=== Using diff.word-diff config option (4.7+) ===

Since [[Release4.7|Mercurial 4.7]] word diff is in core. To enable it, put this in your ~/.hgrc:

{{{
[diff]
word-diff = true
}}}

It's also enabled by [[FriendlyHGPlan|ui.tweakdefaults]].

To configure word diff colors/styles:

{{{
[colors]
diff.deleted.changed = ...
diff.deleted.unchanged = ...
diff.inserted.changed = ...
diff.inserted.unchanged = ...
}}}

Default colors are defined in [[Source:mercurial/color.py]]


=== Using extdiff extension ===

Making a word difference using the ExtdiffExtension and GNU wdiff, somehow what {{{git diff --color-words}}} does.

Steps:

 1. Download [[https://github.com/junghans/cwdiff/blob/master/cwdiff|cwdiff]], a shell script, which wraps wdiff to support directories and colorizes the output.
 2. Enable ExtdiffExtension (in ~/.hgrc): 
{{{
  [extensions]
  extdiff =
}}}
 3.#3 Add wdiff command (in ~/.hgrc): 
{{{
  [extdiff]
  # if cwdiff is in your path, otherwise set to wherever you've installed cwdiff
  cmd.wdiff = cwdiff
  #add --no-color below, if you dislike colors!
  opts.wdiff = --diff --ab
}}}
 4.#4 Run
{{{
$ hg wdiff
}}}