By default, target original repository if fork when creating new MR.

app/controllers/projects/merge_requests_controller.rb

@@ -60,7 +60,11 @@ class Projects::MergeRequestsController < Projects::ApplicationController
   def new
     @merge_request = MergeRequest.new(params[:merge_request])
     @merge_request.source_project = @project unless @merge_request.source_project
-    @merge_request.target_project = @project unless @merge_request.target_project
+    @merge_request.target_project ||= (@project.forked_from_project || @project)
+    @target_branches = @merge_request.target_project.nil? ? [] : @merge_request.target_project.repository.branch_names
+
+    @merge_request.target_branch ||= @merge_request.target_project.default_branch
+
     @source_project = @merge_request.source_project
     @merge_request
   end

app/helpers/merge_requests_helper.rb

 module MergeRequestsHelper
   def new_mr_path_from_push_event(event)
+    target_project = event.project.forked_from_project || event.project
     new_project_merge_request_path(
       event.project,
-      new_mr_from_push_event(event, event.project)
+      new_mr_from_push_event(event, target_project)
     )
   end
 

app/views/projects/merge_requests/_form.html.haml

@@ -25,7 +25,7 @@
         .clearfix
           .pull-left
             - projects =  @project.forked_from_project.nil? ? [@project] : [ @project,@project.forked_from_project]
-            = f.select(:target_project_id, options_from_collection_for_select(projects, 'id', 'path_with_namespace'), {}, { class: 'target_project select2 span3', disabled: @merge_request.persisted? })
+            = f.select(:target_project_id, options_from_collection_for_select(projects, 'id', 'path_with_namespace', f.object.target_project_id), {}, { class: 'target_project select2 span3', disabled: @merge_request.persisted? })
           .pull-left
              
             = f.select(:target_branch, @merge_request.target_branches, { include_blank: "Select branch" }, {class: 'target_branch select2 span2'})

features/project/forked_merge_requests.feature

@@ -32,3 +32,9 @@ Feature: Project Forked Merge Requests
     And I fill out an invalid "Merge Request On Forked Project" merge request
     And I submit the merge request
     Then I should see validation errors
+
+  @javascript
+  Scenario: Merge request should target fork repository by default
+    Given I visit project "Forked Shop" merge requests page
+    And I click link "New Merge Request"
+    Then the target repository should be the original repository
\ No newline at end of file

features/steps/project/project_forked_merge_requests.rb

@@ -159,8 +159,11 @@ class ProjectForkedMergeRequests < Spinach::FeatureSteps
   step 'I fill out an invalid "Merge Request On Forked Project" merge request' do
     #If this isn't filled in the rest of the validations won't be triggered
     fill_in "merge_request_title", with: "Merge Request On Forked Project"
+
+    select "Select branch", from: "merge_request_target_branch"
+
     find(:select, "merge_request_source_project_id", {}).value.should == @forked_project.id.to_s
-    find(:select, "merge_request_target_project_id", {}).value.should == @forked_project.id.to_s
+    find(:select, "merge_request_target_project_id", {}).value.should == project.id.to_s
     find(:select, "merge_request_source_branch", {}).value.should == ""
     find(:select, "merge_request_target_branch", {}).value.should == ""
   end
@@ -168,7 +171,10 @@ class ProjectForkedMergeRequests < Spinach::FeatureSteps
   step 'I should see validation errors' do
     page.should have_content "Source branch can't be blank"
     page.should have_content "Target branch can't be blank"
-    page.should have_content "Branch conflict You can not use same project/branch for source and target"
+  end
+
+  step 'the target repository should be the original repository' do
+    page.should have_select("merge_request_target_project_id", selected: project.path_with_namespace)
   end
 
   def project