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diff --git a/‎runtime/doc/diff.txt
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+24-9Lines changed: 24 additions & 9 deletions b/‎runtime/doc/diff.txt
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+24-9Lines changed: 24 additions & 9 deletions
diff --git a/‎runtime/doc/options.txt
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+24-7Lines changed: 24 additions & 7 deletions b/‎runtime/doc/options.txt
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diff --git a/‎runtime/doc/syntax.txt
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+4-1Lines changed: 4 additions & 1 deletion b/‎runtime/doc/syntax.txt
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diff --git a/‎runtime/doc/tags
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diff --git a/‎runtime/doc/version9.txt
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+13-7Lines changed: 13 additions & 7 deletions b/‎runtime/doc/version9.txt
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diff --git a/‎runtime/syntax/vim.vim
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diff --git a/‎src/change.c
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@@ -1,4 +1,4 @@
-*diff.txt*      For Vim version 9.1.  Last change: 2024 Feb 01
+*diff.txt*      For Vim version 9.1.  Last change: 2024 Mar 26
 
 
 		  VIM REFERENCE MANUAL    by Bram Moolenaar
@@ -226,14 +226,29 @@ The diffs are highlighted with these groups:
 |hl-DiffAdd|	DiffAdd		Added (inserted) lines.  These lines exist in
 				this buffer but not in another.
 |hl-DiffChange|	DiffChange	Changed lines.
-|hl-DiffText|	DiffText	Changed text inside a Changed line.  Vim
-				finds the first character that is different,
-				and the last character that is different
-				(searching from the end of the line).  The
-				text in between is highlighted.  This means
-				that parts in the middle that are still the
-				same are highlighted anyway.  The 'diffopt'
-				flags "iwhite" and "icase" are used here.
+|hl-DiffText|	DiffText	Changed text inside a Changed line.  Exact
+				behavior depends on the `inline:` setting in
+				'diffopt'.
+				With `inline:` set to "simple", Vim finds the
+				first character that is different, and the
+				last character that is different (searching
+				from the end of the line).  The text in
+				between is highlighted.  This means that parts
+				in the middle that are still the same are
+				highlighted anyway.  The 'diffopt' flags
+				"iwhite" and "icase" are used here.
+				With `inline:` set to "char" or "word", Vim
+				uses the internal diff library to perform a
+				detailed diff between the changed blocks and
+				highlight the exact difference between the
+				two.  Will respect any 'diffopt' flag that
+				affects internal diff.
+				Not used when `inline:` set to "none".
+|hl-DiffTextAdd|  DiffTextAdd	Added text inside a Changed line. Similar to
+				DiffText, but used when there is no
+				corresponding text in other buffers.  Will not
+				be used when `inline:` is set to "simple" or
+				"none".
 |hl-DiffDelete|	DiffDelete	Deleted lines.  Also called filler lines,
 				because they don't really exist in this
 				buffer.
 
@@ -1,4 +1,4 @@
-*options.txt*	For Vim version 9.1.  Last change: 2025 Mar 14
+*options.txt*	For Vim version 9.1.  Last change: 2025 Mar 26
 
 
 		  VIM REFERENCE MANUAL	  by Bram Moolenaar
@@ -2910,7 +2910,8 @@ A jump table for the options with a short description can be found at |Q_op|.
 	security reasons.
 
 						*'dip'* *'diffopt'*
-'diffopt' 'dip'		string	(default "internal,filler,closeoff")
+'diffopt' 'dip'		string	(default
+				 "internal,filler,closeoff,inline:simple")
 			global
 			{not available when compiled without the |+diff|
 			feature}
@@ -2975,6 +2976,21 @@ A jump table for the options with a short description can be found at |Q_op|.
 				Use the indent heuristic for the internal
 				diff library.
 
+		inline:{text}	Highlight inline differences within a change.
+				See |view-diffs|.  Supported values are:
+
+				none    Do not perform inline highlighting.
+				simple  Highlight from first different
+					character to the last one in each
+					line. This is the default if nothing
+					is set.
+				char    Use internal diff to perform a
+					character-wise diff and highlight the
+					difference.
+				word    Use internal diff to perform a
+					|word|-wise diff and highlight the
+					difference.
+
 		internal	Use the internal diff library.  This is
 				ignored when 'diffexpr' is set.  *E960*
 				When running out of memory when writing a
@@ -4392,10 +4408,10 @@ A jump table for the options with a short description can be found at |Q_op|.
 				     v:Visual,V:VisualNOS,w:WarningMsg,
 				     W:WildMenu,f:Folded,F:FoldColumn,
 				     A:DiffAdd,C:DiffChange,D:DiffDelete,
-				     T:DiffText,>:SignColumn,-:Conceal,
-				     B:SpellBad,P:SpellCap,R:SpellRare,
-				     L:SpellLocal,+:Pmenu,=:PmenuSel,
-				     k:PmenuMatch,<:PmenuMatchSel,
+				     T:DiffText,E:DiffTextAdd,>:SignColumn,
+				     -:Conceal,B:SpellBad,P:SpellCap,
+				     R:SpellRare, L:SpellLocal,+:Pmenu,
+				     =:PmenuSel, k:PmenuMatch,<:PmenuMatchSel,
 				     [:PmenuKind,]:PmenuKindSel,
 				     {:PmenuExtra,}:PmenuExtraSel,
 				     x:PmenuSbar,X:PmenuThumb,*:TabLine,
@@ -4447,7 +4463,8 @@ A jump table for the options with a short description can be found at |Q_op|.
 	|hl-DiffAdd|	 A  added line in diff mode
 	|hl-DiffChange|	 C  changed line in diff mode
 	|hl-DiffDelete|	 D  deleted line in diff mode
-	|hl-DiffText|	 T  inserted text in diff mode
+	|hl-DiffText|	 T  changed text in diff mode
+	|hl-DiffTextAdd|   E  inserted text in diff mode
 	|hl-SignColumn|	 >  column used for |signs|
 	|hl-Conceal|	 -  the placeholders used for concealed characters
 			    (see 'conceallevel')
 
@@ -1,4 +1,4 @@
-*syntax.txt*	For Vim version 9.1.  Last change: 2025 Mar 21
+*syntax.txt*	For Vim version 9.1.  Last change: 2025 Mar 26
 
 
 		  VIM REFERENCE MANUAL	  by Bram Moolenaar
@@ -5832,6 +5832,9 @@ DiffChange	Diff mode: Changed line. |diff.txt|
 DiffDelete	Diff mode: Deleted line. |diff.txt|
 							*hl-DiffText*
 DiffText	Diff mode: Changed text within a changed line. |diff.txt|
+							*hl-DiffTextAdd*
+DiffTextAdd	Diff mode: Added text within a changed line.  Linked to
+		|hl-DiffText| by default. |diff.txt|
 							*hl-EndOfBuffer*
 EndOfBuffer	Filler lines (~) after the last line in the buffer.
 		By default, this is highlighted like |hl-NonText|.
 
@@ -8205,6 +8205,7 @@ hl-DiffAdd	syntax.txt	/*hl-DiffAdd*
 hl-DiffChange	syntax.txt	/*hl-DiffChange*
 hl-DiffDelete	syntax.txt	/*hl-DiffDelete*
 hl-DiffText	syntax.txt	/*hl-DiffText*
+hl-DiffTextAdd	syntax.txt	/*hl-DiffTextAdd*
 hl-Directory	syntax.txt	/*hl-Directory*
 hl-EndOfBuffer	syntax.txt	/*hl-EndOfBuffer*
 hl-ErrorMsg	syntax.txt	/*hl-ErrorMsg*
 
@@ -1,4 +1,4 @@
-*version9.txt*  For Vim version 9.1.  Last change: 2025 Mar 23
+*version9.txt*  For Vim version 9.1.  Last change: 2025 Mar 26
 
 
 		  VIM REFERENCE MANUAL    by Bram Moolenaar
@@ -41553,6 +41553,16 @@ Enum support for Vim9 script |:enum|
 
 Support for protected _new() method
 
+Diff mode ~
+---------
+Include the "linematch" algorithm for the 'diffopt' setting.  This aligns
+changes between buffers on similar lines improving the diff highlighting in
+Vim
+
+Improve the diff highlighting for changes within a line.  Configurable using
+the "inline" sub option value for the 'diffopt' setting, with "inline:simple"
+being added to the default "diffopt" value (but this does not change how diff
+mode works).
 							*new-other-9.2*
 Other new features ~
 ------------------
@@ -41570,10 +41580,6 @@ Support highlighting the matched text and the completion kind for insert-mode
 completion and command-line completion in |ins-completion-menu|, see
 |complete-items|
 
-Include the "linematch" algorithm for the 'diffopt' setting.  This aligns
-changes between buffers on similar lines improving the diff highlighting in
-Vim
-
 Support for the |Tuple| data type in Vim script and Vim9 script.
 
 							*changed-9.2*
@@ -41590,7 +41596,6 @@ Default values: ~
 - the default value of the 'keyprotocol' option has been updated and support
   for the ghostty terminal emulator (using kitty protocol) has been added
 
-
 Completion: ~
 - allow to complete directories from 'cdpath' for |:cd| and similar commands,
   add the "cd_in_path" completion type for e.g. |:command-complete| and
@@ -41702,7 +41707,8 @@ Autocommands: ~
 
 Highlighting: ~
 
-|hl-ComplMatchIns|	matched text of the currently inserted completion.
+|hl-ComplMatchIns|	matched text of the currently inserted completion
+|hl-DiffTextAdd|	added text within a changed line
 |hl-MsgArea|		highlighting of the Command-line and messages area
 |hl-PmenuMatch|		Popup menu: highlighting of matched text
 |hl-PmenuMatchSel|	Popup menu: highlighting of matched text in selected
 
@@ -123,7 +123,7 @@ syn keyword vimGroup contained	Comment Constant String Character Number Boolean
 
 " Default highlighting groups {{{2
 " GEN_SYN_VIM: vimHLGroup, START_STR='syn keyword vimHLGroup contained', END_STR=''
-syn keyword vimHLGroup contained ErrorMsg IncSearch ModeMsg NonText StatusLine StatusLineNC EndOfBuffer VertSplit VisualNOS DiffText PmenuSbar TabLineSel TabLineFill Cursor lCursor QuickFixLine CursorLineSign CursorLineFold CurSearch PmenuKind PmenuKindSel PmenuMatch PmenuMatchSel PmenuExtra PmenuExtraSel PopupSelected MessageWindow PopupNotification Normal Directory LineNr CursorLineNr MoreMsg Question Search SpellBad SpellCap SpellRare SpellLocal PmenuThumb Pmenu PmenuSel SpecialKey Title WarningMsg WildMenu Folded FoldColumn SignColumn Visual DiffAdd DiffChange DiffDelete TabLine CursorColumn CursorLine ColorColumn MatchParen StatusLineTerm StatusLineTermNC ToolbarLine ToolbarButton Menu Tooltip Scrollbar CursorIM LineNrAbove LineNrBelow
+syn keyword vimHLGroup contained ErrorMsg IncSearch ModeMsg NonText StatusLine StatusLineNC EndOfBuffer VertSplit VisualNOS DiffText DiffTextAdd PmenuSbar TabLineSel TabLineFill Cursor lCursor QuickFixLine CursorLineSign CursorLineFold CurSearch PmenuKind PmenuKindSel PmenuMatch PmenuMatchSel PmenuExtra PmenuExtraSel PopupSelected MessageWindow PopupNotification Normal Directory LineNr CursorLineNr MoreMsg Question Search SpellBad SpellCap SpellRare SpellLocal PmenuThumb Pmenu PmenuSel SpecialKey Title WarningMsg WildMenu Folded FoldColumn SignColumn Visual DiffAdd DiffChange DiffDelete TabLine CursorColumn CursorLine ColorColumn MatchParen StatusLineTerm StatusLineTermNC ToolbarLine ToolbarButton Menu Tooltip Scrollbar CursorIM LineNrAbove LineNrBelow
 syn match vimHLGroup contained "\<Conceal\>"
 syn case match
 
 
@@ -476,7 +476,10 @@ changed_common(
 #endif
 #ifdef FEAT_DIFF
     if (curwin->w_p_diff && diff_internal())
+    {
 	curtab->tp_diff_update = TRUE;
+	diff_update_line(lnum);
+    }
 #endif
 
     // set the '. mark