create the parking branch
+        repo.git.checkout(default_options({ B: true }), PARKING_BRANCH)
+
+        # remove the parking branch from the list of heads ...
+        heads.delete(PARKING_BRANCH)
+        # ... and delete all others
+        heads.each { |head| repo.git.branch(default_options({ D: true }), head) }
+      end
+
+      # Deletes all remotes except origin
+      #
+      # This ensures we have no remote name clashes or issues updating branches when
+      # working with the satellite.
+      def remove_remotes!
+        remotes = repo.git.remote.split(' ')
+        remotes.delete('origin')
+        remotes.each { |name| repo.git.remote(default_options,'rm', name)}
+      end
+
+      # Updates the satellite from bare repo
+      #
+      # Note: this will only update remote branches (i.e. origin/*)
+      def update_from_source!
+        repo.git.remote(default_options, 'set-url', :origin, project.repository.path_to_repo)
+        repo.git.fetch(default_options, :origin)
+      end
+
+      def default_options(options = {})
+        { raise: true, timeout: true }.merge(options)
+      end
+
+      # Create directory for storing
+      # satellites lock files
+      def create_locks_dir
+        FileUtils.mkdir_p(lock_files_dir)
+      end
+
+      def lock_files_dir
+        @lock_files_dir ||= File.join(Gitlab.config.satellites.path, "tmp")
+      end
+    end
+  end
+end
diff --git a/lib/tasks/gitlab/check.rake b/lib/tasks/gitlab/check.rake
index 8acb6a7fd19..badb47c6779 100644
--- a/lib/tasks/gitlab/check.rake
+++ b/lib/tasks/gitlab/check.rake
@@ -25,6 +25,7 @@ namespace :gitlab do
       check_init_script_exists
       check_init_script_up_to_date
       check_projects_have_namespace
+      check_satellites_exist
       check_redis_version
       check_ruby_version
       check_git_version
@@ -237,6 +238,37 @@ namespace :gitlab do
       end
     end
 
+    def check_satellites_exist
+      print "Projects have satellites? ... "
+
+      unless Project.count > 0
+        puts "can't check, you have no projects".magenta
+        return
+      end
+      puts ""
+
+      Project.find_each(batch_size: 100) do |project|
+        print sanitized_message(project)
+
+        if project.satellite.exists?
+          puts "yes".green
+        elsif project.empty_repo?
+          puts "can't create, repository is empty".magenta
+        else
+          puts "no".red
+          try_fixing_it(
+            sudo_gitlab("bundle exec rake gitlab:satellites:create RAILS_ENV=production"),
+            "If necessary, remove the tmp/repo_satellites directory ...",
+            "... and rerun the above command"
+          )
+          for_more_information(
+            "doc/raketasks/maintenance.md "
+          )
+          fix_and_rerun
+        end
+      end
+    end
+
     def check_log_writable
       print "Log directory writable? ... "
 
@@ -307,6 +339,7 @@ namespace :gitlab do
       check_repo_base_is_not_symlink
       check_repo_base_user_and_group
       check_repo_base_permissions
+      check_satellites_permissions
       check_repos_hooks_directory_is_link
       check_gitlab_shell_self_test
 
@@ -384,6 +417,29 @@ namespace :gitlab do
       end
     end
 
+    def check_satellites_permissions
+      print "Satellites access is drwxr-x---? ... "
+
+      satellites_path = Gitlab.config.satellites.path
+      unless File.exists?(satellites_path)
+        puts "can't check because of previous errors".magenta
+        return
+      end
+
+      if File.stat(satellites_path).mode.to_s(8).ends_with?("0750")
+        puts "yes".green
+      else
+        puts "no".red
+        try_fixing_it(
+          "sudo chmod u+rwx,g=rx,o-rwx #{satellites_path}",
+        )
+        for_more_information(
+          see_installation_guide_section "GitLab"
+        )
+        fix_and_rerun
+      end
+    end
+
     def check_repo_base_user_and_group
       gitlab_shell_ssh_user = Gitlab.config.gitlab_shell.ssh_user
       gitlab_shell_owner_group = Gitlab.config.gitlab_shell.owner_group
diff --git a/lib/tasks/gitlab/enable_automerge.rake b/lib/tasks/gitlab/enable_automerge.rake
new file mode 100644
index 00000000000..3dade9d75b8
--- /dev/null
+++ b/lib/tasks/gitlab/enable_automerge.rake
@@ -0,0 +1,39 @@
+namespace :gitlab do
+  namespace :satellites do
+    desc "GitLab | Create satellite repos"
+    task create: :environment do
+      create_satellites
+    end
+  end
+
+  def create_satellites
+    warn_user_is_not_gitlab
+
+    print "Creating satellites for ..."
+    unless Project.count > 0
+      puts "skipping, because you have no projects".magenta
+      return
+    end
+    puts ""
+
+    Project.find_each(batch_size: 100) do |project|
+      print "#{project.name_with_namespace.yellow} ... "
+
+      unless project.repo_exists?
+        puts "skipping, because the repo is empty".magenta
+        next
+      end
+
+      if project.satellite.exists?
+        puts "exists already".green
+      else
+        print "\n... "
+        if project.satellite.create
+          puts "created".green
+        else
+          puts "error".red
+        end
+      end
+    end
+  end
+end
diff --git a/spec/lib/gitlab/reference_extractor_spec.rb b/spec/lib/gitlab/reference_extractor_spec.rb
index 088e34f050c..f921dd9cc09 100644
--- a/spec/lib/gitlab/reference_extractor_spec.rb
+++ b/spec/lib/gitlab/reference_extractor_spec.rb
@@ -25,7 +25,7 @@ describe Gitlab::ReferenceExtractor do
     project.team << [@u_bar, :guest]
 
     subject.analyze(%Q{
-      Inline code: `@foo`
+      Inline code: `@foo` 
 
       Code block:
 
@@ -33,7 +33,7 @@ describe Gitlab::ReferenceExtractor do
       @bar
       ```
 
-      Quote:
+      Quote: 
 
       > @offteam
     })
@@ -49,8 +49,8 @@ describe Gitlab::ReferenceExtractor do
   end
 
   it 'accesses valid merge requests' do
-    @m0 = create(:merge_request, source_project: project, target_project: project, source_branch: 'markdown')
-    @m1 = create(:merge_request, source_project: project, target_project: project, source_branch: 'feature_conflict')
+    @m0 = create(:merge_request, source_project: project, target_project: project, source_branch: 'aaa')
+    @m1 = create(:merge_request, source_project: project, target_project: project, source_branch: 'bbb')
 
     subject.analyze("!999, !#{@m1.iid}, and !#{@m0.iid}.")
     expect(subject.merge_requests).to eq([@m1, @m0])
diff --git a/spec/lib/gitlab/satellite/action_spec.rb b/spec/lib/gitlab/satellite/action_spec.rb
new file mode 100644
index 00000000000..0a93676edc3
--- /dev/null
+++ b/spec/lib/gitlab/satellite/action_spec.rb
@@ -0,0 +1,116 @@
+require 'spec_helper'
+
+describe 'Gitlab::Satellite::Action' do
+  let(:project) { create(:project) }
+  let(:user) { create(:user) }
+
+  describe '#prepare_satellite!' do
+    it 'should be able to fetch timeout from conf' do
+      expect(Gitlab::Satellite::Action::DEFAULT_OPTIONS[:git_timeout]).to eq(30.seconds)
+    end
+
+    it 'create a repository with a parking branch and one remote: origin' do
+      repo = project.satellite.repo
+
+      #now lets dirty it up
+
+      starting_remote_count = repo.git.list_remotes.size
+      expect(starting_remote_count).to be >= 1
+      #kind of hookey way to add a second remote
+      origin_uri = repo.git.remote({ v: true }).split(" ")[1]
+
+      repo.git.remote({ raise: true }, 'add', 'another-remote', origin_uri)
+      repo.git.branch({ raise: true }, 'a-new-branch')
+
+      expect(repo.heads.size).to be > (starting_remote_count)
+      expect(repo.git.remote().split(" ").size).to be > (starting_remote_count)
+
+      repo.git.config({}, "user.name", "#{user.name} -- foo")
+      repo.git.config({}, "user.email", "#{user.email} -- foo")
+      expect(repo.config['user.name']).to eq("#{user.name} -- foo")
+      expect(repo.config['user.email']).to eq("#{user.email} -- foo")
+
+
+      #These must happen in the context of the satellite directory...
+      satellite_action = Gitlab::Satellite::Action.new(user, project)
+      project.satellite.lock do
+        #Now clean it up, use send to get around prepare_satellite! being protected
+        satellite_action.send(:prepare_satellite!, repo)
+      end
+
+      #verify it's clean
+      heads = repo.heads.map(&:name)
+      expect(heads.size).to eq(1)
+      expect(heads.include?(Gitlab::Satellite::Satellite::PARKING_BRANCH)).to eq(true)
+      remotes = repo.git.remote().split(' ')
+      expect(remotes.size).to eq(1)
+      expect(remotes.include?('origin')).to eq(true)
+      expect(repo.config['user.name']).to eq(user.name)
+      expect(repo.config['user.email']).to eq(user.email)
+    end
+  end
+
+  describe '#in_locked_and_timed_satellite' do
+
+    it 'should make use of a lockfile' do
+      repo = project.satellite.repo
+      called = false
+
+      #set assumptions
+      FileUtils.rm_f(project.satellite.lock_file)
+
+      expect(File.exists?(project.satellite.lock_file)).to be_falsey
+
+      satellite_action = Gitlab::Satellite::Action.new(user, project)
+      satellite_action.send(:in_locked_and_timed_satellite) do |sat_repo|
+        expect(repo).to eq(sat_repo)
+        expect(File.exists? project.satellite.lock_file).to be_truthy
+        called = true
+      end
+
+      expect(called).to be_truthy
+
+    end
+
+    it 'should be able to use the satellite after locking' do
+      repo = project.satellite.repo
+      called = false
+
+      # Set base assumptions
+      if File.exists? project.satellite.lock_file
+        expect(FileLockStatusChecker.new(project.satellite.lock_file).flocked?).to be_falsey
+      end
+
+      satellite_action = Gitlab::Satellite::Action.new(user, project)
+      satellite_action.send(:in_locked_and_timed_satellite) do |sat_repo|
+        called = true
+        expect(repo).to eq(sat_repo)
+        expect(File.exists? project.satellite.lock_file).to be_truthy
+        expect(FileLockStatusChecker.new(project.satellite.lock_file).flocked?).to be_truthy
+      end
+
+      expect(called).to be_truthy
+      expect(FileLockStatusChecker.new(project.satellite.lock_file).flocked?).to be_falsey
+
+    end
+
+    class FileLockStatusChecker < File
+      def flocked?(&block)
+        status = flock LOCK_EX|LOCK_NB
+        case status
+        when false
+          return true
+        when 0
+          begin
+            block ? block.call : false
+          ensure
+            flock LOCK_UN
+          end
+        else
+          raise SystemCallError, status
+        end
+      end
+    end
+
+  end
+end
diff --git a/spec/lib/gitlab/satellite/merge_action_spec.rb b/spec/lib/gitlab/satellite/merge_action_spec.rb
new file mode 100644
index 00000000000..9b1c9a34e29
--- /dev/null
+++ b/spec/lib/gitlab/satellite/merge_action_spec.rb
@@ -0,0 +1,104 @@
+require 'spec_helper'
+
+describe 'Gitlab::Satellite::MergeAction' do
+  include RepoHelpers
+
+  let(:project) { create(:project, namespace: create(:group)) }
+  let(:fork_project) { create(:project, namespace: create(:group), forked_from_project: project) }
+  let(:merge_request) { create(:merge_request, source_project: project, target_project: project) }
+  let(:merge_request_fork) { create(:merge_request, source_project: fork_project, target_project: project) }
+
+  let(:merge_request_with_conflict) { create(:merge_request, :conflict, source_project: project, target_project: project) }
+  let(:merge_request_fork_with_conflict) { create(:merge_request, :conflict, source_project: project, target_project: project) }
+
+  describe '#commits_between' do
+    def verify_commits(commits, first_commit_sha, last_commit_sha)
+      commits.each { |commit| expect(commit.class).to eq(Gitlab::Git::Commit) }
+      expect(commits.first.id).to eq(first_commit_sha)
+      expect(commits.last.id).to eq(last_commit_sha)
+    end
+
+    context 'on fork' do
+      it 'should get proper commits between' do
+        commits = Gitlab::Satellite::MergeAction.new(merge_request_fork.author, merge_request_fork).commits_between
+        verify_commits(commits, sample_compare.commits.first, sample_compare.commits.last)
+      end
+    end
+
+    context 'between branches' do
+      it 'should raise exception -- not expected to be used by non forks' do
+        expect { Gitlab::Satellite::MergeAction.new(merge_request.author, merge_request).commits_between }.to raise_error(RuntimeError)
+      end
+    end
+  end
+
+  describe '#format_patch' do
+    def verify_content(patch)
+      sample_compare.commits.each do |commit|
+        expect(patch.include?(commit)).to be_truthy
+      end
+    end
+
+    context 'on fork' do
+      it 'should build a format patch' do
+        patch = Gitlab::Satellite::MergeAction.new(merge_request_fork.author, merge_request_fork).format_patch
+        verify_content(patch)
+      end
+    end
+
+    context 'between branches' do
+      it 'should build a format patch' do
+        patch = Gitlab::Satellite::MergeAction.new(merge_request_fork.author, merge_request).format_patch
+        verify_content(patch)
+      end
+    end
+  end
+
+  describe '#diffs_between_satellite tested against diff_in_satellite' do
+    def is_a_matching_diff(diff, diffs)
+      diff_count = diff.scan('diff --git').size
+      expect(diff_count).to be >= 1
+      expect(diffs.size).to eq(diff_count)
+      diffs.each do |a_diff|
+        expect(a_diff.class).to eq(Gitlab::Git::Diff)
+        expect(diff.include? a_diff.diff).to be_truthy
+      end
+    end
+
+    context 'on fork' do
+      it 'should get proper diffs' do
+        diffs = Gitlab::Satellite::MergeAction.new(merge_request_fork.author, merge_request_fork).diffs_between_satellite
+        diff = Gitlab::Satellite::MergeAction.new(merge_request.author, merge_request_fork).diff_in_satellite
+        is_a_matching_diff(diff, diffs)
+      end
+    end
+
+    context 'between branches' do
+      it 'should get proper diffs' do
+        expect{ Gitlab::Satellite::MergeAction.new(merge_request.author, merge_request).diffs_between_satellite }.to raise_error(RuntimeError)
+      end
+    end
+  end
+
+  describe '#can_be_merged?' do
+    context 'on fork' do
+      it do
+        expect(Gitlab::Satellite::MergeAction.new(merge_request_fork.author, merge_request_fork).can_be_merged?).to be_truthy
+      end
+
+      it do
+        expect(Gitlab::Satellite::MergeAction.new(merge_request_fork_with_conflict.author, merge_request_fork_with_conflict).can_be_merged?).to be_falsey
+      end
+    end
+
+    context 'between branches' do
+      it do
+        expect(Gitlab::Satellite::MergeAction.new(merge_request.author, merge_request).can_be_merged?).to be_truthy
+      end
+
+      it do
+        expect(Gitlab::Satellite::MergeAction.new(merge_request_with_conflict.author, merge_request_with_conflict).can_be_merged?).to be_falsey
+      end
+    end
+  end
+end
diff --git a/spec/models/merge_request_spec.rb b/spec/models/merge_request_spec.rb
index b91687bc09f..76f6d8c54c4 100644
--- a/spec/models/merge_request_spec.rb
+++ b/spec/models/merge_request_spec.rb
@@ -165,7 +165,7 @@ describe MergeRequest do
   end
 
   it_behaves_like 'an editable mentionable' do
-    subject { create(:merge_request) }
+    subject { create(:merge_request, source_project: project) }
 
     let(:backref_text) { "merge request #{subject.to_reference}" }
     let(:set_mentionable_text) { ->(txt){ subject.description = txt } }
diff --git a/spec/models/project_services/slack_service_spec.rb b/spec/models/project_services/slack_service_spec.rb
index 97b60e19e40..69466b11f09 100644
--- a/spec/models/project_services/slack_service_spec.rb
+++ b/spec/models/project_services/slack_service_spec.rb
@@ -67,7 +67,7 @@ describe SlackService do
       opts = {
         title: 'Awesome merge_request',
         description: 'please fix',
-        source_branch: 'feature',
+        source_branch: 'stable',
         target_branch: 'master'
       }
       merge_service = MergeRequests::CreateService.new(project,
diff --git a/spec/models/project_spec.rb b/spec/models/project_spec.rb
index 2fcbd5ae108..5d40754d59d 100644
--- a/spec/models/project_spec.rb
+++ b/spec/models/project_spec.rb
@@ -91,6 +91,7 @@ describe Project do
   describe 'Respond to' do
     it { is_expected.to respond_to(:url_to_repo) }
     it { is_expected.to respond_to(:repo_exists?) }
+    it { is_expected.to respond_to(:satellite) }
     it { is_expected.to respond_to(:update_merge_requests) }
     it { is_expected.to respond_to(:execute_hooks) }
     it { is_expected.to respond_to(:name_with_namespace) }
diff --git a/spec/models/repository_spec.rb b/spec/models/repository_spec.rb
index d96244f23e0..0927cde61a6 100644
--- a/spec/models/repository_spec.rb
+++ b/spec/models/repository_spec.rb
@@ -34,20 +34,6 @@ describe Repository do
     end
   end
 
-  describe :can_be_merged? do
-    context 'mergeable branches' do
-      subject { repository.can_be_merged?('0b4bc9a49b562e85de7cc9e834518ea6828729b9', 'master') }
-
-      it { is_expected.to be_truthy }
-    end
-
-    context 'non-mergeable branches' do
-      subject { repository.can_be_merged?('bb5206fee213d983da88c47f9cf4cc6caf9c66dc', 'feature') }
-
-      it { is_expected.to be_falsey }
-    end
-  end
-
   describe "search_files" do
     let(:results) { repository.search_files('feature', 'master') }
     subject { results }
diff --git a/spec/requests/api/files_spec.rb b/spec/requests/api/files_spec.rb
index 042e6352567..78f2cb56b02 100644
--- a/spec/requests/api/files_spec.rb
+++ b/spec/requests/api/files_spec.rb
@@ -49,6 +49,8 @@ describe API::API, api: true  do
     end
 
     it "should create a new file in project repo" do
+      expect_any_instance_of(Gitlab::Satellite::NewFileAction).to receive(:commit!).and_return(true)
+
       post api("/projects/#{project.id}/repository/files", user), valid_params
       expect(response.status).to eq(201)
       expect(json_response['file_path']).to eq('newfile.rb')
@@ -59,9 +61,8 @@ describe API::API, api: true  do
       expect(response.status).to eq(400)
     end
 
-    it "should return a 400 if editor fails to create file" do
-      allow_any_instance_of(Repository).to receive(:commit_file).
-        and_return(false)
+    it "should return a 400 if satellite fails to create file" do
+      expect_any_instance_of(Gitlab::Satellite::NewFileAction).to receive(:commit!).and_return(false)
 
       post api("/projects/#{project.id}/repository/files", user), valid_params
       expect(response.status).to eq(400)
@@ -79,6 +80,8 @@ describe API::API, api: true  do
     end
 
     it "should update existing file in project repo" do
+      expect_any_instance_of(Gitlab::Satellite::EditFileAction).to receive(:commit!).and_return(true)
+
       put api("/projects/#{project.id}/repository/files", user), valid_params
       expect(response.status).to eq(200)
       expect(json_response['file_path']).to eq(file_path)
@@ -88,6 +91,32 @@ describe API::API, api: true  do
       put api("/projects/#{project.id}/repository/files", user)
       expect(response.status).to eq(400)
     end
+
+    it 'should return a 400 if the checkout fails' do
+      expect_any_instance_of(Gitlab::Satellite::EditFileAction).to receive(:commit!).and_raise(Gitlab::Satellite::CheckoutFailed)
+
+      put api("/projects/#{project.id}/repository/files", user), valid_params
+      expect(response.status).to eq(400)
+
+      ref = valid_params[:branch_name]
+      expect(response.body).to match("ref '#{ref}' could not be checked out")
+    end
+
+    it 'should return a 409 if the file was not modified' do
+      expect_any_instance_of(Gitlab::Satellite::EditFileAction).to receive(:commit!).and_raise(Gitlab::Satellite::CommitFailed)
+
+      put api("/projects/#{project.id}/repository/files", user), valid_params
+      expect(response.status).to eq(409)
+      expect(response.body).to match("Maybe there was nothing to commit?")
+    end
+
+    it 'should return a 409 if the push fails' do
+      expect_any_instance_of(Gitlab::Satellite::EditFileAction).to receive(:commit!).and_raise(Gitlab::Satellite::PushFailed)
+
+      put api("/projects/#{project.id}/repository/files", user), valid_params
+      expect(response.status).to eq(409)
+      expect(response.body).to match("Maybe the file was changed by another process?")
+    end
   end
 
   describe "DELETE /projects/:id/repository/files" do
@@ -100,6 +129,7 @@ describe API::API, api: true  do
     end
 
     it "should delete existing file in project repo" do
+      expect_any_instance_of(Gitlab::Satellite::DeleteFileAction).to receive(:commit!).and_return(true)
       delete api("/projects/#{project.id}/repository/files", user), valid_params
       expect(response.status).to eq(200)
       expect(json_response['file_path']).to eq(file_path)
@@ -110,8 +140,8 @@ describe API::API, api: true  do
       expect(response.status).to eq(400)
     end
 
-    it "should return a 400 if fails to create file" do
-      allow_any_instance_of(Repository).to receive(:remove_file).and_return(false)
+    it "should return a 400 if satellite fails to create file" do
+      expect_any_instance_of(Gitlab::Satellite::DeleteFileAction).to receive(:commit!).and_return(false)
 
       delete api("/projects/#{project.id}/repository/files", user), valid_params
       expect(response.status).to eq(400)
diff --git a/spec/requests/api/merge_requests_spec.rb b/spec/requests/api/merge_requests_spec.rb
index 942768fa254..29db035b2de 100644
--- a/spec/requests/api/merge_requests_spec.rb
+++ b/spec/requests/api/merge_requests_spec.rb
@@ -148,7 +148,7 @@ describe API::API, api: true  do
       it "should return merge_request" do
         post api("/projects/#{project.id}/merge_requests", user),
              title: 'Test merge_request',
-             source_branch: 'feature_conflict',
+             source_branch: 'stable',
              target_branch: 'master',
              author: user,
              labels: 'label, label2'
@@ -171,20 +171,20 @@ describe API::API, api: true  do
 
       it "should return 400 when target_branch is missing" do
         post api("/projects/#{project.id}/merge_requests", user),
-        title: "Test merge_request", source_branch: "markdown", author: user
+        title: "Test merge_request", source_branch: "stable", author: user
         expect(response.status).to eq(400)
       end
 
       it "should return 400 when title is missing" do
         post api("/projects/#{project.id}/merge_requests", user),
-        target_branch: 'master', source_branch: 'markdown'
+        target_branch: 'master', source_branch: 'stable'
         expect(response.status).to eq(400)
       end
 
       it 'should return 400 on invalid label names' do
         post api("/projects/#{project.id}/merge_requests", user),
              title: 'Test merge_request',
-             source_branch: 'markdown',
+             source_branch: 'stable',
              target_branch: 'master',
              author: user,
              labels: 'label, ?'
@@ -198,7 +198,7 @@ describe API::API, api: true  do
         before do
           post api("/projects/#{project.id}/merge_requests", user),
                title: 'Test merge_request',
-               source_branch: 'feature_conflict',
+               source_branch: 'stable',
                target_branch: 'master',
                author: user
           @mr = MergeRequest.all.last
@@ -208,7 +208,7 @@ describe API::API, api: true  do
           expect do
             post api("/projects/#{project.id}/merge_requests", user),
                  title: 'New test merge_request',
-                 source_branch: 'feature_conflict',
+                 source_branch: 'stable',
                  target_branch: 'master',
                  author: user
           end.to change { MergeRequest.count }.by(0)
@@ -228,8 +228,7 @@ describe API::API, api: true  do
 
       it "should return merge_request" do
         post api("/projects/#{fork_project.id}/merge_requests", user2),
-          title: 'Test merge_request', source_branch: "feature_conflict", target_branch: "master",
-          author: user2, target_project_id: project.id, description: 'Test description for Test merge_request'
+        title: 'Test merge_request', source_branch: "stable", target_branch: "master", author: user2, target_project_id: project.id, description: 'Test description for Test merge_request'
         expect(response.status).to eq(201)
         expect(json_response['title']).to eq('Test merge_request')
         expect(json_response['description']).to eq('Test description for Test merge_request')
@@ -259,7 +258,7 @@ describe API::API, api: true  do
 
       it "should return 400 when title is missing" do
         post api("/projects/#{fork_project.id}/merge_requests", user2),
-        target_branch: 'master', source_branch: 'markdown', author: user2, target_project_id: project.id
+        target_branch: 'master', source_branch: 'stable', author: user2, target_project_id: project.id
         expect(response.status).to eq(400)
       end
 
@@ -268,7 +267,7 @@ describe API::API, api: true  do
           post api("/projects/#{project.id}/merge_requests", user),
                title: 'Test merge_request',
                target_branch: 'master',
-               source_branch: 'markdown',
+               source_branch: 'stable',
                author: user,
                target_project_id: fork_project.id
           expect(response.status).to eq(422)
@@ -278,7 +277,7 @@ describe API::API, api: true  do
           post api("/projects/#{fork_project.id}/merge_requests", user2),
                title: 'Test merge_request',
                target_branch: 'master',
-               source_branch: 'markdown',
+               source_branch: 'stable',
                author: user2,
                target_project_id: unrelated_project.id
           expect(response.status).to eq(422)
@@ -287,7 +286,7 @@ describe API::API, api: true  do
 
       it "should return 201 when target_branch is specified and for the same project" do
         post api("/projects/#{fork_project.id}/merge_requests", user2),
-        title: 'Test merge_request', target_branch: 'master', source_branch: 'markdown', author: user2, target_project_id: fork_project.id
+        title: 'Test merge_request', target_branch: 'master', source_branch: 'stable', author: user2, target_project_id: fork_project.id
         expect(response.status).to eq(201)
       end
     end
@@ -303,6 +302,9 @@ describe API::API, api: true  do
 
   describe "PUT /projects/:id/merge_request/:merge_request_id/merge" do
     it "should return merge_request in case of success" do
+      allow_any_instance_of(MergeRequest).
+        to receive_messages(can_be_merged?: true, automerge!: true)
+
       put api("/projects/#{project.id}/merge_request/#{merge_request.id}/merge", user)
 
       expect(response.status).to eq(200)
diff --git a/spec/routing/project_routing_spec.rb b/spec/routing/project_routing_spec.rb
index 82f62a8709c..0040718d9be 100644
--- a/spec/routing/project_routing_spec.rb
+++ b/spec/routing/project_routing_spec.rb
@@ -210,8 +210,8 @@ end
 
 #               diffs_namespace_project_merge_request GET      /:namespace_id/:project_id/merge_requests/:id/diffs(.:format)               projects/merge_requests#diffs
 #             commits_namespace_project_merge_request GET      /:namespace_id/:project_id/merge_requests/:id/commits(.:format)             projects/merge_requests#commits
-#           merge_namespace_project_merge_request POST     /:namespace_id/:project_id/merge_requests/:id/merge(.:format)           projects/merge_requests#merge
-#     merge_check_namespace_project_merge_request GET      /:namespace_id/:project_id/merge_requests/:id/merge_check(.:format)     projects/merge_requests#merge_check
+#           automerge_namespace_project_merge_request POST     /:namespace_id/:project_id/merge_requests/:id/automerge(.:format)           projects/merge_requests#automerge
+#     automerge_check_namespace_project_merge_request GET      /:namespace_id/:project_id/merge_requests/:id/automerge_check(.:format)     projects/merge_requests#automerge_check
 #           ci_status_namespace_project_merge_request GET      /:namespace_id/:project_id/merge_requests/:id/ci_status(.:format)           projects/merge_requests#ci_status
 # toggle_subscription_namespace_project_merge_request POST     /:namespace_id/:project_id/merge_requests/:id/toggle_subscription(.:format) projects/merge_requests#toggle_subscription
 #        branch_from_namespace_project_merge_requests GET      /:namespace_id/:project_id/merge_requests/branch_from(.:format)             projects/merge_requests#branch_from
@@ -233,15 +233,15 @@ describe Projects::MergeRequestsController, 'routing' do
     expect(get('/gitlab/gitlabhq/merge_requests/1/commits')).to route_to('projects/merge_requests#commits', namespace_id: 'gitlab', project_id: 'gitlabhq', id: '1')
   end
 
-  it 'to #merge' do
-    expect(post('/gitlab/gitlabhq/merge_requests/1/merge')).to route_to(
-      'projects/merge_requests#merge',
+  it 'to #automerge' do
+    expect(post('/gitlab/gitlabhq/merge_requests/1/automerge')).to route_to(
+      'projects/merge_requests#automerge',
       namespace_id: 'gitlab', project_id: 'gitlabhq', id: '1'
     )
   end
 
-  it 'to #merge_check' do
-    expect(get('/gitlab/gitlabhq/merge_requests/1/merge_check')).to route_to('projects/merge_requests#merge_check', namespace_id: 'gitlab', project_id: 'gitlabhq', id: '1')
+  it 'to #automerge_check' do
+    expect(get('/gitlab/gitlabhq/merge_requests/1/automerge_check')).to route_to('projects/merge_requests#automerge_check', namespace_id: 'gitlab', project_id: 'gitlabhq', id: '1')
   end
 
   it 'to #branch_from' do
diff --git a/spec/services/merge_requests/create_service_spec.rb b/spec/services/merge_requests/create_service_spec.rb
index cc64d69361e..d9bfdf64308 100644
--- a/spec/services/merge_requests/create_service_spec.rb
+++ b/spec/services/merge_requests/create_service_spec.rb
@@ -10,7 +10,7 @@ describe MergeRequests::CreateService do
         {
           title: 'Awesome merge_request',
           description: 'please fix',
-          source_branch: 'feature',
+          source_branch: 'stable',
           target_branch: 'master'
         }
       end
diff --git a/spec/services/merge_requests/merge_service_spec.rb b/spec/services/merge_requests/merge_service_spec.rb
index 7b564d34d7b..0a25fb12f4e 100644
--- a/spec/services/merge_requests/merge_service_spec.rb
+++ b/spec/services/merge_requests/merge_service_spec.rb
@@ -24,6 +24,11 @@ describe MergeRequests::MergeService do
       it { expect(merge_request).to be_valid }
       it { expect(merge_request).to be_merged }
 
+      it 'should execute hooks with merge action' do
+        expect(service).to have_received(:execute_hooks).
+                               with(merge_request, 'merge')
+      end
+
       it 'should send email to user2 about merge of new merge_request' do
         email = ActionMailer::Base.deliveries.last
         expect(email.to.first).to eq(user2.email)
diff --git a/spec/support/mentionable_shared_examples.rb b/spec/support/mentionable_shared_examples.rb
index e3de0afb448..f0717e61781 100644
--- a/spec/support/mentionable_shared_examples.rb
+++ b/spec/support/mentionable_shared_examples.rb
@@ -9,7 +9,7 @@ def common_mentionable_setup
   let(:author)  { subject.author }
 
   let(:mentioned_issue)  { create(:issue, project: project) }
-  let!(:mentioned_mr)     { create(:merge_request, :simple, source_project: project) }
+  let(:mentioned_mr)     { create(:merge_request, :simple, source_project: project) }
   let(:mentioned_commit) { project.commit }
 
   let(:ext_proj)   { create(:project, :public) }