diff --git a/NEWS b/NEWS
index d04585ec..1da87df9 100644
--- a/NEWS
+++ b/NEWS
@@ -1,6 +1,7 @@
 0.153
   OBS 2.7 only:
   - add "addchannels" and "enablechannel" commands
+  - support new package instances on branching when using -N parameter
 
 0.152
   - add support searching for groups via "group:" prefix
diff --git a/osc/commandline.py b/osc/commandline.py
index 9c3eb14e..27420d56 100644
--- a/osc/commandline.py
+++ b/osc/commandline.py
@@ -3221,7 +3221,8 @@ Please submit there instead, or use --nodevelproject to force direct submission.
         if len(args) >= 4:
             tpackage = args[3]
 
-        exists, targetprj, targetpkg, srcprj, srcpkg = \
+        try:
+          exists, targetprj, targetpkg, srcprj, srcpkg = \
                 branch_pkg(apiurl, args[0], args[1],
                            nodevelproject=opts.nodevelproject, rev=opts.revision,
                            target_project=tproject, target_package=tpackage,
@@ -3231,6 +3232,21 @@ Please submit there instead, or use --nodevelproject to force direct submission.
                            extend_package_names=opts.extend_package_names,
                            missingok=opts.new_package,
                            maintenance=opts.maintenance)
+        except oscerr.NotMissing as e:
+          print('NOTE: Package target exists already via project links, link will point to given project.')
+          print('      A submission will initialize a new instance.')
+          exists, targetprj, targetpkg, srcprj, srcpkg = \
+                branch_pkg(apiurl, args[0], args[1],
+                           nodevelproject=opts.nodevelproject, rev=opts.revision,
+                           target_project=tproject, target_package=tpackage,
+                           return_existing=opts.checkout, msg=opts.message or '',
+                           force=opts.force, noaccess=opts.noaccess,
+                           add_repositories=opts.add_repositories,
+                           extend_package_names=opts.extend_package_names,
+                           missingok=False,
+                           maintenance=opts.maintenance,
+                           newinstance=opts.new_package)
+          
         if exists:
             print('Using existing branch project: %s' % targetprj, file=sys.stderr)
 
diff --git a/osc/core.py b/osc/core.py
index 36201512..d2b59c1e 100644
--- a/osc/core.py
+++ b/osc/core.py
@@ -4956,7 +4956,7 @@ def attribute_branch_pkg(apiurl, attribute, maintained_update_project_attribute,
     return r
 
 
-def branch_pkg(apiurl, src_project, src_package, nodevelproject=False, rev=None, target_project=None, target_package=None, return_existing=False, msg='', force=False, noaccess=False, add_repositories=False, extend_package_names=False, missingok=False, maintenance=False):
+def branch_pkg(apiurl, src_project, src_package, nodevelproject=False, rev=None, target_project=None, target_package=None, return_existing=False, msg='', force=False, noaccess=False, add_repositories=False, extend_package_names=False, missingok=False, maintenance=False, newinstance=False):
     """
     Branch a package (via API call)
     """
@@ -4973,6 +4973,8 @@ def branch_pkg(apiurl, src_project, src_package, nodevelproject=False, rev=None,
         query['maintenance'] = "1"
     if missingok:
         query['missingok'] = "1"
+    if newinstance:
+        query['newinstance'] = "1"
     if extend_package_names:
         query['extend_package_names'] = "1"
     if rev:
@@ -4987,9 +4989,12 @@ def branch_pkg(apiurl, src_project, src_package, nodevelproject=False, rev=None,
     try:
         f = http_POST(u)
     except HTTPError as e:
+        root = ET.fromstring(e.read())
+        if missingok:
+           if root and root.get('code') == "not_missing":
+              raise oscerr.NotMissing("Package exists already via project link, but link will point to given project")
         if not return_existing:
             raise
-        root = ET.fromstring(e.read())
         summary = root.find('summary')
         if summary is None:
             raise oscerr.APIError('unexpected response:\n%s' % ET.tostring(root, encoding=ET_ENCODING))
diff --git a/osc/oscerr.py b/osc/oscerr.py
index 372d6462..559f80d1 100644
--- a/osc/oscerr.py
+++ b/osc/oscerr.py
@@ -68,6 +68,9 @@ class WrongOptions(OscBaseError):
 class NoWorkingCopy(OscBaseError):
     """Exception raised when directory is neither a project dir nor a package dir"""
 
+class NotMissing(OscBaseError):
+    """Exception raised when link target should not exist, but it does"""
+
 class WorkingCopyWrongVersion(OscBaseError):
     """Exception raised when working copy's .osc/_osclib_version doesn't match"""