diff --git a/src/terminal/git_diff.rs b/src/terminal/git_diff.rs
new file mode 100644
index 00000000..b11c9802
--- /dev/null
+++ b/src/terminal/git_diff.rs
@@ -0,0 +1,516 @@
+//! The full working-tree diff behind the sidebar's `+N −N` counts: `git diff
+//! HEAD` parsed into files → hunks → lines, for the read-only diff overlay
+//! (see [`crate::ui::diff_overlay`]) that covers the terminal when the user
+//! clicks a tab row's git line.
+//!
+//! Same discipline as [`git_status`](crate::terminal::git_status): plain
+//! shell-outs run on a background executor by the caller, read-only via
+//! `GIT_OPTIONAL_LOCKS=0` (through the shared [`git_status::git`] helper), and
+//! never trusted to be fast — the UI shows the previous snapshot (or a loading
+//! state) until a probe lands.
+
+use std::path::{Path, PathBuf};
+
+use crate::terminal::git_status;
+
+/// Cap on parsed diff lines per file. A generated lockfile or vendored blob
+/// can be tens of thousands of lines; past this the file's hunks stop and the
+/// overlay shows a "truncated" notice instead of building a giant element
+/// tree. Generous enough that real hand-written changes never hit it.
+pub const MAX_LINES_PER_FILE: usize = 2000;
+
+/// A file's added+removed size at which the overlay collapses it by default
+/// (GitHub's "Load diff" treatment) — the user can still expand it by click.
+pub const AUTO_COLLAPSE_LINES: u32 = 400;
+
+/// One parsed `git diff HEAD` for a repo, plus the untracked files `diff`
+/// itself can't see. This is the overlay's whole model.
+#[derive(Clone, PartialEq, Eq, Debug, Default)]
+pub struct DiffSnapshot {
+    /// The work-tree root the diff was taken in.
+    pub root: PathBuf,
+    /// Branch name (or short sha when detached) — the overlay's title.
+    pub branch: String,
+    /// Changed tracked files, in `git diff` order.
+    pub files: Vec<FileDiff>,
+    /// Untracked (new, un-added) paths, repo-relative. Listed by name only:
+    /// `git diff HEAD` has no blob to diff them against, and agents create
+    /// files constantly — hiding them would make the overlay look like it
+    /// lost work.
+    pub untracked: Vec<String>,
+}
+
+impl DiffSnapshot {
+    /// Total added/removed line counts across all files — the overlay's
+    /// header numbers, matching the sidebar's `+N −N` by construction (both
+    /// sum per-file counts of the same `HEAD` diff).
+    pub fn totals(&self) -> (u32, u32) {
+        self.files
+            .iter()
+            .fold((0, 0), |(a, r), f| (a + f.added, r + f.removed))
+    }
+}
+
+/// How a file changed vs `HEAD` — drives the status glyph in its header row.
+#[derive(Clone, Copy, PartialEq, Eq, Debug)]
+pub enum FileStatus {
+    Added,
+    Modified,
+    Deleted,
+    Renamed,
+}
+
+/// One changed file: its header-row facts plus the parsed hunks.
+#[derive(Clone, PartialEq, Eq, Debug)]
+pub struct FileDiff {
+    /// New path (repo-relative); for a deletion, the old path.
+    pub path: String,
+    /// The pre-rename path, only when `status == Renamed`.
+    pub old_path: Option<String>,
+    pub status: FileStatus,
+    /// Lines added / removed in this file (counted from the parsed hunks).
+    pub added: u32,
+    pub removed: u32,
+    /// Binary file — no hunks, the header row says "binary" instead.
+    pub binary: bool,
+    /// Hunk parsing stopped at [`MAX_LINES_PER_FILE`]; the overlay appends a
+    /// "truncated" footer under the last hunk.
+    pub truncated: bool,
+    pub hunks: Vec<Hunk>,
+}
+
+/// One `@@` hunk: its header line (kept verbatim, function context and all)
+/// and the diff lines under it.
+#[derive(Clone, PartialEq, Eq, Debug)]
+pub struct Hunk {
+    /// The full `@@ -a,b +c,d @@ …` line as git printed it.
+    pub header: String,
+    pub lines: Vec<DiffLine>,
+}
+
+#[derive(Clone, Copy, PartialEq, Eq, Debug)]
+pub enum LineKind {
+    Context,
+    Added,
+    Removed,
+}
+
+/// One diff line with the gutter numbers it carries: an added line has only a
+/// new number, a removed line only an old one, context both.
+#[derive(Clone, PartialEq, Eq, Debug)]
+pub struct DiffLine {
+    pub kind: LineKind,
+    pub old_no: Option<u32>,
+    pub new_no: Option<u32>,
+    /// The line's text, without the leading `+`/`-`/space marker.
+    pub text: String,
+}
+
+/// Probe the full diff snapshot for `cwd`, or `None` when it isn't inside a
+/// git work tree. Blocking (three `git` shell-outs) — call it on a background
+/// executor.
+pub fn probe(cwd: &Path) -> Option<DiffSnapshot> {
+    if !cwd.exists() {
+        return None;
+    }
+    // Doubles as the "is this a repo" gate, same as the status probe.
+    let root = git_status::git(cwd, &["rev-parse", "--show-toplevel"])?;
+    let root = PathBuf::from(root.trim_end_matches(['\n', '\r']));
+    let branch = git_status::branch_name(cwd)?;
+    // `-M` folds a delete+add pair back into one rename entry; `--no-ext-diff`
+    // keeps a configured external diff tool from replacing the parseable
+    // unified format. A failed diff (e.g. racing a concurrent git write) still
+    // yields a snapshot — an empty file list with the branch — rather than
+    // hiding the overlay; the next refresh fills it in.
+    let files = git_status::git(cwd, &["diff", "--no-color", "--no-ext-diff", "-M", "HEAD"])
+        .map(|out| parse_unified(&out))
+        .unwrap_or_default();
+    // `--full-name` pins paths to the repo root regardless of which
+    // subdirectory the pane sits in, matching the diff's path space.
+    let untracked = git_status::git(
+        cwd,
+        &["ls-files", "--others", "--exclude-standard", "--full-name"],
+    )
+    .map(|out| out.lines().map(str::to_string).collect())
+    .unwrap_or_default();
+    Some(DiffSnapshot {
+        root,
+        branch,
+        files,
+        untracked,
+    })
+}
+
+/// Parse `git diff` unified output into per-file structures. Tolerant by
+/// construction: unrecognized metadata lines between the `diff --git` header
+/// and the first hunk (modes, index, similarity) are simply skipped, so a git
+/// version printing extra headers degrades to "fewer facts", never a panic.
+pub fn parse_unified(out: &str) -> Vec<FileDiff> {
+    let mut files: Vec<FileDiff> = Vec::new();
+    // Line-number counters for the hunk currently being filled.
+    let (mut old_no, mut new_no) = (0u32, 0u32);
+    // Lines consumed by the current file's hunks, for the per-file cap.
+    let mut file_lines = 0usize;
+
+    for line in out.lines() {
+        if let Some(rest) = line.strip_prefix("diff --git ") {
+            let (old_p, new_p) = parse_git_header_paths(rest);
+            files.push(FileDiff {
+                path: new_p.clone(),
+                old_path: (old_p != new_p).then_some(old_p),
+                status: FileStatus::Modified,
+                added: 0,
+                removed: 0,
+                binary: false,
+                truncated: false,
+                hunks: Vec::new(),
+            });
+            file_lines = 0;
+            continue;
+        }
+        let Some(file) = files.last_mut() else {
+            continue; // preamble before any header (shouldn't happen)
+        };
+        // ── File-level metadata between the header and the first hunk ──────
+        if line.starts_with("new file mode") {
+            file.status = FileStatus::Added;
+            continue;
+        }
+        if line.starts_with("deleted file mode") {
+            file.status = FileStatus::Deleted;
+            continue;
+        }
+        if line.starts_with("rename from ") {
+            file.status = FileStatus::Renamed;
+            continue;
+        }
+        if line.starts_with("Binary files ") || line.starts_with("GIT binary patch") {
+            file.binary = true;
+            continue;
+        }
+        // `--- a/x` / `+++ b/x` repeat what the header said; `rename to`,
+        // `index`, modes and similarity scores add nothing we render. But only
+        // skip them *outside* hunk bodies — a removed line legitimately starts
+        // with `--- ` inside one.
+        if file.hunks.is_empty()
+            && (line.starts_with("--- ") || line.starts_with("+++ ") || !is_hunk_line(line))
+            && !line.starts_with("@@")
+        {
+            continue;
+        }
+        // ── Hunks ───────────────────────────────────────────────────────────
+        if line.starts_with("@@") {
+            if file.truncated {
+                continue; // past the cap: swallow the rest of this file
+            }
+            let (o, n) = parse_hunk_starts(line).unwrap_or((0, 0));
+            old_no = o;
+            new_no = n;
+            file.hunks.push(Hunk {
+                header: line.to_string(),
+                lines: Vec::new(),
+            });
+            continue;
+        }
+        if file.hunks.is_empty() {
+            continue; // stray content outside any hunk
+        }
+        let (kind, text) = match line.as_bytes().first() {
+            Some(b'+') => (LineKind::Added, &line[1..]),
+            Some(b'-') => (LineKind::Removed, &line[1..]),
+            Some(b' ') => (LineKind::Context, &line[1..]),
+            // `\ No newline at end of file` and anything else: not a diff line.
+            _ => continue,
+        };
+        // Count added/removed *before* the truncation gate: the cap is about
+        // element volume, but the header numbers must stay honest, so lines
+        // past the cap still count even though they're never kept.
+        match kind {
+            LineKind::Added => file.added += 1,
+            LineKind::Removed => file.removed += 1,
+            LineKind::Context => {}
+        }
+        if file.truncated {
+            continue;
+        }
+        file_lines += 1;
+        if file_lines > MAX_LINES_PER_FILE {
+            file.truncated = true;
+            continue;
+        }
+        let Some(hunk) = file.hunks.last_mut() else {
+            continue;
+        };
+        let (o, n) = match kind {
+            LineKind::Added => {
+                let n = new_no;
+                new_no += 1;
+                (None, Some(n))
+            }
+            LineKind::Removed => {
+                let o = old_no;
+                old_no += 1;
+                (Some(o), None)
+            }
+            LineKind::Context => {
+                let (o, n) = (old_no, new_no);
+                old_no += 1;
+                new_no += 1;
+                (Some(o), Some(n))
+            }
+        };
+        hunk.lines.push(DiffLine {
+            kind,
+            old_no: o,
+            new_no: n,
+            text: text.to_string(),
+        });
+    }
+    // A truncated file still counts +/− for its whole diff (the loop above
+    // keeps counting past the cap), so totals stay consistent with numstat.
+    files
+}
+
+/// Whether a line can only belong to a hunk body (`+`/`-`/space/`\` lead).
+fn is_hunk_line(line: &str) -> bool {
+    matches!(line.as_bytes().first(), Some(b'+' | b'-' | b' ' | b'\\')) || line.is_empty()
+}
+
+/// Split the `a/old b/new` tail of a `diff --git` header into the two paths.
+///
+/// Plain names split on the ` b/` separator; paths with spaces work because
+/// git quotes *those* (`"a/x y" "b/x y"`), handled by the quoted branch. A
+/// path containing a literal ` b/` unquoted is ambiguous in git's own format —
+/// we take the last occurrence, matching git's convention of the `b/` side
+/// naming the current file.
+fn parse_git_header_paths(rest: &str) -> (String, String) {
+    // Quoted form: "a/path with spaces" "b/path with spaces".
+    if rest.starts_with('"') {
+        let parts: Vec<String> = parse_quoted_pair(rest);
+        if parts.len() == 2 {
+            return (strip_prefix_ab(&parts[0]), strip_prefix_ab(&parts[1]));
+        }
+    }
+    if let Some(idx) = rest.rfind(" b/") {
+        let old = &rest[..idx];
+        let new = &rest[idx + 1..];
+        return (strip_prefix_ab(old), strip_prefix_ab(new));
+    }
+    // Unsplittable — show the whole tail rather than nothing.
+    (rest.to_string(), rest.to_string())
+}
+
+/// Parse up to two double-quoted strings (git's C-style quoting, minus octal
+/// escapes — good enough for spaces, the common case).
+fn parse_quoted_pair(s: &str) -> Vec<String> {
+    let mut parts = Vec::new();
+    let mut cur = String::new();
+    let mut in_quote = false;
+    let mut escaped = false;
+    for ch in s.chars() {
+        if escaped {
+            cur.push(ch);
+            escaped = false;
+            continue;
+        }
+        match ch {
+            '\\' if in_quote => escaped = true,
+            '"' => {
+                if in_quote {
+                    parts.push(std::mem::take(&mut cur));
+                }
+                in_quote = !in_quote;
+            }
+            _ if in_quote => cur.push(ch),
+            _ => {}
+        }
+    }
+    parts
+}
+
+/// Drop the `a/` / `b/` prefix git puts on header paths.
+fn strip_prefix_ab(p: &str) -> String {
+    p.strip_prefix("a/")
+        .or_else(|| p.strip_prefix("b/"))
+        .unwrap_or(p)
+        .to_string()
+}
+
+/// The old/new start line numbers from a `@@ -a,b +c,d @@` header.
+fn parse_hunk_starts(line: &str) -> Option<(u32, u32)> {
+    let rest = line.strip_prefix("@@ -")?;
+    let (old_part, rest) = rest.split_once(" +")?;
+    let (new_part, _) = rest.split_once(" @@")?;
+    let old = old_part.split(',').next()?.parse().ok()?;
+    let new = new_part.split(',').next()?.parse().ok()?;
+    Some((old, new))
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    const SAMPLE: &str = "\
+diff --git a/src/main.rs b/src/main.rs
+index 1111111..2222222 100644
+--- a/src/main.rs
++++ b/src/main.rs
+@@ -10,4 +10,5 @@ fn main() {
+ let a = 1;
+-let b = old();
++let b = new();
++let c = 3;
+ done();
+diff --git a/docs/new.md b/docs/new.md
+new file mode 100644
+index 0000000..3333333
+--- /dev/null
++++ b/docs/new.md
+@@ -0,0 +1,2 @@
++hello
++world
+diff --git a/gone.txt b/gone.txt
+deleted file mode 100644
+index 4444444..0000000
+--- a/gone.txt
++++ /dev/null
+@@ -1,1 +0,0 @@
+-bye
+diff --git a/img.png b/img.png
+index 5555555..6666666 100644
+Binary files a/img.png and b/img.png differ
+";
+
+    /// The sample covers modify / add / delete / binary; statuses, counts, and
+    /// hunk line numbers all land where the unified format says they should.
+    #[test]
+    fn parses_the_four_file_shapes() {
+        let files = parse_unified(SAMPLE);
+        assert_eq!(files.len(), 4);
+
+        let m = &files[0];
+        assert_eq!(m.path, "src/main.rs");
+        assert_eq!(m.status, FileStatus::Modified);
+        assert_eq!((m.added, m.removed), (2, 1));
+        assert_eq!(m.hunks.len(), 1);
+        assert_eq!(m.hunks[0].header, "@@ -10,4 +10,5 @@ fn main() {");
+        let lines = &m.hunks[0].lines;
+        assert_eq!(lines.len(), 5);
+        // Context line carries both numbers, tracking the hunk starts.
+        assert_eq!((lines[0].old_no, lines[0].new_no), (Some(10), Some(10)));
+        assert_eq!(lines[1].kind, LineKind::Removed);
+        assert_eq!(lines[1].old_no, Some(11));
+        assert_eq!(lines[1].new_no, None);
+        assert_eq!(lines[2].kind, LineKind::Added);
+        assert_eq!(lines[2].new_no, Some(11));
+        assert_eq!(lines[3].new_no, Some(12));
+        assert_eq!(lines[3].text, "let c = 3;");
+        // Trailing context resumes both counters.
+        assert_eq!((lines[4].old_no, lines[4].new_no), (Some(12), Some(13)));
+
+        let a = &files[1];
+        assert_eq!(a.status, FileStatus::Added);
+        assert_eq!((a.added, a.removed), (2, 0));
+
+        let d = &files[2];
+        assert_eq!(d.status, FileStatus::Deleted);
+        assert_eq!((d.added, d.removed), (0, 1));
+
+        let b = &files[3];
+        assert!(b.binary);
+        assert!(b.hunks.is_empty());
+    }
+
+    /// Renames keep both paths and don't show phantom +/− lines.
+    #[test]
+    fn parses_renames() {
+        let out = "\
+diff --git a/old/name.rs b/new/name.rs
+similarity index 100%
+rename from old/name.rs
+rename to new/name.rs
+";
+        let files = parse_unified(out);
+        assert_eq!(files.len(), 1);
+        assert_eq!(files[0].status, FileStatus::Renamed);
+        assert_eq!(files[0].path, "new/name.rs");
+        assert_eq!(files[0].old_path.as_deref(), Some("old/name.rs"));
+        assert_eq!((files[0].added, files[0].removed), (0, 0));
+    }
+
+    /// Quoted headers (paths with spaces) resolve to the unquoted paths.
+    #[test]
+    fn parses_quoted_paths() {
+        let out = "diff --git \"a/has space.txt\" \"b/has space.txt\"\n";
+        let files = parse_unified(out);
+        assert_eq!(files[0].path, "has space.txt");
+        assert_eq!(files[0].old_path, None);
+    }
+
+    /// A `--- ` *content* line inside a hunk is a removed line, not metadata.
+    #[test]
+    fn triple_dash_content_line_is_kept() {
+        let out = "\
+diff --git a/x.md b/x.md
+index 1111111..2222222 100644
+--- a/x.md
++++ b/x.md
+@@ -1,2 +1,1 @@
+ keep
+---- a heading rule
+";
+        let files = parse_unified(out);
+        let lines = &files[0].hunks[0].lines;
+        assert_eq!(lines.len(), 2);
+        assert_eq!(lines[1].kind, LineKind::Removed);
+        // Raw `---- a heading rule` = marker `-` + content `--- a heading rule`:
+        // content that *itself* starts with `--- ` must not be eaten as metadata.
+        assert_eq!(lines[1].text, "--- a heading rule");
+    }
+
+    /// Past the per-file cap the hunks stop growing and the file is flagged,
+    /// but the +/− counts keep counting so the header stays honest.
+    #[test]
+    fn caps_lines_per_file_but_keeps_counting() {
+        let mut out = String::from(
+            "diff --git a/big.txt b/big.txt\nindex 1..2 100644\n--- a/big.txt\n+++ b/big.txt\n@@ -0,0 +1,3000 @@\n",
+        );
+        for i in 0..3000 {
+            out.push_str(&format!("+line {i}\n"));
+        }
+        let files = parse_unified(&out);
+        assert!(files[0].truncated);
+        assert_eq!(files[0].added, 3000);
+        let kept: usize = files[0].hunks.iter().map(|h| h.lines.len()).sum();
+        assert_eq!(kept, MAX_LINES_PER_FILE);
+    }
+
+    /// `\ No newline at end of file` markers are skipped, not rendered.
+    #[test]
+    fn skips_no_newline_marker() {
+        let out = "\
+diff --git a/x b/x
+index 1..2 100644
+--- a/x
++++ b/x
+@@ -1,1 +1,1 @@
+-old
+\\ No newline at end of file
++new
+\\ No newline at end of file
+";
+        let files = parse_unified(out);
+        assert_eq!(files[0].hunks[0].lines.len(), 2);
+        assert_eq!((files[0].added, files[0].removed), (1, 1));
+    }
+
+    /// Totals sum per-file counts.
+    #[test]
+    fn snapshot_totals() {
+        let snap = DiffSnapshot {
+            files: parse_unified(SAMPLE),
+            ..Default::default()
+        };
+        assert_eq!(snap.totals(), (4, 2));
+    }
+}
diff --git a/src/terminal/git_status.rs b/src/terminal/git_status.rs
index f10fdfed..dc28d5b7 100644
--- a/src/terminal/git_status.rs
+++ b/src/terminal/git_status.rs
@@ -149,8 +149,10 @@ impl GitStatusCache {
     }
 }
 
-/// The current branch name, or a short sha for a detached HEAD.
-fn branch_name(cwd: &Path) -> Option<String> {
+/// The current branch name, or a short sha for a detached HEAD. Shared with
+/// [`git_diff`](crate::terminal::git_diff), which fronts its overlay with the
+/// same branch label the sidebar row shows.
+pub(crate) fn branch_name(cwd: &Path) -> Option<String> {
     // On a branch — even before the first commit — `symbolic-ref` names it.
     if let Some(out) = git(cwd, &["symbolic-ref", "--quiet", "--short", "HEAD"]) {
         let name = out.trim();
@@ -186,8 +188,9 @@ fn diff_numstat(cwd: &Path) -> Option<(u32, u32)> {
 /// Run `git -C <cwd> <args>` and return stdout on success, `None` on a
 /// non-zero exit or a missing `git`. `GIT_OPTIONAL_LOCKS=0` makes the read
 /// truly read-only; stdin is nulled so a misconfigured git can't block on a
-/// prompt.
-fn git(cwd: &Path, args: &[&str]) -> Option<String> {
+/// prompt. Shared with [`git_diff`](crate::terminal::git_diff) so every git
+/// read in the app goes through the same lock-free, prompt-proof invocation.
+pub(crate) fn git(cwd: &Path, args: &[&str]) -> Option<String> {
     let out = Command::new("git")
         .arg("-C")
         .arg(cwd)
diff --git a/src/terminal/mod.rs b/src/terminal/mod.rs
index 3b64a032..34f06527 100644
--- a/src/terminal/mod.rs
+++ b/src/terminal/mod.rs
@@ -21,6 +21,7 @@ pub mod element;
 pub mod fps;
 mod fuzzy;
 mod generator;
+pub(crate) mod git_diff;
 pub(crate) mod git_status;
 mod highlight;
 mod history;
diff --git a/src/terminal/view.rs b/src/terminal/view.rs
index 7632b14f..28a7a63a 100644
--- a/src/terminal/view.rs
+++ b/src/terminal/view.rs
@@ -1038,6 +1038,16 @@ impl TerminalView {
             .status_for(cwd)
     }
 
+    /// The cwd the pane's git line reads from — the same path [`git_status`]
+    /// resolves through, so the diff overlay opened from that line probes the
+    /// identical repo (not a fresh foreground-cwd syscall that could disagree
+    /// mid-command). `None` outside a repo-probe-worthy state.
+    ///
+    /// [`git_status`]: Self::git_status
+    pub fn git_status_cwd(&self) -> Option<&std::path::Path> {
+        self.git_status_cwd.as_deref()
+    }
+
     /// The current grid selection as text, if any non-blank one exists — the
     /// source for "Agent: Send Selection".
     pub fn selection_text(&self) -> Option<String> {
diff --git a/src/ui/app.rs b/src/ui/app.rs
index 1301153b..9e686d93 100644
--- a/src/ui/app.rs
+++ b/src/ui/app.rs
@@ -328,6 +328,11 @@ pub struct Tty7App {
     /// (not a tab), so it covers the tab rail / title bar and never clutters the
     /// tab list. Holds all the settings widget state + its subscriptions.
     settings: Option<SettingsState>,
+    /// `Some` while the working-tree diff overlay is open (clicked from a
+    /// sidebar row's git line). Covers the terminal body only — the sidebar
+    /// stays visible so other repos' git lines remain one click away. See
+    /// [`crate::ui::diff_overlay`].
+    pub(crate) diff_overlay: Option<crate::ui::diff_overlay::DiffOverlayState>,
     /// In-pane native-SSH auth / host-key sheet state (WS3). Holds the active
     /// prompt (keyed to the pane that raised it), its input widgets, and
     /// dismissable banners. Empty when no prompt is pending.
@@ -449,10 +454,15 @@ impl Tty7App {
         let config_watch = cx.observe_global::<Config>(|this, cx| this.reload_from_config(cx));
         // Repaint when any pane's git probe lands in the shared cache — the
         // sidebar's branch/diff lines read from it, and the probing pane's own
-        // notify wouldn't re-render rows belonging to *other* panes.
+        // notify wouldn't re-render rows belonging to *other* panes. The open
+        // diff overlay rides the same signal: if the landed numbers disagree
+        // with what it shows, it re-probes the full diff.
         cx.default_global::<crate::terminal::git_status::GitStatusCache>();
         let git_status_watch =
-            cx.observe_global::<crate::terminal::git_status::GitStatusCache>(|_, cx| cx.notify());
+            cx.observe_global::<crate::terminal::git_status::GitStatusCache>(|this, cx| {
+                this.maybe_refresh_diff_overlay(cx);
+                cx.notify();
+            });
         // Any real keypress means "chord, not a bare hold": cancel the held-⌘
         // tab badges and whatever reveal is pending (see `ui::hints`).
         let this = cx.weak_entity();
@@ -543,6 +553,7 @@ impl Tty7App {
             sidebar_search,
             _sidebar_search_sub: sidebar_search_sub,
             settings: None,
+            diff_overlay: None,
             ssh_prompt: crate::ui::ssh_prompt::SshPromptState::new(cx),
             ssh_close_confirm: None,
             window_bounds: window.window_bounds().get_bounds(),
@@ -1484,7 +1495,7 @@ impl Tty7App {
     /// tab's `last_focused`, so `focus_active` can restore it when we come back.
     /// Call this before any transition that moves focus off the active tab
     /// (switching tabs, opening a focus-stealing overlay).
-    fn remember_active_pane(&mut self, window: &Window, cx: &App) {
+    pub(crate) fn remember_active_pane(&mut self, window: &Window, cx: &App) {
         let active = self.active;
         if let Some(tab) = self.tabs.get_mut(active) {
             if let Some(leaf) = tab.pane.focused_leaf(window, cx) {
@@ -3437,7 +3448,11 @@ impl Render for Tty7App {
             // Live-SSH close-confirmation sheet (E3).
             .when_some(self.render_ssh_close_confirm_overlay(cx), |this, el| {
                 this.child(el)
-            });
+            })
+            // Working-tree diff overlay (clicked from a sidebar git line) —
+            // last child, so it paints over every pane-contextual element
+            // above. It covers only the body: the sidebar stays interactive.
+            .when_some(self.render_diff_overlay(cx), |this, el| this.child(el));
 
         // The two layouts. Horizontal (default): a column of [title bar / body].
         // Vertical: the rail is a full-height *left column* that reaches the very
diff --git a/src/ui/diff_overlay.rs b/src/ui/diff_overlay.rs
new file mode 100644
index 00000000..7ca919c5
--- /dev/null
+++ b/src/ui/diff_overlay.rs
@@ -0,0 +1,560 @@
+//! The working-tree diff overlay: a read-only, GitHub-style unified diff that
+//! covers the terminal area when the user clicks a sidebar row's git line
+//! (`⎇ branch +N −N`). One scrolling column — per-file cards with collapsible
+//! hunk bodies, plus an untracked-files section `git diff` itself can't show.
+//!
+//! Deliberately a *lens*, not a git client: no staging, no discard, no
+//! side-by-side. The terminal keeps running underneath (the overlay covers
+//! only the body area, never the sidebar, so other tabs' git lines stay
+//! clickable to switch which repo is shown). Esc, the ✕, or re-clicking the
+//! same git line closes it.
+//!
+//! Data comes from [`crate::terminal::git_diff`], probed off-thread on open
+//! and re-probed automatically while open whenever the shared
+//! [`GitStatusCache`](crate::terminal::git_status::GitStatusCache) lands a
+//! snapshot whose branch or counts disagree with what's shown — so a finishing
+//! command or agent turn refreshes the overlay through the exact trigger
+//! machinery the sidebar numbers already use.
+
+use std::collections::HashSet;
+use std::path::PathBuf;
+
+use gpui::{
+    AnyElement, FocusHandle, FontWeight, KeyDownEvent, Window, div, prelude::*, px,
+};
+use gpui_component::button::{Button, ButtonVariants as _};
+use gpui_component::{ActiveTheme as _, Icon, IconName, Sizable as _, h_flex, v_flex};
+
+use crate::terminal::git_diff::{
+    self, AUTO_COLLAPSE_LINES, DiffSnapshot, FileDiff, FileStatus, LineKind,
+};
+use crate::ui::app::Tty7App;
+
+/// What the overlay currently shows: probing, a parsed snapshot, or the
+/// answer that the cwd stopped being a repo.
+pub(crate) enum DiffLoad {
+    /// First probe still in flight.
+    Loading,
+    Ready(DiffSnapshot),
+    /// The probe came back "not a work tree" (repo deleted, dir gone).
+    NotARepo,
+}
+
+/// State of the open diff overlay (`None` on [`Tty7App`] when closed).
+pub(crate) struct DiffOverlayState {
+    /// The pane cwd the diff is probed from — the same path the clicked git
+    /// line resolved its status through, so overlay and sidebar agree on the
+    /// repo. Also the toggle key: re-clicking a line with this cwd closes.
+    pub(crate) cwd: PathBuf,
+    /// Focus target so Esc lands on the overlay's key handler.
+    pub(crate) focus_handle: FocusHandle,
+    pub(crate) load: DiffLoad,
+    /// A probe is currently in flight (initial or refresh).
+    pub(crate) loading: bool,
+    /// Files the user flipped away from their default collapse state (small
+    /// files default open, big/binary ones closed). Keyed by path so the set
+    /// survives a background refresh of the snapshot.
+    pub(crate) toggled: HashSet<String>,
+}
+
+impl Tty7App {
+    /// Open the diff overlay for `cwd` — or close it when it's already open
+    /// for that same cwd (the git line acts as a toggle). Opening for a
+    /// different cwd swaps the overlay's repo in place.
+    pub(crate) fn toggle_diff_overlay(
+        &mut self,
+        cwd: PathBuf,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) {
+        if self.diff_overlay.as_ref().is_some_and(|o| o.cwd == cwd) {
+            self.close_diff_overlay(window, cx);
+            return;
+        }
+        // The overlay steals focus (it needs Esc); snapshot the active pane so
+        // closing lands back on the same terminal — same discipline as Settings.
+        self.remember_active_pane(window, cx);
+        let focus_handle = cx.focus_handle();
+        self.diff_overlay = Some(DiffOverlayState {
+            cwd,
+            focus_handle: focus_handle.clone(),
+            load: DiffLoad::Loading,
+            loading: false,
+            toggled: HashSet::new(),
+        });
+        window.focus(&focus_handle, cx);
+        self.spawn_diff_probe(cx);
+        cx.notify();
+    }
+
+    /// Close the overlay (Esc, ✕, or the toggle) and give focus back to the
+    /// active terminal.
+    pub(crate) fn close_diff_overlay(&mut self, window: &mut Window, cx: &mut Context<Self>) {
+        if self.diff_overlay.take().is_some() {
+            self.focus_active(window, cx);
+            cx.notify();
+        }
+    }
+
+    /// Kick off an off-thread full-diff probe for the overlay's cwd. In-flight
+    /// dedup is a simple flag: refresh triggers while one flies are dropped —
+    /// the status cache will fire again on the next real change, and a
+    /// just-landed diff is fresh enough.
+    fn spawn_diff_probe(&mut self, cx: &mut Context<Self>) {
+        let Some(overlay) = self.diff_overlay.as_mut() else {
+            return;
+        };
+        if overlay.loading {
+            return;
+        }
+        overlay.loading = true;
+        let cwd = overlay.cwd.clone();
+        cx.spawn(async move |this, cx| {
+            let result = cx
+                .background_executor()
+                .spawn({
+                    let cwd = cwd.clone();
+                    async move { git_diff::probe(&cwd) }
+                })
+                .await;
+            let _ = this.update(cx, |app, cx| {
+                // Guarded by cwd: if the overlay was closed, or swapped to
+                // another repo while we flew, this landing is obsolete.
+                let Some(overlay) = app.diff_overlay.as_mut().filter(|o| o.cwd == cwd) else {
+                    return;
+                };
+                overlay.loading = false;
+                overlay.load = match result {
+                    Some(snap) => DiffLoad::Ready(snap),
+                    None => DiffLoad::NotARepo,
+                };
+                cx.notify();
+            });
+        })
+        .detach();
+    }
+
+    /// Re-probe the open overlay when the shared status cache learned
+    /// something newer than what's shown — called from the app's
+    /// `observe_global::<GitStatusCache>` hook, i.e. on the very triggers
+    /// (command end, agent-turn end, cwd change) that refresh the sidebar
+    /// numbers. Comparing branch + totals keeps the quiet case (unrelated
+    /// repo's probe landing) from spawning needless `git diff` runs.
+    pub(crate) fn maybe_refresh_diff_overlay(&mut self, cx: &mut Context<Self>) {
+        let Some(overlay) = self.diff_overlay.as_ref() else {
+            return;
+        };
+        if overlay.loading {
+            return;
+        }
+        let DiffLoad::Ready(snap) = &overlay.load else {
+            return; // initial probe pending, or repo gone — nothing to diff against
+        };
+        let Some(status) = cx
+            .try_global::<crate::terminal::git_status::GitStatusCache>()
+            .and_then(|cache| cache.status_for(&overlay.cwd))
+        else {
+            return;
+        };
+        if status.branch != snap.branch || (status.added, status.removed) != snap.totals() {
+            self.spawn_diff_probe(cx);
+        }
+    }
+
+    /// The overlay element, or `None` when closed. Mounted as the topmost
+    /// absolute child of the body area — it covers the terminal but not the
+    /// sidebar or title strip.
+    pub(crate) fn render_diff_overlay(&self, cx: &mut Context<Self>) -> Option<AnyElement> {
+        let overlay = self.diff_overlay.as_ref()?;
+
+        let content = match &overlay.load {
+            DiffLoad::Loading => self.diff_message("Reading diff…", cx),
+            DiffLoad::NotARepo => self.diff_message("Not a git repository", cx),
+            DiffLoad::Ready(snap) if snap.files.is_empty() && snap.untracked.is_empty() => {
+                self.diff_message("Working tree clean", cx)
+            }
+            DiffLoad::Ready(snap) => self.diff_file_list(snap, &overlay.toggled, cx),
+        };
+
+        let header = self.diff_header(overlay, cx);
+
+        Some(
+            v_flex()
+                .absolute()
+                .inset_0()
+                // Blocks mouse from reaching the terminal underneath.
+                .occlude()
+                .bg(cx.theme().background)
+                .text_color(cx.theme().foreground)
+                .track_focus(&overlay.focus_handle)
+                .on_key_down(cx.listener(|this, ev: &KeyDownEvent, window, cx| {
+                    if ev.keystroke.key.as_str() == "escape" {
+                        this.close_diff_overlay(window, cx);
+                    }
+                }))
+                .child(header)
+                .child(content)
+                .into_any_element(),
+        )
+    }
+
+    /// Top bar: branch, file/line totals, a subtle refresh spinner slot, ✕.
+    fn diff_header(
+        &self,
+        overlay: &DiffOverlayState,
+        cx: &mut Context<Self>,
+    ) -> impl IntoElement + use<> {
+        let (branch, files, untracked, added, removed) = match &overlay.load {
+            DiffLoad::Ready(s) => {
+                let (a, r) = s.totals();
+                (s.branch.clone(), s.files.len(), s.untracked.len(), a, r)
+            }
+            _ => (String::new(), 0, 0, 0, 0),
+        };
+        h_flex()
+            .flex_shrink_0()
+            .h(px(40.))
+            .px_3()
+            .gap_2()
+            .items_center()
+            .border_b_1()
+            .border_color(cx.theme().border)
+            .child(
+                gpui::svg()
+                    .path("icons/git-branch.svg")
+                    .flex_shrink_0()
+                    .size(px(13.))
+                    .text_color(cx.theme().muted_foreground),
+            )
+            .child(
+                div()
+                    .text_sm()
+                    .font_weight(FontWeight::MEDIUM)
+                    .child(branch),
+            )
+            .when(matches!(overlay.load, DiffLoad::Ready(_)), |bar| {
+                let mut summary = format!(
+                    "{} changed file{}",
+                    files,
+                    if files == 1 { "" } else { "s" }
+                );
+                if untracked > 0 {
+                    summary.push_str(&format!(" · {untracked} untracked"));
+                }
+                bar.child(
+                    div()
+                        .text_xs()
+                        .text_color(cx.theme().muted_foreground)
+                        .child(summary),
+                )
+                .when(added > 0, |bar| {
+                    bar.child(
+                        div()
+                            .text_xs()
+                            .text_color(cx.theme().success)
+                            .child(format!("+{added}")),
+                    )
+                })
+                .when(removed > 0, |bar| {
+                    bar.child(
+                        div()
+                            .text_xs()
+                            .text_color(cx.theme().danger)
+                            .child(format!("−{removed}")),
+                    )
+                })
+            })
+            // A quiet "refreshing" hint while a re-probe flies over stale data.
+            .when(overlay.loading && matches!(overlay.load, DiffLoad::Ready(_)), |bar| {
+                bar.child(
+                    div()
+                        .text_xs()
+                        .text_color(cx.theme().muted_foreground)
+                        .child("refreshing…"),
+                )
+            })
+            .child(div().flex_1())
+            .child(
+                Button::new("diff-overlay-close")
+                    .icon(IconName::Close)
+                    .ghost()
+                    .small()
+                    .on_click(cx.listener(|this, _, window, cx| {
+                        this.close_diff_overlay(window, cx);
+                    })),
+            )
+    }
+
+    /// A centered single-line state (loading / clean / not-a-repo).
+    fn diff_message(&self, text: &'static str, cx: &Context<Self>) -> AnyElement {
+        div()
+            .flex_1()
+            .flex()
+            .items_center()
+            .justify_center()
+            .text_sm()
+            .text_color(cx.theme().muted_foreground)
+            .child(text)
+            .into_any_element()
+    }
+
+    /// The scrolling column of per-file diff cards plus the untracked section.
+    fn diff_file_list(
+        &self,
+        snap: &DiffSnapshot,
+        toggled: &HashSet<String>,
+        cx: &mut Context<Self>,
+    ) -> AnyElement {
+        let mut list = v_flex().gap_3().p_4().w_full();
+        for (idx, file) in snap.files.iter().enumerate() {
+            let expanded = file_expanded(file, toggled);
+            list = list.child(self.diff_file_card(idx, file, expanded, cx));
+        }
+        if !snap.untracked.is_empty() {
+            list = list.child(self.diff_untracked_section(&snap.untracked, cx));
+        }
+        div()
+            .id("diff-overlay-scroll")
+            .flex_1()
+            .min_h_0()
+            .overflow_y_scroll()
+            .child(list)
+            .into_any_element()
+    }
+
+    /// One file's card: a clickable header row and, when expanded, the hunks.
+    fn diff_file_card(
+        &self,
+        idx: usize,
+        file: &FileDiff,
+        expanded: bool,
+        cx: &mut Context<Self>,
+    ) -> AnyElement {
+        // Binary files and pure renames have no hunk body to reveal; their
+        // header is inert (no chevron, no click).
+        let expandable = !file.binary && !file.hunks.is_empty();
+        let (glyph, glyph_color) = match file.status {
+            FileStatus::Added => ("A", cx.theme().success),
+            FileStatus::Modified => ("M", cx.theme().warning),
+            FileStatus::Deleted => ("D", cx.theme().danger),
+            FileStatus::Renamed => ("R", cx.theme().muted_foreground),
+        };
+        // `old → new` for renames, the plain path otherwise.
+        let shown_path = match &file.old_path {
+            Some(old) => format!("{old} → {}", file.path),
+            None => file.path.clone(),
+        };
+
+        let mut header = h_flex()
+            .id(("diff-file-header", idx))
+            .w_full()
+            .items_center()
+            .gap_2()
+            .px_2p5()
+            .py_1p5()
+            .bg(cx.theme().secondary)
+            .when(expandable, |h| {
+                let path = file.path.clone();
+                h.cursor_pointer()
+                    .hover(|s| s.bg(cx.theme().list_hover))
+                    .on_click(cx.listener(move |this, _, _window, cx| {
+                        if let Some(overlay) = this.diff_overlay.as_mut() {
+                            // Flip this file's override; removing an existing
+                            // entry returns it to its default state.
+                            if !overlay.toggled.remove(&path) {
+                                overlay.toggled.insert(path.clone());
+                            }
+                            cx.notify();
+                        }
+                    }))
+                    .child(
+                        Icon::new(if expanded {
+                            IconName::ChevronDown
+                        } else {
+                            IconName::ChevronRight
+                        })
+                        .small()
+                        .text_color(cx.theme().muted_foreground),
+                    )
+            })
+            .child(
+                div()
+                    .flex_shrink_0()
+                    .font_family(self.font_family.clone())
+                    .text_xs()
+                    .font_weight(FontWeight::BOLD)
+                    .text_color(glyph_color)
+                    .child(glyph),
+            )
+            .child(
+                div()
+                    .flex_1()
+                    .min_w_0()
+                    .truncate()
+                    .text_xs()
+                    .font_family(self.font_family.clone())
+                    .child(shown_path),
+            );
+        if file.binary {
+            header = header.child(
+                div()
+                    .flex_shrink_0()
+                    .text_xs()
+                    .text_color(cx.theme().muted_foreground)
+                    .child("binary"),
+            );
+        }
+        if file.added > 0 {
+            header = header.child(
+                div()
+                    .flex_shrink_0()
+                    .text_xs()
+                    .text_color(cx.theme().success)
+                    .child(format!("+{}", file.added)),
+            );
+        }
+        if file.removed > 0 {
+            header = header.child(
+                div()
+                    .flex_shrink_0()
+                    .text_xs()
+                    .text_color(cx.theme().danger)
+                    .child(format!("−{}", file.removed)),
+            );
+        }
+
+        let mut card = v_flex()
+            .w_full()
+            .border_1()
+            .border_color(cx.theme().border)
+            .rounded_md()
+            .overflow_hidden()
+            .child(header);
+
+        if expanded {
+            let mut body = v_flex().w_full();
+            for hunk in &file.hunks {
+                body = body.child(
+                    div()
+                        .w_full()
+                        .px_2()
+                        .py_0p5()
+                        .bg(cx.theme().muted)
+                        .text_xs()
+                        .font_family(self.font_family.clone())
+                        .text_color(cx.theme().muted_foreground)
+                        .truncate()
+                        .child(hunk.header.clone()),
+                );
+                for line in &hunk.lines {
+                    body = body.child(self.diff_line_row(line, cx));
+                }
+            }
+            if file.truncated {
+                body = body.child(
+                    div()
+                        .w_full()
+                        .px_2()
+                        .py_1()
+                        .text_xs()
+                        .text_color(cx.theme().muted_foreground)
+                        .child(format!(
+                            "Diff truncated at {} lines — run `git diff` in the terminal for the rest.",
+                            git_diff::MAX_LINES_PER_FILE
+                        )),
+                );
+            }
+            card = card.child(body);
+        }
+        card.into_any_element()
+    }
+
+    /// One diff line: two right-aligned line-number gutters, then the marker
+    /// and text in the terminal font, the whole row tinted green/red.
+    fn diff_line_row(&self, line: &git_diff::DiffLine, cx: &Context<Self>) -> AnyElement {
+        let (marker, tint) = match line.kind {
+            LineKind::Added => ("+", Some(cx.theme().success.opacity(0.12))),
+            LineKind::Removed => ("−", Some(cx.theme().danger.opacity(0.12))),
+            LineKind::Context => (" ", None),
+        };
+        let gutter = |no: Option<u32>| {
+            h_flex()
+                .flex_shrink_0()
+                .w(px(42.))
+                .justify_end()
+                .pr_1p5()
+                .text_color(cx.theme().muted_foreground.opacity(0.7))
+                .child(no.map(|n| n.to_string()).unwrap_or_default())
+        };
+        h_flex()
+            .w_full()
+            // Fixed row height so blank diff lines don't collapse.
+            .h(px(19.))
+            .items_center()
+            .text_xs()
+            .font_family(self.font_family.clone())
+            .when_some(tint, |row, bg| row.bg(bg))
+            .child(gutter(line.old_no))
+            .child(gutter(line.new_no))
+            .child(
+                div()
+                    .flex_1()
+                    .min_w_0()
+                    .truncate()
+                    // Tabs don't expand in UI text layout; four spaces keeps
+                    // indentation readable.
+                    .child(format!("{marker} {}", line.text.replace('\t', "    "))),
+            )
+            .into_any_element()
+    }
+
+    /// The trailing "Untracked files" section: names only — `git diff HEAD`
+    /// has no blob to diff a never-added file against, but hiding them would
+    /// read as lost work (agents create files constantly).
+    fn diff_untracked_section(&self, untracked: &[String], cx: &Context<Self>) -> AnyElement {
+        let mut section = v_flex()
+            .w_full()
+            .border_1()
+            .border_color(cx.theme().border)
+            .rounded_md()
+            .overflow_hidden()
+            .child(
+                div()
+                    .w_full()
+                    .px_2p5()
+                    .py_1p5()
+                    .bg(cx.theme().secondary)
+                    .text_xs()
+                    .text_color(cx.theme().muted_foreground)
+                    .child(format!("Untracked files ({})", untracked.len())),
+            );
+        for path in untracked {
+            section = section.child(
+                h_flex()
+                    .w_full()
+                    .items_center()
+                    .gap_2()
+                    .px_2p5()
+                    .py_1()
+                    .text_xs()
+                    .font_family(self.font_family.clone())
+                    .child(
+                        div()
+                            .flex_shrink_0()
+                            .font_weight(FontWeight::BOLD)
+                            .text_color(cx.theme().success)
+                            .child("A"),
+                    )
+                    .child(div().flex_1().min_w_0().truncate().child(path.clone())),
+            );
+        }
+        section.into_any_element()
+    }
+}
+
+/// Whether a file's body shows: small text diffs default open, big ones (and
+/// anything the user explicitly flipped) invert via the `toggled` set.
+fn file_expanded(file: &FileDiff, toggled: &HashSet<String>) -> bool {
+    let default_open = file.added + file.removed <= AUTO_COLLAPSE_LINES;
+    default_open != toggled.contains(&file.path)
+}
diff --git a/src/ui/mod.rs b/src/ui/mod.rs
index 689013f0..72856df4 100644
--- a/src/ui/mod.rs
+++ b/src/ui/mod.rs
@@ -7,6 +7,7 @@
 
 pub mod app;
 pub mod assets;
+pub mod diff_overlay;
 pub mod forwards;
 pub mod hints;
 pub mod home;
diff --git a/src/ui/tab_sidebar.rs b/src/ui/tab_sidebar.rs
index a34869dd..a55567e1 100644
--- a/src/ui/tab_sidebar.rs
+++ b/src/ui/tab_sidebar.rs
@@ -93,13 +93,39 @@ impl Tty7App {
             // branch, then the working-tree diff as green `+N` / red `−N`
             // badges — a per-session branch row. Built here so the row can
             // grow to fit it (a non-repo pane keeps the compact two-line row).
+            // The line is also the diff overlay's toggle: the cwd it probes is
+            // the same one the status resolved through, so overlay and badge
+            // always describe the same repo.
+            let git_cwd = tab
+                .pane
+                .focused_or_first(window, cx)
+                .and_then(|leaf| leaf.read(cx).git_status_cwd().map(|p| p.to_path_buf()));
             let git_line = tab.git_status(Some(window), cx).map(|g| {
                 let mut line = h_flex()
+                    .id(("sidebar-git", i))
                     .w_full()
                     .items_center()
                     .gap_1p5()
                     .text_xs()
                     .text_color(cx.theme().muted_foreground)
+                    // Click to peek the full diff in an overlay over the
+                    // terminal — without activating this row's tab, which is
+                    // the point: glance at another session's changes while
+                    // staying where you are. Quiet until hovered (the line
+                    // brightens and shows a pointer), so the rail stays calm.
+                    .when_some(git_cwd, |line, cwd| {
+                        line.cursor_pointer()
+                            .hover(|s| s.text_color(cx.theme().foreground))
+                            .on_mouse_down(
+                                MouseButton::Left,
+                                cx.listener(move |this, _: &MouseDownEvent, window, cx| {
+                                    // Swallow the press so the row/label
+                                    // handlers don't also activate the tab.
+                                    cx.stop_propagation();
+                                    this.toggle_diff_overlay(cwd.clone(), window, cx);
+                                }),
+                            )
+                    })
                     .child(
                         gpui::svg()
                             .path("icons/git-branch.svg")