diff --git a/pkg/commands/git_commands/commit.go b/pkg/commands/git_commands/commit.go
index 084a6c8d4c7..2e839bad074 100644
--- a/pkg/commands/git_commands/commit.go
+++ b/pkg/commands/git_commands/commit.go
@@ -270,6 +270,7 @@ func (self *CommitCommands) ShowCmdObj(hash string, filterPaths []string) *oscom
 		Arg("-p").
 		Arg(hash).
 		ArgIf(self.UserConfig().Git.IgnoreWhitespaceInDiffView, "--ignore-all-space").
+		ArgIf(self.UserConfig().Git.UseWordDiffInDiffView, "--word-diff").
 		Arg(fmt.Sprintf("--find-renames=%d%%", self.UserConfig().Git.RenameSimilarityThreshold)).
 		Arg("--").
 		Arg(filterPaths...).
diff --git a/pkg/commands/git_commands/commit_test.go b/pkg/commands/git_commands/commit_test.go
index 8460164ccde..309877f78de 100644
--- a/pkg/commands/git_commands/commit_test.go
+++ b/pkg/commands/git_commands/commit_test.go
@@ -491,3 +491,28 @@ func TestAddCoAuthorToDescription(t *testing.T) {
 		})
 	}
 }
+
+func TestWordDiffConfiguration(t *testing.T) {
+	userConfig := config.GetDefaultConfig()
+	userConfig.Git.UseWordDiffInDiffView = true
+
+	repoPaths := RepoPaths{
+		worktreePath: "/path/to/worktree",
+	}
+
+	runner := oscommands.NewFakeRunner(t).
+		ExpectGitArgs([]string{
+			"-C", "/path/to/worktree", "-c", "diff.noprefix=false", "show",
+			"--no-ext-diff", "--submodule", "--color=always", "--unified=3",
+			"--stat", "--decorate", "-p", "abc123", "--word-diff",
+			"--find-renames=50%", "--",
+		}, "", nil)
+
+	instance := buildCommitCommands(commonDeps{runner: runner, userConfig: userConfig, repoPaths: &repoPaths})
+
+	cmdObj := instance.ShowCmdObj("abc123", []string{})
+	err := cmdObj.Run()
+
+	assert.NoError(t, err)
+	runner.CheckForMissingCalls()
+}
diff --git a/pkg/commands/git_commands/diff.go b/pkg/commands/git_commands/diff.go
index 76b67788464..5fcafd8346c 100644
--- a/pkg/commands/git_commands/diff.go
+++ b/pkg/commands/git_commands/diff.go
@@ -23,6 +23,7 @@ func (self *DiffCommands) DiffCmdObj(diffArgs []string) *oscommands.CmdObj {
 	useExtDiff := extDiffCmd != ""
 	useExtDiffGitConfig := self.UserConfig().Git.Paging.UseExternalDiffGitConfig
 	ignoreWhitespace := self.UserConfig().Git.IgnoreWhitespaceInDiffView
+	useWordDiff := self.UserConfig().Git.UseWordDiffInDiffView
 
 	return self.cmd.New(
 		NewGitCmd("diff").
@@ -32,6 +33,7 @@ func (self *DiffCommands) DiffCmdObj(diffArgs []string) *oscommands.CmdObj {
 			Arg("--submodule").
 			Arg(fmt.Sprintf("--color=%s", self.UserConfig().Git.Paging.ColorArg)).
 			ArgIf(ignoreWhitespace, "--ignore-all-space").
+			ArgIf(useWordDiff, "--word-diff").
 			Arg(fmt.Sprintf("--unified=%d", self.UserConfig().Git.DiffContextSize)).
 			Arg(diffArgs...).
 			Dir(self.repoPaths.worktreePath).
diff --git a/pkg/commands/git_commands/patch.go b/pkg/commands/git_commands/patch.go
index 2a979dd54ef..9907d70887e 100644
--- a/pkg/commands/git_commands/patch.go
+++ b/pkg/commands/git_commands/patch.go
@@ -347,6 +347,7 @@ func (self *PatchCommands) diffHeadAgainstCommit(commit *models.Commit) (string,
 	cmdArgs := NewGitCmd("diff").
 		Config("diff.noprefix=false").
 		Arg("--no-ext-diff").
+		ArgIf(self.UserConfig().Git.UseWordDiffInDiffView, "--word-diff").
 		Arg("HEAD.." + commit.Hash()).
 		ToArgv()
 
diff --git a/pkg/commands/git_commands/stash.go b/pkg/commands/git_commands/stash.go
index f6b69ae7da6..96e95742280 100644
--- a/pkg/commands/git_commands/stash.go
+++ b/pkg/commands/git_commands/stash.go
@@ -94,6 +94,7 @@ func (self *StashCommands) ShowStashEntryCmdObj(index int) *oscommands.CmdObj {
 		Arg(fmt.Sprintf("--color=%s", self.UserConfig().Git.Paging.ColorArg)).
 		Arg(fmt.Sprintf("--unified=%d", self.UserConfig().Git.DiffContextSize)).
 		ArgIf(self.UserConfig().Git.IgnoreWhitespaceInDiffView, "--ignore-all-space").
+		ArgIf(self.UserConfig().Git.UseWordDiffInDiffView, "--word-diff").
 		Arg(fmt.Sprintf("--find-renames=%d%%", self.UserConfig().Git.RenameSimilarityThreshold)).
 		Arg(fmt.Sprintf("refs/stash@{%d}", index)).
 		Dir(self.repoPaths.worktreePath).
diff --git a/pkg/commands/git_commands/working_tree.go b/pkg/commands/git_commands/working_tree.go
index e6b066d346f..c9235ec783a 100644
--- a/pkg/commands/git_commands/working_tree.go
+++ b/pkg/commands/git_commands/working_tree.go
@@ -276,6 +276,7 @@ func (self *WorkingTreeCommands) WorktreeFileDiffCmdObj(node models.IFile, plain
 		Arg(fmt.Sprintf("--unified=%d", contextSize)).
 		Arg(fmt.Sprintf("--color=%s", colorArg)).
 		ArgIf(!plain && self.UserConfig().Git.IgnoreWhitespaceInDiffView, "--ignore-all-space").
+		ArgIf(!plain && self.UserConfig().Git.UseWordDiffInDiffView, "--word-diff").
 		Arg(fmt.Sprintf("--find-renames=%d%%", self.UserConfig().Git.RenameSimilarityThreshold)).
 		ArgIf(cached, "--cached").
 		ArgIf(noIndex, "--no-index").
@@ -319,6 +320,7 @@ func (self *WorkingTreeCommands) ShowFileDiffCmdObj(from string, to string, reve
 		Arg(to).
 		ArgIf(reverse, "-R").
 		ArgIf(!plain && self.UserConfig().Git.IgnoreWhitespaceInDiffView, "--ignore-all-space").
+		ArgIf(!plain && self.UserConfig().Git.UseWordDiffInDiffView, "--word-diff").
 		Arg("--").
 		Arg(fileName).
 		Dir(self.repoPaths.worktreePath).
diff --git a/pkg/config/user_config.go b/pkg/config/user_config.go
index c30d030aeaf..006b8d5da7e 100644
--- a/pkg/config/user_config.go
+++ b/pkg/config/user_config.go
@@ -266,6 +266,8 @@ type GitConfig struct {
 	AllBranchesLogCmds []string `yaml:"allBranchesLogCmds"`
 	// If true, git diffs are rendered with the `--ignore-all-space` flag, which ignores whitespace changes. Can be toggled from within Lazygit with `<c-w>`.
 	IgnoreWhitespaceInDiffView bool `yaml:"ignoreWhitespaceInDiffView"`
+	// If true, git diffs use word-diff mode. Can be toggled from within Lazygit with `<c-shift-w>`.
+	UseWordDiffInDiffView bool `yaml:"useWordDiffInDiffView"`
 	// The number of lines of context to show around each diff hunk. Can be changed from within Lazygit with the `{` and `}` keys.
 	DiffContextSize uint64 `yaml:"diffContextSize"`
 	// The threshold for considering a file to be renamed, in percent. Can be changed from within Lazygit with the `(` and `)` keys.
@@ -828,6 +830,7 @@ func GetDefaultConfig() *UserConfig {
 			BranchLogCmd:                 "git log --graph --color=always --abbrev-commit --decorate --date=relative --pretty=medium {{branchName}} --",
 			AllBranchesLogCmds:           []string{"git log --graph --all --color=always --abbrev-commit --decorate --date=relative  --pretty=medium"},
 			IgnoreWhitespaceInDiffView:   false,
+			UseWordDiffInDiffView:       false,
 			DiffContextSize:              3,
 			RenameSimilarityThreshold:    50,
 			DisableForcePushing:          false,
diff --git a/pkg/gui/controllers/diffing_menu_action.go b/pkg/gui/controllers/diffing_menu_action.go
index a53ad65e5d1..6f1fcbbaed2 100644
--- a/pkg/gui/controllers/diffing_menu_action.go
+++ b/pkg/gui/controllers/diffing_menu_action.go
@@ -49,6 +49,17 @@ func (self *DiffingMenuAction) Call() error {
 		},
 	}...)
 
+	menuItems = append(menuItems, []*types.MenuItem{
+		{
+			Label: self.c.Tr.ToggleWordDiffInDiffView,
+			OnPress: func() error {
+				self.c.UserConfig().Git.UseWordDiffInDiffView = !self.c.UserConfig().Git.UseWordDiffInDiffView
+				self.c.Refresh(types.RefreshOptions{Mode: types.ASYNC})
+				return nil
+			},
+		},
+	}...)
+
 	if self.c.Modes().Diffing.Active() {
 		menuItems = append(menuItems, []*types.MenuItem{
 			{
diff --git a/pkg/gui/controllers/global_controller.go b/pkg/gui/controllers/global_controller.go
index 734e6551608..fac52e1d73b 100644
--- a/pkg/gui/controllers/global_controller.go
+++ b/pkg/gui/controllers/global_controller.go
@@ -224,6 +224,10 @@ func (self *GlobalController) toggleWhitespace() error {
 	return (&ToggleWhitespaceAction{c: self.c}).Call()
 }
 
+func (self *GlobalController) toggleWordDiff() error {
+	return (&ToggleWordDiffAction{c: self.c}).Call()
+}
+
 func (self *GlobalController) canShowRebaseOptions() *types.DisabledReason {
 	if self.c.Model().WorkingTreeStateAtLastCommitRefresh.None() {
 		return &types.DisabledReason{
diff --git a/pkg/gui/controllers/toggle_word_diff_action.go b/pkg/gui/controllers/toggle_word_diff_action.go
new file mode 100644
index 00000000000..1cc7275cc89
--- /dev/null
+++ b/pkg/gui/controllers/toggle_word_diff_action.go
@@ -0,0 +1,14 @@
+package controllers
+
+import "github.com/jesseduffield/lazygit/pkg/gui/types"
+
+type ToggleWordDiffAction struct {
+	c *ControllerCommon
+}
+
+func (self *ToggleWordDiffAction) Call() error {
+	self.c.UserConfig().Git.UseWordDiffInDiffView = !self.c.UserConfig().Git.UseWordDiffInDiffView
+
+	self.c.Context().CurrentSide().HandleFocus(types.OnFocusOpts{})
+	return nil
+}
diff --git a/pkg/i18n/english.go b/pkg/i18n/english.go
index d162d20dc20..67bba1554ef 100644
--- a/pkg/i18n/english.go
+++ b/pkg/i18n/english.go
@@ -737,6 +737,7 @@ type TranslationSet struct {
 	CommandLogHeader                         string
 	RandomTip                                string
 	ToggleWhitespaceInDiffView               string
+	ToggleWordDiffInDiffView                 string
 	ToggleWhitespaceInDiffViewTooltip        string
 	IgnoreWhitespaceDiffViewSubTitle         string
 	IgnoreWhitespaceNotSupportedHere         string
@@ -1819,6 +1820,7 @@ func EnglishTranslationSet() *TranslationSet {
 		CommandLogHeader:                         "You can hide/focus this panel by pressing '%s'\n",
 		RandomTip:                                "Random tip",
 		ToggleWhitespaceInDiffView:               "Toggle whitespace",
+		ToggleWordDiffInDiffView:                 "Toggle word diff",
 		ToggleWhitespaceInDiffViewTooltip:        "Toggle whether or not whitespace changes are shown in the diff view.\n\nThe default can be changed in the config file with the key 'git.ignoreWhitespaceInDiffView'.",
 		IgnoreWhitespaceDiffViewSubTitle:         "(ignoring whitespace)",
 		IgnoreWhitespaceNotSupportedHere:         "Ignoring whitespace is not supported in this view",