diff --git a/org.eclipse.jgit.test/tst/org/eclipse/jgit/diff/DiffFormatterTest.java b/org.eclipse.jgit.test/tst/org/eclipse/jgit/diff/DiffFormatterTest.java
index 646e4d611..8dca7b426 100644
--- a/org.eclipse.jgit.test/tst/org/eclipse/jgit/diff/DiffFormatterTest.java
+++ b/org.eclipse.jgit.test/tst/org/eclipse/jgit/diff/DiffFormatterTest.java
@@ -45,13 +45,21 @@ package org.eclipse.jgit.diff;
 
 import static org.junit.Assert.assertEquals;
 
+import java.io.BufferedOutputStream;
+import java.io.ByteArrayOutputStream;
+import java.io.File;
+
+import org.eclipse.jgit.api.Git;
 import org.eclipse.jgit.diff.DiffEntry.ChangeType;
+import org.eclipse.jgit.dircache.DirCacheIterator;
 import org.eclipse.jgit.junit.TestRepository;
 import org.eclipse.jgit.lib.FileMode;
 import org.eclipse.jgit.lib.ObjectId;
 import org.eclipse.jgit.lib.RepositoryTestCase;
 import org.eclipse.jgit.patch.FileHeader;
 import org.eclipse.jgit.patch.HunkHeader;
+import org.eclipse.jgit.treewalk.FileTreeIterator;
+import org.eclipse.jgit.treewalk.filter.PathFilter;
 import org.eclipse.jgit.util.RawParseUtils;
 import org.eclipse.jgit.util.io.DisabledOutputStream;
 import org.junit.After;
@@ -247,6 +255,38 @@ public class DiffFormatterTest extends RepositoryTestCase {
 		assertEquals(0, hh.toEditList().size());
 	}
 
+	@Test
+	public void testDiff() throws Exception {
+		write(new File(db.getDirectory().getParent(), "test.txt"), "test");
+		File folder = new File(db.getDirectory().getParent(), "folder");
+		folder.mkdir();
+		write(new File(folder, "folder.txt"), "folder");
+		Git git = new Git(db);
+		git.add().addFilepattern(".").call();
+		git.commit().setMessage("Initial commit").call();
+		write(new File(folder, "folder.txt"), "folder change");
+
+		ByteArrayOutputStream os = new ByteArrayOutputStream();
+		DiffFormatter df = new DiffFormatter(new BufferedOutputStream(os));
+		df.setRepository(db);
+		df.setPathFilter(PathFilter.create("folder"));
+		DirCacheIterator oldTree = new DirCacheIterator(db.readDirCache());
+		FileTreeIterator newTree = new FileTreeIterator(db);
+		df.format(oldTree, newTree);
+		df.flush();
+
+		String actual = os.toString();
+		String expected =
+ "diff --git a/folder/folder.txt b/folder/folder.txt\n"
+				+ "index 0119635..95c4c65 100644\n"
+				+ "--- a/folder/folder.txt\n" + "+++ b/folder/folder.txt\n"
+				+ "@@ -1 +1 @@\n" + "-folder\n"
+				+ "\\ No newline at end of file\n" + "+folder change\n"
+				+ "\\ No newline at end of file\n";
+
+		assertEquals(expected.toString(), actual);
+	}
+
 	private String makeDiffHeader(String pathA, String pathB, ObjectId aId,
 			ObjectId bId) {
 		String a = aId.abbreviate(8).name();
diff --git a/org.eclipse.jgit.test/tst/org/eclipse/jgit/diff/RawTextTest.java b/org.eclipse.jgit.test/tst/org/eclipse/jgit/diff/RawTextTest.java
index 7e6e1354d..8d504e55d 100644
--- a/org.eclipse.jgit.test/tst/org/eclipse/jgit/diff/RawTextTest.java
+++ b/org.eclipse.jgit.test/tst/org/eclipse/jgit/diff/RawTextTest.java
@@ -163,6 +163,32 @@ public class RawTextTest {
 		assertEquals(new Edit(0, 2, 0, 1), e);
 	}
 
+	@Test
+	public void testComparatorReduceCommonStartButLastLineNoEol()
+			throws UnsupportedEncodingException {
+		RawText a;
+		RawText b;
+		Edit e;
+		a = new RawText("start".getBytes("UTF-8"));
+		b = new RawText("start of line".getBytes("UTF-8"));
+		e = new Edit(0, 1, 0, 1);
+		e = RawTextComparator.DEFAULT.reduceCommonStartEnd(a, b, e);
+		assertEquals(new Edit(0, 1, 0, 1), e);
+	}
+
+	@Test
+	public void testComparatorReduceCommonStartButLastLineNoEol_2()
+			throws UnsupportedEncodingException {
+		RawText a;
+		RawText b;
+		Edit e;
+		a = new RawText("start".getBytes("UTF-8"));
+		b = new RawText("start of\nlastline".getBytes("UTF-8"));
+		e = new Edit(0, 1, 0, 2);
+		e = RawTextComparator.DEFAULT.reduceCommonStartEnd(a, b, e);
+		assertEquals(new Edit(0, 1, 0, 2), e);
+	}
+
 	private static RawText t(String text) {
 		StringBuilder r = new StringBuilder();
 		for (int i = 0; i < text.length(); i++) {
diff --git a/org.eclipse.jgit/src/org/eclipse/jgit/diff/RawTextComparator.java b/org.eclipse.jgit/src/org/eclipse/jgit/diff/RawTextComparator.java
index 3576c5004..2793fa2e8 100644
--- a/org.eclipse.jgit/src/org/eclipse/jgit/diff/RawTextComparator.java
+++ b/org.eclipse.jgit/src/org/eclipse/jgit/diff/RawTextComparator.java
@@ -318,7 +318,7 @@ public abstract class RawTextComparator extends SequenceComparator<RawText> {
 
 	private static int findForwardLine(IntList lines, int idx, int ptr) {
 		final int end = lines.size() - 2;
-		while (idx < end && lines.get(idx + 2) <= ptr)
+		while (idx < end && lines.get(idx + 2) < ptr)
 			idx++;
 		return idx;
 	}