diff --git a/README.mkd b/README.mkd
index ee2d3f1..66539df 100644
--- a/README.mkd
+++ b/README.mkd
@@ -12,6 +12,7 @@ Features:
 * Never saves the buffer.
 * Quick jumping between blocks of changed lines ("hunks").
 * Stage/undo/preview individual hunks.
+* Previews highlight intra-line changes.
 * Stage partial hunks.
 * Provides a hunk text object.
 * Diffs against index (default) or any commit.
diff --git a/autoload/gitgutter/diff_highlight.vim b/autoload/gitgutter/diff_highlight.vim
new file mode 100644
index 0000000..9004a78
--- /dev/null
+++ b/autoload/gitgutter/diff_highlight.vim
@@ -0,0 +1,100 @@
+" Calculates the changed portions of lines.  Based closely on diff-highlight
+" (included with git) - please note its caveats.
+"
+" https://github.com/git/git/blob/master/contrib/diff-highlight/DiffHighlight.pm
+
+
+" Returns a list of intra-line changed regions.
+" Each element is a list:
+"
+"   [
+"     line number (1-based),
+"     type ('+' or '-'),
+"     start column (1-based, inclusive),
+"     stop column (1-based, inclusive),
+"   ]
+"
+" Args:
+"   hunk_body - list of lines
+function! gitgutter#diff_highlight#process(hunk_body)
+  " Check whether we have the same number of lines added as removed.
+  let [removed, added] = [0, 0]
+  for line in a:hunk_body
+    if line[0] == '-'
+      let removed += 1
+    elseif line[0] == '+'
+      let added += 1
+    endif
+  endfor
+  if removed != added
+    return []
+  endif
+
+  let regions = []
+
+  for i in range(removed)
+    " pair lines by position
+    let rline = a:hunk_body[i]
+    let aline = a:hunk_body[i + removed]
+
+    let prefix = s:common_prefix(rline, aline)
+    let [rsuffix, asuffix] = s:common_suffix(rline, aline, prefix+1)
+
+    if (prefix != 0 || rsuffix != 0) && prefix+1 < rsuffix
+      call add(regions, [i+1, '-', prefix+1+1, rsuffix+1-1])
+    endif
+
+    if (prefix != 0 || asuffix != 0) && prefix+1 < asuffix
+      call add(regions, [i+1+removed, '+', prefix+1+1, asuffix+1-1])
+    endif
+  endfor
+
+  return regions
+endfunction
+
+
+" Returns 0-based index of last character of common prefix
+" Does not treat leading +/- as different.
+"
+" a, b - strings
+"
+function! s:common_prefix(a, b)
+  let len = min([len(a:a), len(a:b)])
+  " ignore initial +/-
+  for i in range(1, len - 1)
+    if a:a[i:i] != a:b[i:i]
+      return i - 1
+    endif
+  endfor
+  return i
+endfunction
+
+if $VIM_GITGUTTER_TEST
+  function! gitgutter#diff_highlight#common_prefix(a, b)
+    return s:common_prefix(a:a, a:b)
+  endfunction
+endif
+
+
+" Returns 0-based indices of start of common suffix
+"
+" a, b - strings
+" start - 0-based index to start from
+function! s:common_suffix(a, b, start)
+  let [sa, sb] = [len(a:a), len(a:b)]
+  while sa >= a:start && sb >= a:start
+    if a:a[sa] ==# a:b[sb]
+      let sa -= 1
+      let sb -= 1
+    else
+      break
+    endif
+  endwhile
+  return [sa+1, sb+1]
+endfunction
+
+if $VIM_GITGUTTER_TEST
+  function! gitgutter#diff_highlight#common_suffix(a, b, start)
+    return s:common_suffix(a:a, a:b, a:start)
+  endfunction
+endif
diff --git a/autoload/gitgutter/highlight.vim b/autoload/gitgutter/highlight.vim
index 5b14fc3..b7ee64b 100644
--- a/autoload/gitgutter/highlight.vim
+++ b/autoload/gitgutter/highlight.vim
@@ -102,6 +102,10 @@ function! gitgutter#highlight#define_highlights() abort
   highlight default link GitGutterChangeLineNr       CursorLineNr
   highlight default link GitGutterDeleteLineNr       CursorLineNr
   highlight default link GitGutterChangeDeleteLineNr CursorLineNr
+
+  " Highlights used intra line.
+  highlight GitGutterAddIntraLine    gui=reverse
+  highlight GitGutterDeleteIntraLine gui=reverse
 endfunction
 
 function! gitgutter#highlight#define_signs() abort
diff --git a/autoload/gitgutter/hunk.vim b/autoload/gitgutter/hunk.vim
index d34546f..d196d68 100644
--- a/autoload/gitgutter/hunk.vim
+++ b/autoload/gitgutter/hunk.vim
@@ -458,11 +458,20 @@ function! s:populate_hunk_preview_window(header, body)
       call nvim_buf_set_lines(winbufnr(s:winid), 0, -1, v:false, [])
       call nvim_buf_set_lines(winbufnr(s:winid), 0, -1, v:false, a:body)
       call nvim_buf_set_option(winbufnr(s:winid), 'modified', v:false)
+
+      let ns_id = nvim_create_namespace('GitGutter')
+      call nvim_buf_clear_namespace(winbufnr(s:winid), ns_id, 0, -1)
+      for region in gitgutter#diff_highlight#process(a:body)
+        let group = region[1] == '+' ? 'GitGutterAddIntraLine' : 'GitGutterDeleteIntraLine'
+        call nvim_buf_add_highlight(winbufnr(s:winid), ns_id, group, region[0]-1, region[2]-1, region[3])
+      endfor
+
       call nvim_win_set_cursor(s:winid, [1,0])
     endif
 
     if exists('*popup_create')
       call popup_settext(s:winid, a:body)
+      " TODO add intra line highlights
     endif
 
   else
@@ -472,6 +481,13 @@ function! s:populate_hunk_preview_window(header, body)
     %delete _
     call setline(1, a:body)
     setlocal nomodified
+
+    call clearmatches()
+    for region in gitgutter#diff_highlight#process(a:body)
+      let group = region[1] == '+' ? 'GitGutterAddIntraLine' : 'GitGutterDeleteIntraLine'
+      call matchaddpos(group, [[region[0], region[2], region[3]-region[2]+1]])
+    endfor
+
     1
   endif
 endfunction
diff --git a/test/test_gitgutter.vim b/test/test_gitgutter.vim
index f35be58..f978f2d 100644
--- a/test/test_gitgutter.vim
+++ b/test/test_gitgutter.vim
@@ -60,6 +60,9 @@ function SetUp()
   execute ':cd' s:test_repo
   edit! fixture.txt
   call gitgutter#sign#reset()
+
+  " FIXME why won't vim autoload the file?
+  execute 'source' '../../autoload/gitgutter/diff_highlight.vim'
 endfunction
 
 function TearDown()
@@ -910,3 +913,62 @@ function Test_quickfix()
 
   call s:assert_list_of_dicts(expected, getqflist())
 endfunction
+
+
+function Test_common_prefix()
+  " nothing in common
+  call assert_equal(0, gitgutter#diff_highlight#common_prefix('-abcde', '+pqrst'))
+  " something in common
+  call assert_equal(3, gitgutter#diff_highlight#common_prefix('-abcde', '+abcpq'))
+  " everything in common
+  call assert_equal(5, gitgutter#diff_highlight#common_prefix('-abcde', '+abcde'))
+  " different lengths
+  call assert_equal(2, gitgutter#diff_highlight#common_prefix('-abcde', '+abx'))
+  call assert_equal(2, gitgutter#diff_highlight#common_prefix('-abx',   '+abcde'))
+endfunction
+
+
+function Test_common_suffix()
+  " nothing in common
+  call assert_equal([6,6], gitgutter#diff_highlight#common_suffix('-abcde', '+pqrst', 0))
+  " something in common
+  call assert_equal([3,3], gitgutter#diff_highlight#common_suffix('-abcde', '+pqcde', 0))
+  " everything in common
+  call assert_equal([5,5], gitgutter#diff_highlight#common_suffix('-abcde', '+abcde', 5))
+  " different lengths
+  call assert_equal([4,2], gitgutter#diff_highlight#common_suffix('-abcde', '+xde', 0))
+  call assert_equal([2,4], gitgutter#diff_highlight#common_suffix('-xde',   '+abcde', 0))
+endfunction
+
+
+function Test_diff_highlight()
+  " Ignores mismatched number of added and removed lines.
+  call assert_equal([], gitgutter#diff_highlight#process(['-foo']))
+  call assert_equal([], gitgutter#diff_highlight#process(['+foo']))
+  call assert_equal([], gitgutter#diff_highlight#process(['-foo','-bar','+baz']))
+
+  " change in middle
+  let hunk = ['-foo bar baz', '+foo (bar) baz']
+  let expected = [[1, '-', 6, 8], [2, '+', 6, 10]]
+  call assert_equal(expected, gitgutter#diff_highlight#process(hunk))
+
+  " change at start
+  let hunk = ['-foo bar baz', '+(foo) bar baz']
+  let expected = [[1, '-', 2, 4], [2, '+', 2, 6]]
+  call assert_equal(expected, gitgutter#diff_highlight#process(hunk))
+
+  " change at end
+  let hunk = ['-foo bar baz', '+foo bar (baz)']
+  let expected = [[1, '-', 10, 12], [2, '+', 10, 14]]
+  call assert_equal(expected, gitgutter#diff_highlight#process(hunk))
+
+  " removed in middle
+  let hunk = ['-foo bar baz', '+foo baz']
+  let expected = [[1, '-', 8, 11]]
+  call assert_equal(expected, gitgutter#diff_highlight#process(hunk))
+
+  " added in middle
+  let hunk = ['-foo baz', '+foo bar baz']
+  let expected = [[2, '+', 8, 11]]
+  call assert_equal(expected, gitgutter#diff_highlight#process(hunk))
+endfunction