diff --git a/magit.el b/magit.el
index db8cffa..d516924 100644
--- a/magit.el
+++ b/magit.el
@@ -2136,9 +2136,11 @@ in log buffer."
 	(magit-section-info sec))))
 
 (defun magit-manual-merge (rev)
-  (interactive (list (magit-read-rev "Manually merge" (magit-guess-branch))))
+  (interactive (list (magit-read-rev (concat "Manually merge"
+                                             (if current-prefix-arg " (squashed)" ""))
+                                     (magit-guess-branch))))
   (if rev
-      (magit-run-git "merge" "--no-ff" "--no-commit"
+      (magit-run-git "merge" "--no-commit" (if current-prefix-arg "--squash" "--no-ff")
 		     (magit-rev-to-git rev))))
 
 (defun magit-automatic-merge (rev)
diff --git a/magit.texi b/magit.texi
index 773dc8f..dead6f0 100644
--- a/magit.texi
+++ b/magit.texi
@@ -503,9 +503,11 @@ Type @kbd{m} to initiate a manual merge, and type @kbd{M} for a
 automatic merge.
 
 A manual merge is useful when carefully merging a new feature that you
-want to review and test before even committing it.  A automatic merge
+want to review and test before even committing it.  An automatic merge
 is appropriate when you are on a feature branch and want to catch up
-with the master, say.
+with the master, say. If you would like to squash the merge (have git
+avoid creating a merge commit) then use a prefix argument with the
+command (@kbd{C-U m}).
 
 After initiating a manual merge, the header of the status buffer will
 remind you that the next commit will be a merge commit (with more than