diff --git a/src/fileio.c b/src/fileio.c
index c7a2b74..2881cbc 100644
--- a/src/fileio.c
+++ b/src/fileio.c
@@ -2605,6 +2605,11 @@
      */
     write_no_eol_lnum = read_no_eol_lnum;
 
+    /* When reloading a buffer put the cursor at the first line that is
+     * different. */
+    if (flags & READ_KEEP_UNDO)
+	u_find_first_changed();
+
 #ifdef FEAT_PERSISTENT_UNDO
     /*
      * When opening a new file locate undo info and read it.
@@ -7095,7 +7100,7 @@
 	old_cursor = curwin->w_cursor;
 	old_topline = curwin->w_topline;
 
-	if (saved == OK && (p_ur < 0 || curbuf->b_ml.ml_line_count <= p_ur))
+	if (p_ur < 0 || curbuf->b_ml.ml_line_count <= p_ur)
 	{
 	    /* Save all the text, so that the reload can be undone.
 	     * Sync first so that this is a separate undo-able action. */
@@ -7169,8 +7174,10 @@
 		    u_clearall(buf);
 		}
 		else
+		{
 		    /* Mark all undo states as changed. */
 		    u_unchanged(curbuf);
+		}
 	    }
 	}
 	vim_free(ea.cmd);
diff --git a/src/proto/undo.pro b/src/proto/undo.pro
index 2cb149f..f6741c6 100644
--- a/src/proto/undo.pro
+++ b/src/proto/undo.pro
@@ -17,6 +17,7 @@
 void ex_undolist __ARGS((exarg_T *eap));
 void ex_undojoin __ARGS((exarg_T *eap));
 void u_unchanged __ARGS((buf_T *buf));
+void u_find_first_changed __ARGS((void));
 void u_update_save_nr __ARGS((buf_T *buf));
 void u_clearall __ARGS((buf_T *buf));
 void u_saveline __ARGS((linenr_T lnum));
diff --git a/src/undo.c b/src/undo.c
index eb887d8..1b74197 100644
--- a/src/undo.c
+++ b/src/undo.c
@@ -2923,6 +2923,42 @@
 }
 
 /*
+ * After reloading a buffer which was saved for 'undoreload': Find the first
+ * line that was changed and set the cursor there.
+ */
+    void
+u_find_first_changed()
+{
+    u_header_T	*uhp = curbuf->b_u_newhead;
+    u_entry_T   *uep;
+    linenr_T	lnum;
+
+    if (curbuf->b_u_curhead != NULL || uhp == NULL)
+	return;  /* undid something in an autocmd? */
+
+    /* Check that the last undo block was for the whole file. */
+    uep = uhp->uh_entry;
+    if (uep->ue_top != 0 || uep->ue_bot != 0)
+	return;
+
+    for (lnum = 1; lnum < curbuf->b_ml.ml_line_count
+					      && lnum <= uep->ue_size; ++lnum)
+	if (STRCMP(ml_get_buf(curbuf, lnum, FALSE),
+						uep->ue_array[lnum - 1]) != 0)
+	{
+	    clearpos(&(uhp->uh_cursor));
+	    uhp->uh_cursor.lnum = lnum;
+	    return;
+	}
+    if (curbuf->b_ml.ml_line_count != uep->ue_size)
+    {
+	/* lines added or deleted at the end, put the cursor there */
+	clearpos(&(uhp->uh_cursor));
+	uhp->uh_cursor.lnum = lnum;
+    }
+}
+
+/*
  * Increase the write count, store it in the last undo header, what would be
  * used for "u".
  */