diff --git a/payload_generator/annotated_operation.cc b/payload_generator/annotated_operation.cc
index 0e73479..7f8a36c 100644
--- a/payload_generator/annotated_operation.cc
+++ b/payload_generator/annotated_operation.cc
@@ -8,6 +8,8 @@
 #include <base/strings/string_number_conversions.h>
 #include <base/strings/stringprintf.h>
 
+#include "update_engine/utils.h"
+
 using std::string;
 
 namespace chromeos_update_engine {
@@ -36,6 +38,18 @@
   }
 }
 
+bool AnnotatedOperation::SetOperationBlob(chromeos::Blob* blob, int data_fd,
+                                          off_t* data_file_size) {
+  TEST_AND_RETURN_FALSE(utils::PWriteAll(data_fd,
+                                         blob->data(),
+                                         blob->size(),
+                                         *data_file_size));
+  op.set_data_length(blob->size());
+  op.set_data_offset(*data_file_size);
+  *data_file_size += blob->size();
+  return true;
+}
+
 string InstallOperationTypeName(
     DeltaArchiveManifest_InstallOperation_Type op_type) {
   switch (op_type) {
diff --git a/payload_generator/annotated_operation.h b/payload_generator/annotated_operation.h
index e370cfe..d07b6ae 100644
--- a/payload_generator/annotated_operation.h
+++ b/payload_generator/annotated_operation.h
@@ -8,6 +8,7 @@
 #include <ostream>  // NOLINT(readability/streams)
 #include <string>
 
+#include <chromeos/secure_blob.h>
 #include "update_engine/update_metadata.pb.h"
 
 namespace chromeos_update_engine {
@@ -23,6 +24,12 @@
   // Sets |name| to a human readable representation of a chunk in a file.
   void SetNameFromFileAndChunk(const std::string& filename,
                                off_t chunk_offset, off_t chunk_size);
+
+  // Writes |blob| to the end of |data_fd|, and updates |data_file_size| to
+  // match the new size of |data_fd|. It sets the data_offset and data_length
+  // in AnnotatedOperation to match the offset and size of |blob| in |data_fd|.
+  bool SetOperationBlob(chromeos::Blob* blob, int data_fd,
+                        off_t* data_file_size);
 };
 
 // For logging purposes.
diff --git a/payload_generator/delta_diff_generator.cc b/payload_generator/delta_diff_generator.cc
index ff759f6..14586f7 100644
--- a/payload_generator/delta_diff_generator.cc
+++ b/payload_generator/delta_diff_generator.cc
@@ -554,7 +554,7 @@
   // Read in bytes from new data.
   chromeos::Blob new_data;
   TEST_AND_RETURN_FALSE(utils::ReadExtents(new_part,
-                                           &dst_extents,
+                                           dst_extents,
                                            &new_data,
                                            kBlockSize * blocks_to_write,
                                            kBlockSize));
@@ -582,7 +582,7 @@
   if (original) {
     // Read old data.
     TEST_AND_RETURN_FALSE(
-        utils::ReadExtents(old_part, &src_extents, &old_data,
+        utils::ReadExtents(old_part, src_extents, &old_data,
                            kBlockSize * blocks_to_read, kBlockSize));
     if (old_data == new_data) {
       // No change in data.
@@ -933,6 +933,16 @@
   }
 }
 
+// Stores all extents in |extents| into |out_vector|.
+void DeltaDiffGenerator::ExtentsToVector(
+    const google::protobuf::RepeatedPtrField<Extent>& extents,
+    vector<Extent>* out_vector) {
+  out_vector->clear();
+  for (int i = 0; i < extents.size(); i++) {
+    out_vector->push_back(extents.Get(i));
+  }
+}
+
 // Returns true if |op| is a no-op operation that doesn't do any useful work
 // (e.g., a move operation that copies blocks onto themselves).
 bool DeltaDiffGenerator::IsNoopOperation(
@@ -1069,12 +1079,23 @@
                                            data_file_fd,
                                            data_file_size));
   TEST_AND_RETURN_FALSE(FragmentOperations(kernel_ops,
-                                           config.target.rootfs_part,
+                                           config.target.kernel_part,
                                            data_file_fd,
                                            data_file_size));
   SortOperationsByDestination(rootfs_ops);
   SortOperationsByDestination(kernel_ops);
-
+  // TODO(alliewood): Change merge operations to use config.chunk_size once
+  // specifying chunk_size on the command line works. crbug/485397.
+  TEST_AND_RETURN_FALSE(MergeOperations(rootfs_ops,
+                                        kDefaultChunkSize,
+                                        config.target.rootfs_part,
+                                        data_file_fd,
+                                        data_file_size));
+  TEST_AND_RETURN_FALSE(MergeOperations(kernel_ops,
+                                        kDefaultChunkSize,
+                                        config.target.kernel_part,
+                                        data_file_fd,
+                                        data_file_size));
   return true;
 }
 
@@ -1364,7 +1385,7 @@
 
 bool DeltaDiffGenerator::FragmentOperations(
     vector<AnnotatedOperation>* aops,
-    const string& target_rootfs_part,
+    const string& target_part_path,
     int data_fd,
     off_t* data_file_size) {
   vector<AnnotatedOperation> fragmented_aops;
@@ -1379,7 +1400,7 @@
                DeltaArchiveManifest_InstallOperation_Type_REPLACE_BZ) {
       TEST_AND_RETURN_FALSE(SplitReplaceBz(aop,
                                            &fragmented_aops,
-                                           target_rootfs_part,
+                                           target_part_path,
                                            data_fd,
                                            data_file_size));
     } else {
@@ -1483,16 +1504,16 @@
 bool DeltaDiffGenerator::SplitReplaceBz(
     const AnnotatedOperation& original_aop,
     vector<AnnotatedOperation>* result_aops,
-    const string& target_rootfs_part,
+    const string& target_part_path,
     int data_fd,
     off_t* data_file_size) {
   DeltaArchiveManifest_InstallOperation original_op = original_aop.op;
   TEST_AND_RETURN_FALSE(original_op.type() ==
                         DeltaArchiveManifest_InstallOperation_Type_REPLACE_BZ);
 
-  int target_rootfs_fd = open(target_rootfs_part.c_str(), O_RDONLY, 000);
-  TEST_AND_RETURN_FALSE_ERRNO(target_rootfs_fd >= 0);
-  ScopedFdCloser target_rootfs_fd_closer(&target_rootfs_fd);
+  int target_part_fd = open(target_part_path.c_str(), O_RDONLY, 000);
+  TEST_AND_RETURN_FALSE_ERRNO(target_part_fd >= 0);
+  ScopedFdCloser target_part_fd_closer(&target_part_fd);
 
   for (int i = 0; i < original_op.dst_extents_size(); i++) {
     Extent dst_ext = original_op.dst_extents(i);
@@ -1506,7 +1527,7 @@
     // Get the original uncompressed data for this extent.
     ssize_t bytes_read;
     chromeos::Blob uncompressed_data(uncompressed_data_size);
-    TEST_AND_RETURN_FALSE(utils::PReadAll(target_rootfs_fd,
+    TEST_AND_RETURN_FALSE(utils::PReadAll(target_part_fd,
                                           uncompressed_data.data(),
                                           uncompressed_data_size,
                                           kBlockSize * dst_ext.start_block(),
@@ -1517,20 +1538,128 @@
     chromeos::Blob new_data_bz;
     TEST_AND_RETURN_FALSE(BzipCompress(uncompressed_data, &new_data_bz));
     CHECK(!new_data_bz.empty());
-    new_op.set_data_length(new_data_bz.size());
-    new_op.set_data_offset(*data_file_size);
-    TEST_AND_RETURN_FALSE(utils::PWriteAll(data_fd,
-                                           new_data_bz.data(),
-                                           new_data_bz.size(),
-                                           *data_file_size));
-    *data_file_size += new_data_bz.size();
 
     AnnotatedOperation new_aop;
     new_aop.op = new_op;
+    new_aop.SetOperationBlob(&new_data_bz, data_fd, data_file_size);
     new_aop.name = base::StringPrintf("%s:%d", original_aop.name.c_str(), i);
     result_aops->push_back(new_aop);
   }
   return true;
 }
 
+bool DeltaDiffGenerator::MergeOperations(vector<AnnotatedOperation>* aops,
+                                         off_t chunk_size,
+                                         const string& target_part_path,
+                                         int data_fd,
+                                         off_t* data_file_size) {
+  vector<AnnotatedOperation> new_aops;
+  for (const AnnotatedOperation& curr_aop : *aops) {
+    if (new_aops.empty()) {
+      new_aops.push_back(curr_aop);
+      continue;
+    }
+    AnnotatedOperation& last_aop = new_aops.back();
+
+    if (last_aop.op.dst_extents_size() <= 0 ||
+        curr_aop.op.dst_extents_size() <= 0) {
+      new_aops.push_back(curr_aop);
+      continue;
+    }
+    uint32_t last_dst_idx = last_aop.op.dst_extents_size() - 1;
+    uint32_t last_end_block =
+        last_aop.op.dst_extents(last_dst_idx).start_block() +
+        last_aop.op.dst_extents(last_dst_idx).num_blocks();
+    uint32_t curr_start_block = curr_aop.op.dst_extents(0).start_block();
+    uint32_t combined_block_count =
+        last_aop.op.dst_extents(last_dst_idx).num_blocks() +
+        curr_aop.op.dst_extents(0).num_blocks();
+    bool good_op_type =
+        curr_aop.op.type() ==
+            DeltaArchiveManifest_InstallOperation_Type_SOURCE_COPY ||
+        curr_aop.op.type() ==
+            DeltaArchiveManifest_InstallOperation_Type_REPLACE ||
+        curr_aop.op.type() ==
+            DeltaArchiveManifest_InstallOperation_Type_REPLACE_BZ;
+    if (good_op_type &&
+        last_aop.op.type() == curr_aop.op.type() &&
+        last_end_block == curr_start_block &&
+        static_cast<off_t>(combined_block_count * kBlockSize) <= chunk_size) {
+      // If the operations have the same type (which is a type that we can
+      // merge), are contiguous, are fragmented to have one destination extent,
+      // and their combined block count would be less than chunk size, merge
+      // them.
+      last_aop.name = base::StringPrintf("%s,%s",
+                                         last_aop.name.c_str(),
+                                         curr_aop.name.c_str());
+
+      ExtendExtents(last_aop.op.mutable_src_extents(),
+                    curr_aop.op.src_extents());
+      if (curr_aop.op.src_length() > 0)
+        last_aop.op.set_src_length(last_aop.op.src_length() +
+                                   curr_aop.op.src_length());
+      ExtendExtents(last_aop.op.mutable_dst_extents(),
+                    curr_aop.op.dst_extents());
+      if (curr_aop.op.dst_length() > 0)
+        last_aop.op.set_dst_length(last_aop.op.dst_length() +
+                                   curr_aop.op.dst_length());
+      // Set the data length to zero so we know to add the blob later.
+      if (curr_aop.op.type() ==
+          DeltaArchiveManifest_InstallOperation_Type_REPLACE ||
+          curr_aop.op.type() ==
+          DeltaArchiveManifest_InstallOperation_Type_REPLACE_BZ) {
+        last_aop.op.set_data_length(0);
+      }
+    } else {
+      // Otherwise just include the extent as is.
+      new_aops.push_back(curr_aop);
+    }
+  }
+
+  // Set the blobs for REPLACE/REPLACE_BZ operations that have been merged.
+  for (AnnotatedOperation& curr_aop : new_aops) {
+    if (curr_aop.op.data_length() == 0 &&
+        (curr_aop.op.type() ==
+            DeltaArchiveManifest_InstallOperation_Type_REPLACE ||
+         curr_aop.op.type() ==
+            DeltaArchiveManifest_InstallOperation_Type_REPLACE_BZ)) {
+      chromeos::Blob data(curr_aop.op.dst_length());
+      vector<Extent> dst_extents;
+      ExtentsToVector(curr_aop.op.dst_extents(), &dst_extents);
+      TEST_AND_RETURN_FALSE(utils::ReadExtents(target_part_path,
+                                               dst_extents,
+                                               &data,
+                                               data.size(),
+                                               kBlockSize));
+      if (curr_aop.op.type() ==
+          DeltaArchiveManifest_InstallOperation_Type_REPLACE) {
+        curr_aop.SetOperationBlob(&data, data_fd, data_file_size);
+      } else if (curr_aop.op.type() ==
+          DeltaArchiveManifest_InstallOperation_Type_REPLACE_BZ) {
+        chromeos::Blob data_bz;
+        TEST_AND_RETURN_FALSE(BzipCompress(data, &data_bz));
+        curr_aop.SetOperationBlob(&data_bz, data_fd, data_file_size);
+      }
+    }
+  }
+
+  *aops = new_aops;
+  return true;
+}
+
+void DeltaDiffGenerator::ExtendExtents(
+    google::protobuf::RepeatedPtrField<Extent>* extents,
+    const google::protobuf::RepeatedPtrField<Extent>& extents_to_add) {
+  vector<Extent> extents_vector;
+  vector<Extent> extents_to_add_vector;
+  ExtentsToVector(*extents, &extents_vector);
+  ExtentsToVector(extents_to_add, &extents_to_add_vector);
+  extents_vector.insert(extents_vector.end(),
+                        extents_to_add_vector.begin(),
+                        extents_to_add_vector.end());
+  NormalizeExtents(&extents_vector);
+  extents->Clear();
+  StoreExtents(extents_vector, extents);
+}
+
 };  // namespace chromeos_update_engine
diff --git a/payload_generator/delta_diff_generator.h b/payload_generator/delta_diff_generator.h
index 5aa506c..db72e70 100644
--- a/payload_generator/delta_diff_generator.h
+++ b/payload_generator/delta_diff_generator.h
@@ -161,6 +161,11 @@
   static void StoreExtents(const std::vector<Extent>& extents,
                            google::protobuf::RepeatedPtrField<Extent>* out);
 
+  // Stores all extents in |extents| into |out_vector|.
+  static void ExtentsToVector(
+    const google::protobuf::RepeatedPtrField<Extent>& extents,
+    std::vector<Extent>* out_vector);
+
   // Install operations in the manifest may reference data blobs, which
   // are in data_blobs_path. This function creates a new data blobs file
   // with the data blobs in the same order as the referencing install
@@ -270,10 +275,28 @@
   // one dst extent each.
   static bool SplitReplaceBz(const AnnotatedOperation& original_aop,
                              std::vector<AnnotatedOperation>* result_aops,
-                             const std::string& target_rootfs_part,
+                             const std::string& target_part,
                              int data_fd,
                              off_t* data_file_size);
 
+  // Takes a sorted (by first destination extent) vector of operations |aops|
+  // and merges SOURCE_COPY, REPLACE, and REPLACE_BZ operations in that vector.
+  // It will merge two operations if:
+  //   - They are of the same type.
+  //   - They are contiguous.
+  //   - Their combined blocks do not exceed |chunk_size|.
+  static bool MergeOperations(std::vector<AnnotatedOperation>* aops,
+                              off_t chunk_size,
+                              const std::string& target_part,
+                              int data_fd,
+                              off_t* data_file_size);
+
+  // Takes a pointer to extents |extents| and extents |extents_to_add|, and
+  // merges them by adding |extents_to_add| to |extents| and normalizing.
+  static void ExtendExtents(
+    google::protobuf::RepeatedPtrField<Extent>* extents,
+    const google::protobuf::RepeatedPtrField<Extent>& extents_to_add);
+
  private:
   DISALLOW_COPY_AND_ASSIGN(DeltaDiffGenerator);
 };
diff --git a/payload_generator/delta_diff_generator_unittest.cc b/payload_generator/delta_diff_generator_unittest.cc
index d62a4de..77e0193 100644
--- a/payload_generator/delta_diff_generator_unittest.cc
+++ b/payload_generator/delta_diff_generator_unittest.cc
@@ -110,6 +110,10 @@
   }
 }
 
+bool ExtentEquals(Extent ext, uint64_t start_block, uint64_t num_blocks) {
+  return ext.start_block() == start_block && ext.num_blocks() == num_blocks;
+}
+
 }  // namespace
 
 class DeltaDiffGeneratorTest : public ::testing::Test {
@@ -955,8 +959,7 @@
             first_op.type());
   EXPECT_EQ(2 * kBlockSize, first_op.dst_length());
   EXPECT_EQ(1, first_op.dst_extents().size());
-  EXPECT_EQ(2, first_op.dst_extents(0).start_block());
-  EXPECT_EQ(2, first_op.dst_extents(0).num_blocks());
+  EXPECT_TRUE(ExtentEquals(first_op.dst_extents(0), 2, 2));
   // Get the blob corresponding to this extent and compress it.
   chromeos::Blob first_blob(data.begin() + (kBlockSize * 2),
                             data.begin() + (kBlockSize * 4));
@@ -981,8 +984,7 @@
             second_op.type());
   EXPECT_EQ(kBlockSize, second_op.dst_length());
   EXPECT_EQ(1, second_op.dst_extents().size());
-  EXPECT_EQ(6, second_op.dst_extents(0).start_block());
-  EXPECT_EQ(1, second_op.dst_extents(0).num_blocks());
+  EXPECT_TRUE(ExtentEquals(second_op.dst_extents(0), 6, 1));
   chromeos::Blob second_blob(data.begin() + (kBlockSize * 6),
                              data.begin() + (kBlockSize * 7));
   chromeos::Blob second_blob_bz;
@@ -1034,5 +1036,278 @@
   EXPECT_EQ(second_aop.name, aops[2].name);
 }
 
+TEST_F(DeltaDiffGeneratorTest, MergeSourceCopyOperationsTest) {
+  vector<AnnotatedOperation> aops;
+  DeltaArchiveManifest_InstallOperation first_op;
+  first_op.set_type(DeltaArchiveManifest_InstallOperation_Type_SOURCE_COPY);
+  first_op.set_src_length(kBlockSize);
+  first_op.set_dst_length(kBlockSize);
+  *(first_op.add_src_extents()) = ExtentForRange(1, 1);
+  *(first_op.add_dst_extents()) = ExtentForRange(6, 1);
+  AnnotatedOperation first_aop;
+  first_aop.op = first_op;
+  first_aop.name = "1";
+  aops.push_back(first_aop);
+
+  DeltaArchiveManifest_InstallOperation second_op;
+  second_op.set_type(DeltaArchiveManifest_InstallOperation_Type_SOURCE_COPY);
+  second_op.set_src_length(3 * kBlockSize);
+  second_op.set_dst_length(3 * kBlockSize);
+  *(second_op.add_src_extents()) = ExtentForRange(2, 2);
+  *(second_op.add_src_extents()) = ExtentForRange(8, 2);
+  *(second_op.add_dst_extents()) = ExtentForRange(7, 3);
+  *(second_op.add_dst_extents()) = ExtentForRange(11, 1);
+  AnnotatedOperation second_aop;
+  second_aop.op = second_op;
+  second_aop.name = "2";
+  aops.push_back(second_aop);
+
+  DeltaArchiveManifest_InstallOperation third_op;
+  third_op.set_type(DeltaArchiveManifest_InstallOperation_Type_SOURCE_COPY);
+  third_op.set_src_length(kBlockSize);
+  third_op.set_dst_length(kBlockSize);
+  *(third_op.add_src_extents()) = ExtentForRange(11, 1);
+  *(third_op.add_dst_extents()) = ExtentForRange(12, 1);
+  AnnotatedOperation third_aop;
+  third_aop.op = third_op;
+  third_aop.name = "3";
+  aops.push_back(third_aop);
+
+  EXPECT_TRUE(DeltaDiffGenerator::MergeOperations(
+      &aops, 5 * kBlockSize, "", 0, nullptr));
+
+  EXPECT_EQ(aops.size(), 1);
+  DeltaArchiveManifest_InstallOperation first_result_op = aops[0].op;
+  EXPECT_EQ(DeltaArchiveManifest_InstallOperation_Type_SOURCE_COPY,
+            first_result_op.type());
+  EXPECT_EQ(kBlockSize * 5, first_result_op.src_length());
+  EXPECT_EQ(3, first_result_op.src_extents().size());
+  EXPECT_TRUE(ExtentEquals(first_result_op.src_extents(0), 1, 3));
+  EXPECT_TRUE(ExtentEquals(first_result_op.src_extents(1), 8, 2));
+  EXPECT_TRUE(ExtentEquals(first_result_op.src_extents(2), 11, 1));
+  EXPECT_EQ(kBlockSize * 5, first_result_op.dst_length());
+  EXPECT_EQ(2, first_result_op.dst_extents().size());
+  EXPECT_TRUE(ExtentEquals(first_result_op.dst_extents(0), 6, 4));
+  EXPECT_TRUE(ExtentEquals(first_result_op.dst_extents(1), 11, 2));
+  EXPECT_EQ(aops[0].name, "1,2,3");
+}
+
+TEST_F(DeltaDiffGeneratorTest, MergeReplaceOperationsTest) {
+  string data_path;
+  EXPECT_TRUE(utils::MakeTempFile(
+      "MergeReplaceTest_data.XXXXXX", &data_path, nullptr));
+  int data_fd = open(data_path.c_str(), O_RDWR, 000);
+  EXPECT_GE(data_fd, 0);
+  ScopedFdCloser data_fd_closer(&data_fd);
+  chromeos::Blob original_data(4 * kBlockSize);
+  test_utils::FillWithData(&original_data);
+  EXPECT_TRUE(utils::WriteFile(
+      data_path.c_str(), original_data.data(), original_data.size()));
+  off_t data_file_size = 4 * kBlockSize;
+
+  string part_path;
+  EXPECT_TRUE(utils::MakeTempFile(
+      "MergeReplaceBzTest_part.XXXXXX", &part_path, nullptr));
+  chromeos::Blob part_data(4 * kBlockSize);
+  test_utils::FillWithData(&part_data);
+  EXPECT_TRUE(utils::WriteFile(
+      part_path.c_str(), part_data.data(), part_data.size()));
+
+  vector<AnnotatedOperation> aops;
+  DeltaArchiveManifest_InstallOperation first_op;
+  first_op.set_type(DeltaArchiveManifest_InstallOperation_Type_REPLACE);
+  first_op.set_dst_length(kBlockSize);
+  first_op.set_data_length(kBlockSize);
+  first_op.set_data_offset(0);
+  *(first_op.add_dst_extents()) = ExtentForRange(0, 1);
+  AnnotatedOperation first_aop;
+  first_aop.op = first_op;
+  first_aop.name = "first";
+  aops.push_back(first_aop);
+
+  DeltaArchiveManifest_InstallOperation second_op;
+  second_op.set_type(DeltaArchiveManifest_InstallOperation_Type_REPLACE);
+  second_op.set_dst_length(3 * kBlockSize);
+  second_op.set_data_length(3 * kBlockSize);
+  second_op.set_data_offset(1 * kBlockSize);
+  *(second_op.add_dst_extents()) = ExtentForRange(1, 3);
+  AnnotatedOperation second_aop;
+  second_aop.op = second_op;
+  second_aop.name = "second";
+  aops.push_back(second_aop);
+
+  EXPECT_TRUE(DeltaDiffGenerator::MergeOperations(
+      &aops, 5 * kBlockSize, part_path, data_fd, &data_file_size));
+
+  EXPECT_EQ(aops.size(), 1);
+  DeltaArchiveManifest_InstallOperation first_result_op = aops[0].op;
+  EXPECT_EQ(DeltaArchiveManifest_InstallOperation_Type_REPLACE,
+            first_result_op.type());
+  EXPECT_FALSE(first_result_op.has_src_length());
+  EXPECT_EQ(kBlockSize * 4, first_result_op.dst_length());
+  EXPECT_EQ(1, first_result_op.dst_extents().size());
+  EXPECT_TRUE(ExtentEquals(first_result_op.dst_extents(0), 0, 4));
+  EXPECT_EQ(4 * kBlockSize, first_result_op.data_length());
+  EXPECT_EQ(4 * kBlockSize, first_result_op.data_offset());
+  EXPECT_EQ(aops[0].name, "first,second");
+
+  // Check to see if the blob in the new extent has what we expect.
+  chromeos::Blob target_data(first_result_op.data_length());
+  ssize_t bytes_read;
+  EXPECT_TRUE(utils::PReadAll(data_fd,
+                              target_data.data(),
+                              first_result_op.data_length(),
+                              first_result_op.data_offset(),
+                              &bytes_read));
+  chromeos::Blob first_original_blob(part_data.begin(),
+                                     part_data.begin() + kBlockSize);
+  chromeos::Blob first_new_blob(target_data.begin(),
+                                target_data.begin() + kBlockSize);
+  EXPECT_EQ(first_original_blob, first_new_blob);
+
+  chromeos::Blob second_original_blob(part_data.begin() + kBlockSize,
+                                      part_data.begin() + (4 * kBlockSize));
+  chromeos::Blob second_new_blob(target_data.begin() + kBlockSize,
+                                 target_data.end());
+  EXPECT_EQ(second_original_blob, second_new_blob);
+  EXPECT_EQ(data_file_size, 8 * kBlockSize);
+}
+
+TEST_F(DeltaDiffGeneratorTest, MergeReplaceBzOperationsTest) {
+  string data_path;
+  EXPECT_TRUE(utils::MakeTempFile(
+      "MergeReplaceBzTest_data.XXXXXX", &data_path, nullptr));
+  int data_fd = open(data_path.c_str(), O_RDWR, 000);
+  EXPECT_GE(data_fd, 0);
+  ScopedFdCloser data_fd_closer(&data_fd);
+  off_t data_file_size = 0;
+
+  string part_path;
+  EXPECT_TRUE(utils::MakeTempFile(
+      "MergeReplaceBzTest_part.XXXXXX", &part_path, nullptr));
+  chromeos::Blob part_data(3 * kBlockSize);
+  test_utils::FillWithData(&part_data);
+  EXPECT_TRUE(utils::WriteFile(
+      part_path.c_str(), part_data.data(), part_data.size()));
+
+  vector<AnnotatedOperation> aops;
+  DeltaArchiveManifest_InstallOperation first_op;
+  first_op.set_type(DeltaArchiveManifest_InstallOperation_Type_REPLACE_BZ);
+  first_op.set_dst_length(kBlockSize);
+  *(first_op.add_dst_extents()) = ExtentForRange(0, 1);
+  chromeos::Blob first_op_blob(part_data.begin(),
+                               part_data.begin() + kBlockSize);
+  chromeos::Blob first_op_bz;
+  EXPECT_TRUE(BzipCompress(first_op_blob, &first_op_bz));
+  first_op.set_data_length(first_op_bz.size());
+  AnnotatedOperation first_aop;
+  first_aop.op = first_op;
+  first_aop.name = "first";
+  aops.push_back(first_aop);
+
+  DeltaArchiveManifest_InstallOperation second_op;
+  second_op.set_type(DeltaArchiveManifest_InstallOperation_Type_REPLACE_BZ);
+  second_op.set_dst_length(2 * kBlockSize);
+  *(second_op.add_dst_extents()) = ExtentForRange(1, 2);
+  chromeos::Blob second_op_blob(part_data.begin() + kBlockSize,
+                                part_data.end());
+  chromeos::Blob second_op_bz;
+  EXPECT_TRUE(BzipCompress(second_op_blob, &second_op_bz));
+  second_op.set_data_length(second_op_bz.size());
+  AnnotatedOperation second_aop;
+  second_aop.op = second_op;
+  second_aop.name = "second";
+  aops.push_back(second_aop);
+
+  EXPECT_TRUE(DeltaDiffGenerator::MergeOperations(
+      &aops, 5 * kBlockSize, part_path, data_fd, &data_file_size));
+
+  EXPECT_EQ(aops.size(), 1);
+  DeltaArchiveManifest_InstallOperation result_op = aops[0].op;
+  EXPECT_EQ(DeltaArchiveManifest_InstallOperation_Type_REPLACE_BZ,
+            result_op.type());
+  EXPECT_FALSE(result_op.has_src_length());
+  EXPECT_EQ(kBlockSize * 3, result_op.dst_length());
+  EXPECT_EQ(1, result_op.dst_extents().size());
+  EXPECT_TRUE(ExtentEquals(result_op.dst_extents(0), 0, 3));
+  EXPECT_EQ(aops[0].name, "first,second");
+
+  // Check to see if the blob pointed to in the new extent has what we expect.
+  chromeos::Blob part_data_bz;
+  EXPECT_TRUE(BzipCompress(part_data, &part_data_bz));
+  chromeos::Blob result_data_bz(part_data_bz.size());
+  ssize_t bytes_read;
+  EXPECT_TRUE(utils::PReadAll(data_fd,
+                              result_data_bz.data(),
+                              result_op.data_length(),
+                              result_op.data_offset(),
+                              &bytes_read));
+  EXPECT_EQ(part_data_bz, result_data_bz);
+  EXPECT_EQ(result_data_bz.size(), result_op.data_length());
+  EXPECT_EQ(0, result_op.data_offset());
+  EXPECT_EQ(data_file_size, part_data_bz.size());
+}
+
+TEST_F(DeltaDiffGeneratorTest, NoMergeOperationsTest) {
+  // Test to make sure we don't merge operations that shouldn't be merged.
+  vector<AnnotatedOperation> aops;
+  DeltaArchiveManifest_InstallOperation first_op;
+  first_op.set_type(DeltaArchiveManifest_InstallOperation_Type_REPLACE_BZ);
+  *(first_op.add_dst_extents()) = ExtentForRange(0, 1);
+  first_op.set_data_length(kBlockSize);
+  AnnotatedOperation first_aop;
+  first_aop.op = first_op;
+  aops.push_back(first_aop);
+
+  // Should merge with first, except op types don't match...
+  DeltaArchiveManifest_InstallOperation second_op;
+  second_op.set_type(DeltaArchiveManifest_InstallOperation_Type_REPLACE);
+  *(second_op.add_dst_extents()) = ExtentForRange(1, 2);
+  second_op.set_data_length(2 * kBlockSize);
+  AnnotatedOperation second_aop;
+  second_aop.op = second_op;
+  aops.push_back(second_aop);
+
+  // Should merge with second, except it would exceed chunk size...
+  DeltaArchiveManifest_InstallOperation third_op;
+  third_op.set_type(DeltaArchiveManifest_InstallOperation_Type_REPLACE);
+  *(third_op.add_dst_extents()) = ExtentForRange(3, 3);
+  third_op.set_data_length(3 * kBlockSize);
+  AnnotatedOperation third_aop;
+  third_aop.op = third_op;
+  aops.push_back(third_aop);
+
+  // Should merge with third, except they aren't contiguous...
+  DeltaArchiveManifest_InstallOperation fourth_op;
+  fourth_op.set_type(DeltaArchiveManifest_InstallOperation_Type_REPLACE);
+  *(fourth_op.add_dst_extents()) = ExtentForRange(7, 2);
+  fourth_op.set_data_length(2 * kBlockSize);
+  AnnotatedOperation fourth_aop;
+  fourth_aop.op = fourth_op;
+  aops.push_back(fourth_aop);
+
+  EXPECT_TRUE(DeltaDiffGenerator::MergeOperations(&aops, 4 * kBlockSize,
+                                                  "", 0, nullptr));
+
+  // No operations were merged, the number of ops is the same.
+  EXPECT_EQ(aops.size(), 4);
+}
+
+TEST_F(DeltaDiffGeneratorTest, ExtendExtentsTest) {
+  DeltaArchiveManifest_InstallOperation first_op;
+  *(first_op.add_src_extents()) = ExtentForRange(1, 1);
+  *(first_op.add_src_extents()) = ExtentForRange(3, 1);
+
+  DeltaArchiveManifest_InstallOperation second_op;
+  *(second_op.add_src_extents()) = ExtentForRange(4, 2);
+  *(second_op.add_src_extents()) = ExtentForRange(8, 2);
+
+  DeltaDiffGenerator::ExtendExtents(first_op.mutable_src_extents(),
+                                    second_op.src_extents());
+  EXPECT_EQ(first_op.src_extents_size(), 3);
+  EXPECT_TRUE(ExtentEquals(first_op.src_extents(0), 1, 1));
+  EXPECT_TRUE(ExtentEquals(first_op.src_extents(1), 3, 3));
+  EXPECT_TRUE(ExtentEquals(first_op.src_extents(2), 8, 2));
+}
 
 }  // namespace chromeos_update_engine