diff --git a/gix-diff/src/blob/platform.rs b/gix-diff/src/blob/platform.rs
index 495d23bd433..b64092c92e8 100644
--- a/gix-diff/src/blob/platform.rs
+++ b/gix-diff/src/blob/platform.rs
@@ -110,11 +110,25 @@ pub mod resource {
             }
         }
 
-        /// Produce an iterator over lines, separated by LF or CRLF, suitable to create tokens using
-        /// [`imara_diff::intern::InternedInput`].
+        /// Produce an iterator over lines, separated by LF or CRLF and thus keeping newlines.
+        ///
+        /// Note that this will cause unusual diffs if a file didn't end in newline but lines were added
+        /// on the other side.
+        ///
+        /// Suitable to create tokens using [`imara_diff::intern::InternedInput`].
         pub fn intern_source(&self) -> imara_diff::sources::ByteLines<'a, true> {
             crate::blob::sources::byte_lines_with_terminator(self.data.as_slice().unwrap_or_default())
         }
+
+        /// Produce an iterator over lines, but remove LF or CRLF.
+        ///
+        /// This produces the expected diffs when lines were added at the end of a file that didn't end
+        /// with a newline before the change.
+        ///
+        /// Suitable to create tokens using [`imara_diff::intern::InternedInput`].
+        pub fn intern_source_strip_newline_separators(&self) -> imara_diff::sources::ByteLines<'a, false> {
+            crate::blob::sources::byte_lines(self.data.as_slice().unwrap_or_default())
+        }
     }
 
     /// The data of a diffable resource, as it could be determined and computed previously.
@@ -228,8 +242,15 @@ pub mod prepare_diff {
 
     impl<'a> Outcome<'a> {
         /// Produce an instance of an interner which `git` would use to perform diffs.
+        ///
+        /// Note that newline separators will be removed to improve diff quality
+        /// at the end of files that didn't have a newline, but had lines added
+        /// past the end.
         pub fn interned_input(&self) -> imara_diff::intern::InternedInput<&'a [u8]> {
-            crate::blob::intern::InternedInput::new(self.old.intern_source(), self.new.intern_source())
+            crate::blob::intern::InternedInput::new(
+                self.old.intern_source_strip_newline_separators(),
+                self.new.intern_source_strip_newline_separators(),
+            )
         }
     }
 
diff --git a/gix/tests/gix/object/tree/diff.rs b/gix/tests/gix/object/tree/diff.rs
index 1109188d26f..36a25e86c17 100644
--- a/gix/tests/gix/object/tree/diff.rs
+++ b/gix/tests/gix/object/tree/diff.rs
@@ -59,10 +59,17 @@ fn changes_against_tree_modified() -> crate::Result {
             diff.lines(|hunk| {
                 match hunk {
                     lines::Change::Deletion { .. } => unreachable!("there was no deletion"),
-                    lines::Change::Addition { lines } => assert_eq!(
-                        lines,
-                        vec![expected_data[expected_previous_data.len()..].as_bytes().as_bstr()]
-                    ),
+                    lines::Change::Addition { lines } => {
+                        assert_eq!(lines.len(), 1);
+                        assert_eq!(
+                            lines[0],
+                            expected_data[expected_previous_data.len()..]
+                                .as_bytes()
+                                .as_bstr()
+                                .trim(),
+                            "diffed lines don't have newlines anymore"
+                        );
+                    }
                     lines::Change::Modification { .. } => unreachable!("there was no modification"),
                 };
                 Ok::<_, Infallible>(())