As per the EGit User Guide, to use the merge tool, one should right-click on the resource with a merge conflict and then select Team > Merge Tool. However, when I do this, the Merge Tool option is greyed out. EGit is properly detecting the conflict and showing me both the icon and text label decorations for the file in conflict.
Any ideas?
It was disabled for me because I had some changes on my stash list.
$ git stash clear
fixed the problem for me.