diff --git a/tests/test-diff-newlines b/tests/test-diff-newlines
new file mode 100755
--- /dev/null
+++ b/tests/test-diff-newlines
@@ -0,0 +1,8 @@
+#!/bin/sh
+
+hg init
+python -c 'print "confuse str.splitlines\nembedded\rnewline"' > a
+hg ci -Ama -d '1 0'
+echo clean diff >> a
+hg ci -mb -d '2 0'
+hg diff -r0 -r1