diff --git a/src/diff.c b/src/diff.c
index e1c8f58..c50670c 100644
--- a/src/diff.c
+++ b/src/diff.c
@@ -1520,6 +1520,7 @@
 	if (!wp->w_p_diff)
 	    wp->w_p_wrap_save = wp->w_p_wrap;
 	wp->w_p_wrap = FALSE;
+	wp->w_skipcol = 0;
     }
 # ifdef FEAT_FOLDING
     if (!wp->w_p_diff)
@@ -1583,8 +1584,11 @@
 		    wp->w_p_crb = wp->w_p_crb_save;
 		if (!(diff_flags & DIFF_FOLLOWWRAP))
 		{
-		    if (!wp->w_p_wrap)
-			wp->w_p_wrap = wp->w_p_wrap_save;
+		    if (!wp->w_p_wrap && wp->w_p_wrap_save)
+		    {
+			wp->w_p_wrap = TRUE;
+			wp->w_leftcol = 0;
+		    }
 		}
 #ifdef FEAT_FOLDING
 		free_string_option(wp->w_p_fdm);
diff --git a/src/testdir/test_diffmode.vim b/src/testdir/test_diffmode.vim
index b44879f..7602bd3 100644
--- a/src/testdir/test_diffmode.vim
+++ b/src/testdir/test_diffmode.vim
Binary files differ
diff --git a/src/version.c b/src/version.c
index 9f78196..c8037f7 100644
--- a/src/version.c
+++ b/src/version.c
@@ -705,6 +705,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    183,
+/**/
     182,
 /**/
     181,