diff --git a/Documentation/diff-config.txt b/Documentation/diff-config.txt
index 6eaa45271c..9bf3e923cf 100644
--- a/Documentation/diff-config.txt
+++ b/Documentation/diff-config.txt
@@ -166,6 +166,11 @@ diff.tool::
 
 include::mergetools-diff.txt[]
 
+diff.compactionHeuristic::
+	Set this option to enable an experimental heuristic that
+	shifts the hunk boundary in an attempt to make the resulting
+	patch easier to read.
+
 diff.algorithm::
 	Choose a diff algorithm.  The variants are as follows:
 +
diff --git a/Documentation/diff-options.txt b/Documentation/diff-options.txt
index 3ad6404dbc..b513023cd7 100644
--- a/Documentation/diff-options.txt
+++ b/Documentation/diff-options.txt
@@ -63,6 +63,12 @@ ifndef::git-format-patch[]
 	Synonym for `-p --raw`.
 endif::git-format-patch[]
 
+--compaction-heuristic::
+--no-compaction-heuristic::
+	These are to help debugging and tuning an experimental
+	heuristic that shifts the hunk boundary in an attempt to
+	make the resulting patch easier to read.
+
 --minimal::
 	Spend extra time to make sure the smallest possible
 	diff is produced.
diff --git a/diff.c b/diff.c
index f62b7f73d8..05ca3ce08e 100644
--- a/diff.c
+++ b/diff.c
@@ -25,6 +25,7 @@
 #endif
 
 static int diff_detect_rename_default;
+static int diff_compaction_heuristic = 1;
 static int diff_rename_limit_default = 400;
 static int diff_suppress_blank_empty;
 static int diff_use_color_default = -1;
@@ -183,6 +184,10 @@ int git_diff_ui_config(const char *var, const char *value, void *cb)
 		diff_detect_rename_default = git_config_rename(var, value);
 		return 0;
 	}
+	if (!strcmp(var, "diff.compactionheuristic")) {
+		diff_compaction_heuristic = git_config_bool(var, value);
+		return 0;
+	}
 	if (!strcmp(var, "diff.autorefreshindex")) {
 		diff_auto_refresh_index = git_config_bool(var, value);
 		return 0;
@@ -3235,6 +3240,8 @@ void diff_setup(struct diff_options *options)
 	options->use_color = diff_use_color_default;
 	options->detect_rename = diff_detect_rename_default;
 	options->xdl_opts |= diff_algorithm;
+	if (diff_compaction_heuristic)
+		DIFF_XDL_SET(options, COMPACTION_HEURISTIC);
 
 	options->orderfile = diff_order_file_cfg;
 
@@ -3712,6 +3719,10 @@ int diff_opt_parse(struct diff_options *options, const char **av, int ac)
 		DIFF_XDL_SET(options, IGNORE_WHITESPACE_AT_EOL);
 	else if (!strcmp(arg, "--ignore-blank-lines"))
 		DIFF_XDL_SET(options, IGNORE_BLANK_LINES);
+	else if (!strcmp(arg, "--compaction-heuristic"))
+		DIFF_XDL_SET(options, COMPACTION_HEURISTIC);
+	else if (!strcmp(arg, "--no-compaction-heuristic"))
+		DIFF_XDL_CLR(options, COMPACTION_HEURISTIC);
 	else if (!strcmp(arg, "--patience"))
 		options->xdl_opts = DIFF_WITH_ALG(options, PATIENCE_DIFF);
 	else if (!strcmp(arg, "--histogram"))
diff --git a/xdiff/xdiff.h b/xdiff/xdiff.h
index c0339919cc..d1dbb2750a 100644
--- a/xdiff/xdiff.h
+++ b/xdiff/xdiff.h
@@ -41,6 +41,8 @@ extern "C" {
 
 #define XDF_IGNORE_BLANK_LINES (1 << 7)
 
+#define XDF_COMPACTION_HEURISTIC (1 << 8)
+
 #define XDL_EMIT_FUNCNAMES (1 << 0)
 #define XDL_EMIT_COMMON (1 << 1)
 #define XDL_EMIT_FUNCCONTEXT (1 << 2)
diff --git a/xdiff/xdiffi.c b/xdiff/xdiffi.c
index 748eeb9919..b3c6848875 100644
--- a/xdiff/xdiffi.c
+++ b/xdiff/xdiffi.c
@@ -400,6 +400,11 @@ static xdchange_t *xdl_add_change(xdchange_t *xscr, long i1, long i2, long chg1,
 }
 
 
+static int is_blank_line(xrecord_t **recs, long ix, long flags)
+{
+	return xdl_blankline(recs[ix]->ptr, recs[ix]->size, flags);
+}
+
 static int recs_match(xrecord_t **recs, long ixs, long ix, long flags)
 {
 	return (recs[ixs]->ha == recs[ix]->ha &&
@@ -411,6 +416,7 @@ static int recs_match(xrecord_t **recs, long ixs, long ix, long flags)
 int xdl_change_compact(xdfile_t *xdf, xdfile_t *xdfo, long flags) {
 	long ix, ixo, ixs, ixref, grpsiz, nrec = xdf->nrec;
 	char *rchg = xdf->rchg, *rchgo = xdfo->rchg;
+	unsigned int blank_lines;
 	xrecord_t **recs = xdf->recs;
 
 	/*
@@ -444,6 +450,7 @@ int xdl_change_compact(xdfile_t *xdf, xdfile_t *xdfo, long flags) {
 
 		do {
 			grpsiz = ix - ixs;
+			blank_lines = 0;
 
 			/*
 			 * If the line before the current change group, is equal to
@@ -478,6 +485,8 @@ int xdl_change_compact(xdfile_t *xdf, xdfile_t *xdfo, long flags) {
 			 * the group.
 			 */
 			while (ix < nrec && recs_match(recs, ixs, ix, flags)) {
+				blank_lines += is_blank_line(recs, ix, flags);
+
 				rchg[ixs++] = 0;
 				rchg[ix++] = 1;
 
@@ -504,6 +513,23 @@ int xdl_change_compact(xdfile_t *xdf, xdfile_t *xdfo, long flags) {
 			rchg[--ix] = 0;
 			while (rchgo[--ixo]);
 		}
+
+		/*
+		 * If a group can be moved back and forth, see if there is a
+		 * blank line in the moving space. If there is a blank line,
+		 * make sure the last blank line is the end of the group.
+		 *
+		 * As we already shifted the group forward as far as possible
+		 * in the earlier loop, we need to shift it back only if at all.
+		 */
+		if ((flags & XDF_COMPACTION_HEURISTIC) && blank_lines) {
+			while (ixs > 0 &&
+			       !is_blank_line(recs, ix - 1, flags) &&
+			       recs_match(recs, ixs - 1, ix - 1, flags)) {
+				rchg[--ixs] = 1;
+				rchg[--ix] = 0;
+			}
+		}
 	}
 
 	return 0;