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

Steps:

  1. Download cwdiff, a shell script, which wraps wdiff to support directories and colorizes the output.

  2. Enable ExtdiffExtension (in ~/.hgrc): 

  [extensions]
  hgext.extdiff =
  1. Add wdiff command (in ~/.hgrc): 

  [extdiff]
  cmd.wdiff = wdiff
  #add --no-color below, if you dislike colors!
  opts.wdiff = --diff --ab
  1. Run 

$ hg wdiff