diff --git a/plugin/settings.vim b/plugin/settings.vim
index 50e0983..0412abe 100644
--- a/plugin/settings.vim
+++ b/plugin/settings.vim
@@ -168,6 +168,11 @@ set modeline
 " Don't redraw during execution macros, registers, commands, etc.
 set lazyredraw
 
+" When in diff mode, use the patience algorithm for more readable diffs.
+if &diff
+  set diffopt+=algorithm:patience
+endif
+
 " Allow color schemes to do bright colors without forcing bold
 if &t_Co == 8 && $TERM !~# '^linux\|^Eterm'
   set t_Co=16