It appears that when "diff --color" wants to colourize a multi-line block of text, it outputs ANSI escape sequences only at the beginning and end of the block. However, it would be preferable if the escape sequences were repeated at the beginning and end of each separate line.
Although this might seem inefficient, the current behavior causes bad interactions with other software. For example, with GNU "less": diff --color=always -u file.c~ file.c | less -R Only the first line of a multi-line difference gets coloured. See bug #294, which is marked as "probably will not fix": With the -R flag, less only honors coloring within a single line. If a color extends across a newline, the color is reset at the start of the next line. The performance cost of implementing multi-line coloring is excessive. For example, when jumping to the end of the file using the G command, less could no longer just seek to the end of the file, but would need to read and parse any color sequences in the entire file. http://www.greenwoodsoftware.com/less/bugs.html In any situation where the output of "diff --color" is subjected to further processing, colour-escaped text which spans multiple lines will cause a problem, if either the first or last line of the block is somehow removed or hidden, as with "less". The solution is to repeat the escape sequences before and after each newline: <COLOUR-ESCAPE-IN>first line of block<COLOUR-ESCAPE-OUT>\n <COLOUR-ESCAPE-IN>second line of block<COLOUR-ESCAPE-OUT>\n <COLOUR-ESCAPE-IN>third line of block<COLOUR-ESCAPE-OUT>\n Please consider making this small behavior change, so that "diff --color" will be useful in situations other than direct output to the terminal (as is clearly intended by the existence of the "--color=always" option). -- Ian Bruce