diff --git a/org.eclipse.jgit.test/tst/org/eclipse/jgit/merge/MergeAlgorithmTest.java b/org.eclipse.jgit.test/tst/org/eclipse/jgit/merge/MergeAlgorithmTest.java
index c92962950..9b4b7146f 100644
--- a/org.eclipse.jgit.test/tst/org/eclipse/jgit/merge/MergeAlgorithmTest.java
+++ b/org.eclipse.jgit.test/tst/org/eclipse/jgit/merge/MergeAlgorithmTest.java
@@ -107,7 +107,7 @@ public class MergeAlgorithmTest extends TestCase {
 	 * @throws IOException
 	 */
 	public void testTwoComplicatedModifications() throws IOException {
-		assertEquals(t("a<ZZZZfZh=bYdYYYY>ZY"),
+		assertEquals(t("a<ZZZZfZhZj=bYdYYYYiY>"),
 				merge("abcdefghij", "aZZZZfZhZj", "abYdYYYYiY"));
 	}
 
@@ -153,6 +153,18 @@ public class MergeAlgorithmTest extends TestCase {
 				merge("abcdefghij", "abdefghij", "abZdefghij"));
 	}
 
+	public void testInsertVsModify() throws IOException {
+		assertEquals(t("a<bZ=XY>"), merge("ab", "abZ", "aXY"));
+	}
+
+	public void testAdjacentModifications() throws IOException {
+		assertEquals(t("a<Zc=bY>d"), merge("abcd", "aZcd", "abYd"));
+	}
+
+	public void testSeperateModifications() throws IOException {
+		assertEquals(t("aZcYe"), merge("abcde", "aZcde", "abcYe"));
+	}
+
 	private String merge(String commonBase, String ours, String theirs) throws IOException {
 		MergeResult r = MergeAlgorithm.merge(RawTextComparator.DEFAULT,
 				T(commonBase), T(ours), T(theirs));
diff --git a/org.eclipse.jgit/src/org/eclipse/jgit/merge/MergeAlgorithm.java b/org.eclipse.jgit/src/org/eclipse/jgit/merge/MergeAlgorithm.java
index 868248713..aee0ba940 100644
--- a/org.eclipse.jgit/src/org/eclipse/jgit/merge/MergeAlgorithm.java
+++ b/org.eclipse.jgit/src/org/eclipse/jgit/merge/MergeAlgorithm.java
@@ -103,7 +103,7 @@ public final class MergeAlgorithm {
 		// leave the loop when there are no edits more for ours or for theirs
 		// (or both)
 		while (theirsEdit != END_EDIT || oursEdit != END_EDIT) {
-			if (oursEdit.getEndA() <= theirsEdit.getBeginA()) {
+			if (oursEdit.getEndA() < theirsEdit.getBeginA()) {
 				// something was changed in ours not overlapping with any change
 				// from theirs. First add the common part in front of the edit
 				// then the edit.
@@ -115,7 +115,7 @@ public final class MergeAlgorithm {
 						ConflictState.NO_CONFLICT);
 				current = oursEdit.getEndA();
 				oursEdit = nextEdit(baseToOurs);
-			} else if (theirsEdit.getEndA() <= oursEdit.getBeginA()) {
+			} else if (theirsEdit.getEndA() < oursEdit.getBeginA()) {
 				// something was changed in theirs not overlapping with any
 				// from ours. First add the common part in front of the edit
 				// then the edit.
@@ -179,10 +179,10 @@ public final class MergeAlgorithm {
 				Edit nextOursEdit = nextEdit(baseToOurs);
 				Edit nextTheirsEdit = nextEdit(baseToTheirs);
 				for (;;) {
-					if (oursEdit.getEndA() > nextTheirsEdit.getBeginA()) {
+					if (oursEdit.getEndA() >= nextTheirsEdit.getBeginA()) {
 						theirsEdit = nextTheirsEdit;
 						nextTheirsEdit = nextEdit(baseToTheirs);
-					} else if (theirsEdit.getEndA() > nextOursEdit.getBeginA()) {
+					} else if (theirsEdit.getEndA() >= nextOursEdit.getBeginA()) {
 						oursEdit = nextOursEdit;
 						nextOursEdit = nextEdit(baseToOurs);
 					} else {