diff --git a/app/assets/javascripts/diff.js.coffee b/app/assets/javascripts/diff.js.coffee
index 069f91c30e1027dc4ccca0cf5d10ad9dc9727db7..6d9b364cb8d2e4f7d452202ec4d488c00769feb1 100644
--- a/app/assets/javascripts/diff.js.coffee
+++ b/app/assets/javascripts/diff.js.coffee
@@ -31,6 +31,10 @@ class @Diff
         bottom: unfoldBottom
         offset: offset
         unfold: unfold
+        # indent is used to compensate for single space indent to fit
+        # '+' and '-' prepended to diff lines,
+        # see https://gitlab.com/gitlab-org/gitlab-ce/issues/707
+        indent: 1
 
       $.get(link, params, (response) =>
         target.parent().replaceWith(response)
diff --git a/app/views/projects/blob/diff.html.haml b/app/views/projects/blob/diff.html.haml
index 8474260898610589e9b2ffa12ed9ba2c24b5cd32..f3b01ff3288b1723eecaa8f266eae7111746514c 100644
--- a/app/views/projects/blob/diff.html.haml
+++ b/app/views/projects/blob/diff.html.haml
@@ -11,7 +11,7 @@
       %td.old_line.diff-line-num{data: {linenumber: line_old}}
         = link_to raw(line_old), "#"
       %td.new_line= link_to raw(line_new) , "#"
-      %td.line_content.noteable_line= line
+      %td.line_content.noteable_line= ' ' * @form.indent + line
 
   - if @form.unfold? && @form.bottom? && @form.to < @blob.loc
     %tr.line_holder{ id: @form.to }
diff --git a/lib/unfold_form.rb b/lib/unfold_form.rb
index 46b12beeaaf364bd50c6dff38c43ee33bdbafe88..fcd01503d1b05c22073725c98d9df7642cb8ae03 100644
--- a/lib/unfold_form.rb
+++ b/lib/unfold_form.rb
@@ -8,4 +8,5 @@ class UnfoldForm
   attribute :bottom, Boolean
   attribute :unfold, Boolean, default: true
   attribute :offset, Integer
+  attribute :indent, Integer, default: 0
 end