diff --git a/CHANGELOG.md b/CHANGELOG.md
index 5830dac0..d38f066b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,8 @@
 
 ## Unreleased
 
+- Add `.hg` (Mercurial) to the list of ignored directories when using
+  `--watch` (#1098 from @misery).
 - More improvements to the release tool (#1096 by @pd93)
 
 ## v3.23.0 - 2023-03-26