diff --git a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/ChangesContent/components/DiffViewer/DiffViewer.tsx b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/ChangesContent/components/DiffViewer/DiffViewer.tsx
index 77175a3dfb2..bd191dd5a5f 100644
--- a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/ChangesContent/components/DiffViewer/DiffViewer.tsx
+++ b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/ChangesContent/components/DiffViewer/DiffViewer.tsx
@@ -48,6 +48,7 @@ export interface DiffViewerContextMenuProps {
 interface DiffViewerProps {
 	contents: FileContents;
 	viewMode: DiffViewMode;
+	hideUnchangedRegions?: boolean;
 	filePath: string;
 	editable?: boolean;
 	onSave?: (content: string) => void;
@@ -59,6 +60,7 @@ interface DiffViewerProps {
 export function DiffViewer({
 	contents,
 	viewMode,
+	hideUnchangedRegions = false,
 	filePath,
 	editable = false,
 	onSave,
@@ -187,7 +189,7 @@ export function DiffViewer({
 
 	const diffEditor = (
 		<DiffEditor
-			key={`${filePath}-${viewMode}`}
+			key={`${filePath}-${viewMode}-${hideUnchangedRegions}`}
 			height="100%"
 			original={contents.original}
 			modified={contents.modified}
@@ -209,6 +211,9 @@ export function DiffViewer({
 				renderOverviewRuler: true,
 				diffWordWrap: "on",
 				contextmenu: !contextMenuProps, // Disable Monaco's context menu if we have custom props
+				hideUnchangedRegions: {
+					enabled: hideUnchangedRegions,
+				},
 			}}
 		/>
 	);
diff --git a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/TabView/FileViewerPane/FileViewerPane.tsx b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/TabView/FileViewerPane/FileViewerPane.tsx
index cf17304c941..3c2e5cea3cc 100644
--- a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/TabView/FileViewerPane/FileViewerPane.tsx
+++ b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/TabView/FileViewerPane/FileViewerPane.tsx
@@ -58,8 +58,12 @@ export function FileViewerPane({
 }: FileViewerPaneProps) {
 	// Use granular selector to only get this pane's fileViewer data
 	const fileViewer = useTabsStore((s) => s.panes[paneId]?.fileViewer);
-	const { viewMode: diffViewMode, setViewMode: setDiffViewMode } =
-		useChangesStore();
+	const {
+		viewMode: diffViewMode,
+		setViewMode: setDiffViewMode,
+		hideUnchangedRegions,
+		toggleHideUnchangedRegions,
+	} = useChangesStore();
 
 	const editorRef = useRef<Monaco.editor.IStandaloneCodeEditor | null>(null);
 	const [isDirty, setIsDirty] = useState(false);
@@ -277,8 +281,10 @@ export function FileViewerPane({
 							hasDiff={hasDiff}
 							splitOrientation={handlers.splitOrientation}
 							diffViewMode={diffViewMode}
+							hideUnchangedRegions={hideUnchangedRegions}
 							onViewModeChange={handleViewModeChange}
 							onDiffViewModeChange={setDiffViewMode}
+							onToggleHideUnchangedRegions={toggleHideUnchangedRegions}
 							onSplitPane={handlers.onSplitPane}
 							onPin={handlePin}
 							onClosePane={handlers.onClosePane}
@@ -300,6 +306,7 @@ export function FileViewerPane({
 					initialLine={initialLine}
 					initialColumn={initialColumn}
 					diffViewMode={diffViewMode}
+					hideUnchangedRegions={hideUnchangedRegions}
 					onSaveRaw={handleSaveRaw}
 					onSaveDiff={isDiffEditable ? handleSaveDiff : undefined}
 					onEditorChange={handleEditorChange}
diff --git a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/TabView/FileViewerPane/components/FileViewerContent/FileViewerContent.tsx b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/TabView/FileViewerPane/components/FileViewerContent/FileViewerContent.tsx
index 1875db7f057..cdbde9c17a6 100644
--- a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/TabView/FileViewerPane/components/FileViewerContent/FileViewerContent.tsx
+++ b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/TabView/FileViewerPane/components/FileViewerContent/FileViewerContent.tsx
@@ -54,6 +54,7 @@ interface FileViewerContentProps {
 	initialLine?: number;
 	initialColumn?: number;
 	diffViewMode: DiffViewMode;
+	hideUnchangedRegions: boolean;
 	onSaveRaw: () => Promise<void>;
 	onSaveDiff?: (content: string) => Promise<void>;
 	onEditorChange: (value: string | undefined) => void;
@@ -83,6 +84,7 @@ export function FileViewerContent({
 	initialLine,
 	initialColumn,
 	diffViewMode,
+	hideUnchangedRegions,
 	onSaveRaw,
 	onSaveDiff,
 	onEditorChange,
@@ -190,6 +192,7 @@ export function FileViewerContent({
 					language: diffData.language,
 				}}
 				viewMode={diffViewMode}
+				hideUnchangedRegions={hideUnchangedRegions}
 				filePath={filePath}
 				editable={isDiffEditable}
 				onSave={isDiffEditable ? onSaveDiff : undefined}
diff --git a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/TabView/FileViewerPane/components/FileViewerToolbar/FileViewerToolbar.tsx b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/TabView/FileViewerPane/components/FileViewerToolbar/FileViewerToolbar.tsx
index e6868ec6239..d62851994d7 100644
--- a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/TabView/FileViewerPane/components/FileViewerToolbar/FileViewerToolbar.tsx
+++ b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/TabView/FileViewerPane/components/FileViewerToolbar/FileViewerToolbar.tsx
@@ -2,6 +2,7 @@ import { ToggleGroup, ToggleGroupItem } from "@superset/ui/toggle-group";
 import { Tooltip, TooltipContent, TooltipTrigger } from "@superset/ui/tooltip";
 import { cn } from "@superset/ui/utils";
 import {
+	TbFold,
 	TbLayoutSidebarRightFilled,
 	TbListDetails,
 	TbPinFilled,
@@ -21,8 +22,10 @@ interface FileViewerToolbarProps {
 	hasDiff: boolean;
 	splitOrientation: SplitOrientation;
 	diffViewMode: DiffViewMode;
+	hideUnchangedRegions: boolean;
 	onViewModeChange: (value: string) => void;
 	onDiffViewModeChange: (mode: DiffViewMode) => void;
+	onToggleHideUnchangedRegions: () => void;
 	onSplitPane: (e: React.MouseEvent) => void;
 	/** Pin this pane (convert from preview to permanent) */
 	onPin: () => void;
@@ -38,8 +41,10 @@ export function FileViewerToolbar({
 	hasDiff,
 	splitOrientation,
 	diffViewMode,
+	hideUnchangedRegions,
 	onViewModeChange,
 	onDiffViewModeChange,
+	onToggleHideUnchangedRegions,
 	onSplitPane,
 	onPin,
 	onClosePane,
@@ -75,50 +80,81 @@ export function FileViewerToolbar({
 					value={viewMode}
 					onValueChange={onViewModeChange}
 					size="sm"
-					className="h-5"
+					className="h-5 bg-muted/50 rounded-md"
 				>
 					{isMarkdown && (
 						<ToggleGroupItem
 							value="rendered"
-							className="h-5 px-1.5 text-[10px]"
+							className="h-5 px-1.5 text-[10px] text-muted-foreground data-[state=on]:bg-background data-[state=on]:text-foreground data-[state=on]:shadow-sm"
 						>
 							Rendered
 						</ToggleGroupItem>
 					)}
-					<ToggleGroupItem value="raw" className="h-5 px-1.5 text-[10px]">
+					<ToggleGroupItem
+						value="raw"
+						className="h-5 px-1.5 text-[10px] text-muted-foreground data-[state=on]:bg-background data-[state=on]:text-foreground data-[state=on]:shadow-sm"
+					>
 						Raw
 					</ToggleGroupItem>
 					{hasDiff && (
-						<ToggleGroupItem value="diff" className="h-5 px-1.5 text-[10px]">
+						<ToggleGroupItem
+							value="diff"
+							className="h-5 px-1.5 text-[10px] text-muted-foreground data-[state=on]:bg-background data-[state=on]:text-foreground data-[state=on]:shadow-sm"
+						>
 							Diff
 						</ToggleGroupItem>
 					)}
 				</ToggleGroup>
 				{viewMode === "diff" && (
-					<Tooltip>
-						<TooltipTrigger asChild>
-							<button
-								type="button"
-								onClick={() =>
-									onDiffViewModeChange(
-										diffViewMode === "side-by-side" ? "inline" : "side-by-side",
-									)
-								}
-								className="rounded p-0.5 text-muted-foreground/60 transition-colors hover:text-muted-foreground"
-							>
-								{diffViewMode === "side-by-side" ? (
-									<TbLayoutSidebarRightFilled className="size-3.5" />
-								) : (
-									<TbListDetails className="size-3.5" />
-								)}
-							</button>
-						</TooltipTrigger>
-						<TooltipContent side="bottom" showArrow={false}>
-							{diffViewMode === "side-by-side"
-								? "Switch to inline diff"
-								: "Switch to side by side diff"}
-						</TooltipContent>
-					</Tooltip>
+					<>
+						<Tooltip>
+							<TooltipTrigger asChild>
+								<button
+									type="button"
+									onClick={() =>
+										onDiffViewModeChange(
+											diffViewMode === "side-by-side"
+												? "inline"
+												: "side-by-side",
+										)
+									}
+									className="rounded p-0.5 text-muted-foreground/60 transition-colors hover:text-muted-foreground"
+								>
+									{diffViewMode === "side-by-side" ? (
+										<TbLayoutSidebarRightFilled className="size-3.5" />
+									) : (
+										<TbListDetails className="size-3.5" />
+									)}
+								</button>
+							</TooltipTrigger>
+							<TooltipContent side="bottom" showArrow={false}>
+								{diffViewMode === "side-by-side"
+									? "Switch to inline diff"
+									: "Switch to side by side diff"}
+							</TooltipContent>
+						</Tooltip>
+						<Tooltip>
+							<TooltipTrigger asChild>
+								<button
+									type="button"
+									onClick={onToggleHideUnchangedRegions}
+									className={cn(
+										"rounded p-0.5 transition-colors hover:text-muted-foreground",
+										hideUnchangedRegions
+											? "text-foreground"
+											: "text-muted-foreground/60",
+									)}
+								>
+									<TbFold className="size-3.5" />
+								</button>
+							</TooltipTrigger>
+							<TooltipContent side="bottom" showArrow={false}>
+								{hideUnchangedRegions
+									? "Show all lines"
+									: "Hide unchanged regions"}
+							</TooltipContent>
+						</Tooltip>
+					</>
 				)}
 				<PaneToolbarActions
 					splitOrientation={splitOrientation}
diff --git a/apps/desktop/src/renderer/stores/changes/store.ts b/apps/desktop/src/renderer/stores/changes/store.ts
index 15e68b9c5aa..f792859bfcb 100644
--- a/apps/desktop/src/renderer/stores/changes/store.ts
+++ b/apps/desktop/src/renderer/stores/changes/store.ts
@@ -21,6 +21,7 @@ interface ChangesState {
 	expandedSections: Record<ChangeCategory, boolean>;
 	baseBranch: string | null;
 	showRenderedMarkdown: Record<string, boolean>;
+	hideUnchangedRegions: boolean;
 
 	selectFile: (
 		worktreePath: string,
@@ -36,6 +37,7 @@ interface ChangesState {
 	setBaseBranch: (branch: string | null) => void;
 	toggleRenderedMarkdown: (worktreePath: string) => void;
 	getShowRenderedMarkdown: (worktreePath: string) => boolean;
+	toggleHideUnchangedRegions: () => void;
 	reset: (worktreePath: string) => void;
 }
 
@@ -51,6 +53,7 @@ const initialState = {
 	},
 	baseBranch: null,
 	showRenderedMarkdown: {} as Record<string, boolean>,
+	hideUnchangedRegions: false,
 };
 
 export const useChangesStore = create<ChangesState>()(
@@ -125,6 +128,10 @@ export const useChangesStore = create<ChangesState>()(
 					return get().showRenderedMarkdown[worktreePath] ?? false;
 				},
 
+				toggleHideUnchangedRegions: () => {
+					set({ hideUnchangedRegions: !get().hideUnchangedRegions });
+				},
+
 				reset: (worktreePath) => {
 					const { selectedFiles } = get();
 					set({
@@ -144,6 +151,7 @@ export const useChangesStore = create<ChangesState>()(
 					expandedSections: state.expandedSections,
 					baseBranch: state.baseBranch,
 					showRenderedMarkdown: state.showRenderedMarkdown,
+					hideUnchangedRegions: state.hideUnchangedRegions,
 				}),
 			},
 		),
diff --git a/bun.lock b/bun.lock
index 0396673968d..f3cfa340843 100644
--- a/bun.lock
+++ b/bun.lock
@@ -122,7 +122,7 @@
     },
     "apps/desktop": {
       "name": "@superset/desktop",
-      "version": "0.0.57",
+      "version": "0.0.58",
       "dependencies": {
         "@dnd-kit/core": "^6.3.1",
         "@dnd-kit/sortable": "^10.0.0",