diff --git a/src/backend/optimizer/plan/setrefs.c b/src/backend/optimizer/plan/setrefs.c
index 6ea3505646..fa5969bbd5 100644
--- a/src/backend/optimizer/plan/setrefs.c
+++ b/src/backend/optimizer/plan/setrefs.c
@@ -2763,6 +2763,10 @@ search_indexed_tlist_for_sortgroupref(Expr *node,
  *	  to-be-updated relation) alone. Correspondingly inner_itlist is to be
  *	  EXCLUDED elements, outer_itlist = NULL and acceptable_rel the target
  *	  relation.
+ * 4) MERGE.  In this case, references to the source relation are to be
+ *    replaced with INNER_VAR references, and target Vars (the to-be-
+ *    modified relation) are left alone. So inner_itlist is to be
+ *    the source relation and acceptable_rel the target relatin.
  *
  * 'clauses' is the targetlist or list of join clauses
  * 'outer_itlist' is the indexed target list of the outer join relation,
diff --git a/src/backend/optimizer/prep/preptlist.c b/src/backend/optimizer/prep/preptlist.c
index 99ab3d7559..c1c3067365 100644
--- a/src/backend/optimizer/prep/preptlist.c
+++ b/src/backend/optimizer/prep/preptlist.c
@@ -107,14 +107,15 @@ preprocess_targetlist(PlannerInfo *root)
 		root->update_colnos = extract_update_targetlist_colnos(tlist);
 
 	/*
-	 * For non-inherited UPDATE/DELETE, register any junk column(s) needed to
-	 * allow the executor to identify the rows to be updated or deleted.  In
-	 * the inheritance case, we do nothing now, leaving this to be dealt with
-	 * when expand_inherited_rtentry() makes the leaf target relations.  (But
-	 * there might not be any leaf target relations, in which case we must do
-	 * this in distribute_row_identity_vars().)
+	 * For non-inherited UPDATE/DELETE/MERGE, register any junk column(s)
+	 * needed to allow the executor to identify the rows to be updated or
+	 * deleted.  In the inheritance case, we do nothing now, leaving this to
+	 * be dealt with when expand_inherited_rtentry() makes the leaf target
+	 * relations.  (But there might not be any leaf target relations, in which
+	 * case we must do this in distribute_row_identity_vars().)
 	 */
-	if ((command_type == CMD_UPDATE || command_type == CMD_DELETE) &&
+	if ((command_type == CMD_UPDATE || command_type == CMD_DELETE ||
+		 command_type == CMD_MERGE) &&
 		!target_rte->inh)
 	{
 		/* row-identity logic expects to add stuff to processed_tlist */
@@ -125,23 +126,15 @@ preprocess_targetlist(PlannerInfo *root)
 	}
 
 	/*
-	 * For MERGE we need to handle the target list for the target relation,
-	 * and also target list for each action (only INSERT/UPDATE matter).
+	 * For MERGE we also need to handle the target list for each INSERT and
+	 * UPDATE action separately.  In addition, we examine the qual of each
+	 * action and add any Vars there (other than those of the target rel) to
+	 * the subplan targetlist.
 	 */
 	if (command_type == CMD_MERGE)
 	{
 		ListCell   *l;
 
-		/*
-		 * For MERGE, add any junk column(s) needed to allow the executor to
-		 * identify the rows to be inserted or updated.
-		 */
-		root->processed_tlist = tlist;
-		add_row_identity_columns(root, result_relation,
-								 target_rte, target_relation);
-
-		tlist = root->processed_tlist;
-
 		/*
 		 * For MERGE, handle targetlist of each MergeAction separately. Give
 		 * the same treatment to MergeAction->targetList as we would have
@@ -151,6 +144,8 @@ preprocess_targetlist(PlannerInfo *root)
 		foreach(l, parse->mergeActionList)
 		{
 			MergeAction *action = (MergeAction *) lfirst(l);
+			List	   *vars;
+			ListCell   *l2;
 
 			if (action->commandType == CMD_INSERT)
 				action->targetList = expand_insert_targetlist(action->targetList,
@@ -158,6 +153,33 @@ preprocess_targetlist(PlannerInfo *root)
 			else if (action->commandType == CMD_UPDATE)
 				action->updateColnos =
 					extract_update_targetlist_colnos(action->targetList);
+
+			/*
+			 * Add resjunk entries for any Vars used in WHEN conditions that
+			 * belong to relations other than target.  (Note that aggregates,
+			 * window functions and placeholder vars are not possible in MERGE
+			 * WHEN clauses.)
+			 */
+			vars = pull_var_clause((Node *) list_concat(list_copy((List *) action->qual),
+														action->targetList),
+								   0);
+			foreach(l2, vars)
+			{
+				Var		   *var = (Var *) lfirst(l2);
+				TargetEntry *tle;
+
+				if (IsA(var, Var) && var->varno == result_relation)
+					continue;	/* don't need it */
+
+				if (tlist_member((Expr *) var, tlist))
+					continue;	/* already got it */
+
+				tle = makeTargetEntry((Expr *) var,
+									  list_length(tlist) + 1,
+									  NULL, true);
+				tlist = lappend(tlist, tle);
+			}
+			list_free(vars);
 		}
 	}
 
diff --git a/src/backend/parser/parse_merge.c b/src/backend/parser/parse_merge.c
index 5d0035a12b..9f2fe527c4 100644
--- a/src/backend/parser/parse_merge.c
+++ b/src/backend/parser/parse_merge.c
@@ -205,9 +205,11 @@ transformMergeStmt(ParseState *pstate, MergeStmt *stmt)
 					   pstate->p_target_nsitem->p_names->aliasname),
 				errdetail("The name is used both as MERGE target table and data source."));
 
-	qry->targetList = expandNSItemAttrs(pstate, nsitem, 0, false,
-										exprLocation(stmt->sourceRelation));
-
+	/*
+	 * There's no need for a targetlist here; it'll be set up by
+	 * preprocess_targetlist later.
+	 */
+	qry->targetList = NIL;
 	qry->rtable = pstate->p_rtable;
 
 	/*
diff --git a/src/test/regress/expected/merge.out b/src/test/regress/expected/merge.out
index 5954f10b8f..0fd037b45a 100644
--- a/src/test/regress/expected/merge.out
+++ b/src/test/regress/expected/merge.out
@@ -791,6 +791,19 @@ SELECT * FROM wq_target;
    1 |     299
 (1 row)
 
+-- check source-side whole-row references
+BEGIN;
+MERGE INTO wq_target t
+USING wq_source s ON (t.tid = s.sid)
+WHEN matched and t = s or t.tid = s.sid THEN
+	UPDATE SET balance = t.balance + s.balance;
+SELECT * FROM wq_target;
+ tid | balance 
+-----+---------
+   1 |     399
+(1 row)
+
+ROLLBACK;
 -- check if subqueries work in the conditions?
 MERGE INTO wq_target t
 USING wq_source s ON t.tid = s.sid
diff --git a/src/test/regress/sql/merge.sql b/src/test/regress/sql/merge.sql
index 6d05a2f39c..8815e0cc49 100644
--- a/src/test/regress/sql/merge.sql
+++ b/src/test/regress/sql/merge.sql
@@ -527,6 +527,15 @@ WHEN MATCHED AND t.balance = 199 OR s.balance > 100 THEN
 	UPDATE SET balance = t.balance + s.balance;
 SELECT * FROM wq_target;
 
+-- check source-side whole-row references
+BEGIN;
+MERGE INTO wq_target t
+USING wq_source s ON (t.tid = s.sid)
+WHEN matched and t = s or t.tid = s.sid THEN
+	UPDATE SET balance = t.balance + s.balance;
+SELECT * FROM wq_target;
+ROLLBACK;
+
 -- check if subqueries work in the conditions?
 MERGE INTO wq_target t
 USING wq_source s ON t.tid = s.sid