diff --git a/internal/suggestdiff/diff.go b/internal/suggestdiff/diff.go
index aabab7c..922dd3c 100644
--- a/internal/suggestdiff/diff.go
+++ b/internal/suggestdiff/diff.go
@@ -51,7 +51,13 @@ func ComputeLineDiff(oldLines, newLines []string) []DiffLine {
 	back := make([]DiffLine, 0, max(m, n)*2)
 	for i > 0 || j > 0 {
 		if i > 0 && j > 0 && strings.EqualFold(strings.TrimSpace(oldLines[i-1]), strings.TrimSpace(newLines[j-1])) {
-			back = append(back, DiffLine{Type: DiffContext, Content: oldLines[i-1]})
+			if oldLines[i-1] == newLines[j-1] {
+				back = append(back, DiffLine{Type: DiffContext, Content: oldLines[i-1]})
+			} else {
+				// Fuzzy equality is only for alignment; preserve raw changes in the rendered diff.
+				back = append(back, DiffLine{Type: DiffAdded, Content: newLines[j-1]})
+				back = append(back, DiffLine{Type: DiffDeleted, Content: oldLines[i-1]})
+			}
 			i--
 			j--
 		} else if j > 0 && (i == 0 || lcs[i][j-1] >= lcs[i-1][j]) {
diff --git a/internal/suggestdiff/diff_test.go b/internal/suggestdiff/diff_test.go
index a0d2916..5c8b912 100644
--- a/internal/suggestdiff/diff_test.go
+++ b/internal/suggestdiff/diff_test.go
@@ -72,14 +72,6 @@ func TestComputeLineDiff(t *testing.T) {
 			wantAdds: 0,
 			wantDels: 1,
 		},
-		{
-			name:     "case insensitive match with whitespace",
-			old:      []string{"  Hello  "},
-			new:      []string{"hello"},
-			wantLen:  1,
-			wantAdds: 0,
-			wantDels: 0,
-		},
 		{
 			name:     "multi-line edit",
 			old:      []string{"func main() {", "  fmt.Println(\"old\")", "}"},
@@ -115,6 +107,70 @@ func TestComputeLineDiff(t *testing.T) {
 	}
 }
 
+func TestComputeLineDiff_FuzzyMatchPreservesRawChanges(t *testing.T) {
+	tests := []struct {
+		name string
+		old  string
+		new  string
+	}{
+		{
+			name: "case-only change",
+			old:  "const maxRetries = 3",
+			new:  "const MaxRetries = 3",
+		},
+		{
+			name: "indentation-only change",
+			old:  "\treturn nil",
+			new:  "\t\treturn nil",
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			got := ComputeLineDiff([]string{tt.old}, []string{tt.new})
+			if len(got) != 2 {
+				t.Fatalf("diff = %v, want delete + add", got)
+			}
+			if got[0].Type != DiffDeleted || got[0].Content != tt.old {
+				t.Errorf("deleted line = %+v, want %q", got[0], tt.old)
+			}
+			if got[1].Type != DiffAdded || got[1].Content != tt.new {
+				t.Errorf("added line = %+v, want %q", got[1], tt.new)
+			}
+		})
+	}
+}
+
+func TestComputeLineDiff_FuzzyMatchPreservesRawChangesWithContext(t *testing.T) {
+	old := []string{
+		"func validate() error {",
+		"\treturn nil",
+		"}",
+	}
+	new := []string{
+		"func validate() error {",
+		"\t\treturn nil",
+		"}",
+	}
+
+	got := ComputeLineDiff(old, new)
+	want := []DiffLine{
+		{Type: DiffContext, Content: "func validate() error {"},
+		{Type: DiffDeleted, Content: "\treturn nil"},
+		{Type: DiffAdded, Content: "\t\treturn nil"},
+		{Type: DiffContext, Content: "}"},
+	}
+
+	if len(got) != len(want) {
+		t.Fatalf("diff = %v, want %v", got, want)
+	}
+	for i := range want {
+		if got[i] != want[i] {
+			t.Errorf("diff[%d] = %+v, want %+v", i, got[i], want[i])
+		}
+	}
+}
+
 func TestComputeLineDiff_ContextContent(t *testing.T) {
 	old := []string{"a", "b", "c"}
 	new := []string{"a", "x", "c"}