diff --git a/resources/celerity/map.php b/resources/celerity/map.php
--- a/resources/celerity/map.php
+++ b/resources/celerity/map.php
@@ -11,7 +11,7 @@
     'conpherence.pkg.js' => '020aebcf',
     'core.pkg.css' => '261ee8cf',
     'core.pkg.js' => '5ace8a1e',
-    'differential.pkg.css' => 'b8df73d4',
+    'differential.pkg.css' => 'c3f15714',
     'differential.pkg.js' => '67c9ea4c',
     'diffusion.pkg.css' => '42c75c37',
     'diffusion.pkg.js' => '91192d85',
@@ -61,7 +61,7 @@
     'rsrc/css/application/dashboard/dashboard.css' => '4267d6c6',
     'rsrc/css/application/diff/inline-comment-summary.css' => '81eb368d',
     'rsrc/css/application/differential/add-comment.css' => '7e5900d9',
-    'rsrc/css/application/differential/changeset-view.css' => '73660575',
+    'rsrc/css/application/differential/changeset-view.css' => '783a9206',
     'rsrc/css/application/differential/core.css' => 'bdb93065',
     'rsrc/css/application/differential/phui-inline-comment.css' => '48acce5b',
     'rsrc/css/application/differential/revision-comment.css' => '7dbc8d1d',
@@ -275,6 +275,8 @@
     'rsrc/image/checker_dark.png' => '7fc8fa7b',
     'rsrc/image/checker_light.png' => '3157a202',
     'rsrc/image/checker_lighter.png' => 'c45928c1',
+    'rsrc/image/chevron-in.png' => '1aa2f88f',
+    'rsrc/image/chevron-out.png' => 'c815e272',
     'rsrc/image/controls/checkbox-checked.png' => '1770d7a0',
     'rsrc/image/controls/checkbox-unchecked.png' => 'e1deba0a',
     'rsrc/image/d5d8e1.png' => '6764616e',
@@ -539,7 +541,7 @@
     'conpherence-thread-manager' => 'aec8e38c',
     'conpherence-transaction-css' => '3a3f5e7e',
     'd3' => 'd67475f5',
-    'differential-changeset-view-css' => '73660575',
+    'differential-changeset-view-css' => '783a9206',
     'differential-core-view-css' => 'bdb93065',
     'differential-revision-add-comment-css' => '7e5900d9',
     'differential-revision-comment-css' => '7dbc8d1d',
@@ -1490,9 +1492,6 @@
       'javelin-dom',
       'javelin-uri',
     ),
-    73660575 => array(
-      'phui-inline-comment-view-css',
-    ),
     '73ecc1f8' => array(
       'javelin-behavior',
       'javelin-behavior-device',
@@ -1514,6 +1513,9 @@
       'javelin-uri',
       'javelin-request',
     ),
+    '783a9206' => array(
+      'phui-inline-comment-view-css',
+    ),
     '78bc5d94' => array(
       'javelin-behavior',
       'javelin-uri',
diff --git a/src/applications/celerity/postprocessor/CelerityDefaultPostprocessor.php b/src/applications/celerity/postprocessor/CelerityDefaultPostprocessor.php
--- a/src/applications/celerity/postprocessor/CelerityDefaultPostprocessor.php
+++ b/src/applications/celerity/postprocessor/CelerityDefaultPostprocessor.php
@@ -199,8 +199,10 @@
       'diff.background' => '#fff',
       'new-background' => 'rgba(151, 234, 151, .3)',
       'new-bright' => 'rgba(151, 234, 151, .6)',
+      'new-background-strong' => 'rgba(151, 234, 151, 1)',
       'old-background' => 'rgba(251, 175, 175, .3)',
       'old-bright' => 'rgba(251, 175, 175, .7)',
+      'old-background-strong' => 'rgba(251, 175, 175, 1)',
       'move-background' => '#fdf5d4',
       'copy-background' => '#f1c40f',
 
diff --git a/src/applications/differential/__tests__/data/whitespace.diff.one.whitespace b/src/applications/differential/__tests__/data/whitespace.diff.one.whitespace
--- a/src/applications/differential/__tests__/data/whitespace.diff.one.whitespace
+++ b/src/applications/differential/__tests__/data/whitespace.diff.one.whitespace
@@ -1,2 +1,2 @@
 O 1 - -=[-Rocket-Ship>\n~
-N 1 + {(          )}-=[-Rocket-Ship>\n~
+N 1 + {>          )}-=[-Rocket-Ship>\n~
diff --git a/src/applications/differential/__tests__/data/whitespace.diff.two.whitespace b/src/applications/differential/__tests__/data/whitespace.diff.two.whitespace
--- a/src/applications/differential/__tests__/data/whitespace.diff.two.whitespace
+++ b/src/applications/differential/__tests__/data/whitespace.diff.two.whitespace
@@ -1,2 +1,2 @@
 O 1 - -=[-Rocket-Ship>\n~
-N 1 + {(          )}-=[-Rocket-Ship>\n~
+N 1 + {>          )}-=[-Rocket-Ship>\n~
diff --git a/src/applications/differential/parser/DifferentialChangesetParser.php b/src/applications/differential/parser/DifferentialChangesetParser.php
--- a/src/applications/differential/parser/DifferentialChangesetParser.php
+++ b/src/applications/differential/parser/DifferentialChangesetParser.php
@@ -8,6 +8,7 @@
   protected $new          = array();
   protected $old          = array();
   protected $intra        = array();
+  protected $depthOnlyLines = array();
   protected $newRender    = null;
   protected $oldRender    = null;
 
@@ -190,7 +191,7 @@
     return $this;
   }
 
-  const CACHE_VERSION = 11;
+  const CACHE_VERSION = 12;
   const CACHE_MAX_SIZE = 8e6;
 
   const ATTR_GENERATED  = 'attr:generated';
@@ -224,6 +225,15 @@
     return $this;
   }
 
+  public function setDepthOnlyLines(array $lines) {
+    $this->depthOnlyLines = $lines;
+    return $this;
+  }
+
+  public function getDepthOnlyLines() {
+    return $this->depthOnlyLines;
+  }
+
   public function setVisibileLinesMask(array $mask) {
     $this->visible = $mask;
     return $this;
@@ -450,6 +460,7 @@
       'new',
       'old',
       'intra',
+      'depthOnlyLines',
       'newRender',
       'oldRender',
       'specialAttributes',
@@ -754,6 +765,7 @@
     $this->setOldLines($hunk_parser->getOldLines());
     $this->setNewLines($hunk_parser->getNewLines());
     $this->setIntraLineDiffs($hunk_parser->getIntraLineDiffs());
+    $this->setDepthOnlyLines($hunk_parser->getDepthOnlyLines());
     $this->setVisibileLinesMask($hunk_parser->getVisibleLinesMask());
     $this->hunkStartLines = $hunk_parser->getHunkStartLines(
       $changeset->getHunks());
@@ -914,7 +926,8 @@
       ->setShowEditAndReplyLinks($this->getShowEditAndReplyLinks())
       ->setCanMarkDone($this->getCanMarkDone())
       ->setObjectOwnerPHID($this->getObjectOwnerPHID())
-      ->setHighlightingDisabled($this->highlightingDisabled);
+      ->setHighlightingDisabled($this->highlightingDisabled)
+      ->setDepthOnlyLines($this->getDepthOnlyLines());
 
     $shield = null;
     if ($this->isTopLevel && !$this->comments) {
diff --git a/src/applications/differential/parser/DifferentialHunkParser.php b/src/applications/differential/parser/DifferentialHunkParser.php
--- a/src/applications/differential/parser/DifferentialHunkParser.php
+++ b/src/applications/differential/parser/DifferentialHunkParser.php
@@ -5,6 +5,7 @@
   private $oldLines;
   private $newLines;
   private $intraLineDiffs;
+  private $depthOnlyLines;
   private $visibleLinesMask;
   private $whitespaceMode;
 
@@ -115,6 +116,14 @@
     return $this;
   }
 
+  public function setDepthOnlyLines(array $map) {
+    $this->depthOnlyLines = $map;
+    return $this;
+  }
+
+  public function getDepthOnlyLines() {
+    return $this->depthOnlyLines;
+  }
 
   public function setWhitespaceMode($white_space_mode) {
     $this->whitespaceMode = $white_space_mode;
@@ -334,6 +343,7 @@
     $new = $this->getNewLines();
 
     $diffs = array();
+    $depth_only = array();
     foreach ($old as $key => $o) {
       $n = $new[$key];
 
@@ -342,13 +352,75 @@
       }
 
       if ($o['type'] != $n['type']) {
-        $diffs[$key] = ArcanistDiffUtils::generateIntralineDiff(
-          $o['text'],
-          $n['text']);
+        $o_segments = array();
+        $n_segments = array();
+        $tab_width = 2;
+
+        $o_text = $o['text'];
+        $n_text = $n['text'];
+
+        if ($o_text !== $n_text) {
+          $o_depth = $this->getIndentDepth($o_text, $tab_width);
+          $n_depth = $this->getIndentDepth($n_text, $tab_width);
+
+          if ($o_depth < $n_depth) {
+            $segment_type = '>';
+            $segment_width = $this->getCharacterCountForVisualWhitespace(
+              $n_text,
+              ($n_depth - $o_depth),
+              $tab_width);
+            if ($segment_width) {
+              $n_text = substr($n_text, $segment_width);
+              $n_segments[] = array(
+                $segment_type,
+                $segment_width,
+              );
+            }
+          } else if ($o_depth > $n_depth) {
+            $segment_type = '<';
+            $segment_width = $this->getCharacterCountForVisualWhitespace(
+              $o_text,
+              ($o_depth - $n_depth),
+              $tab_width);
+            if ($segment_width) {
+              $o_text = substr($o_text, $segment_width);
+              $o_segments[] = array(
+                $segment_type,
+                $segment_width,
+              );
+            }
+          }
+
+          // If there are no remaining changes to this line after we've marked
+          // off the indent depth changes, this line was only modified by
+          // changing the indent depth. Mark it for later so we can change how
+          // it is displayed.
+          if ($o_text === $n_text) {
+            $depth_only[$key] = $segment_type;
+          }
+        }
+
+        $intraline_segments = ArcanistDiffUtils::generateIntralineDiff(
+          $o_text,
+          $n_text);
+
+        foreach ($intraline_segments[0] as $o_segment) {
+          $o_segments[] = $o_segment;
+        }
+
+        foreach ($intraline_segments[1] as $n_segment) {
+          $n_segments[] = $n_segment;
+        }
+
+        $diffs[$key] = array(
+          $o_segments,
+          $n_segments,
+        );
       }
     }
 
     $this->setIntraLineDiffs($diffs);
+    $this->setDepthOnlyLines($depth_only);
 
     return $this;
   }
@@ -671,4 +743,97 @@
 
     return $offsets;
   }
+
+  private function getIndentDepth($text, $tab_width) {
+    $len = strlen($text);
+
+    $depth = 0;
+    for ($ii = 0; $ii < $len; $ii++) {
+      $c = $text[$ii];
+
+      // If this is a space, increase the indent depth by 1.
+      if ($c == ' ') {
+        $depth++;
+        continue;
+      }
+
+      // If this is a tab, increase the indent depth to the next tabstop.
+
+      // For example, if the tab width is 4, these sequences both lead us to
+      // a visual width of 8, i.e. the cursor will be in the 8th column:
+      //
+      //   <tab><tab>
+      //   <space><tab><space><space><space><tab>
+
+      if ($c == "\t") {
+        $depth = ($depth + $tab_width);
+        $depth = $depth - ($depth % $tab_width);
+        continue;
+      }
+
+      break;
+    }
+
+    return $depth;
+  }
+
+  private function getCharacterCountForVisualWhitespace(
+    $text,
+    $depth,
+    $tab_width) {
+
+    // Here, we know the visual indent depth of a line has been increased by
+    // some amount (for example, 6 characters).
+
+    // We want to find the largest whitespace prefix of the string we can
+    // which still fits into that amount of visual space.
+
+    // In most cases, this is very easy. For example, if the string has been
+    // indented by two characters and the string begins with two spaces, that's
+    // a perfect match.
+
+    // However, if the string has been indented by 7 characters, the tab width
+    // is 8, and the string begins with "<space><space><tab>", we can only
+    // mark the two spaces as an indent change. These cases are unusual.
+
+    $character_depth = 0;
+    $visual_depth = 0;
+
+    $len = strlen($text);
+    for ($ii = 0; $ii < $len; $ii++) {
+      if ($visual_depth >= $depth) {
+        break;
+      }
+
+      $c = $text[$ii];
+
+      if ($c == ' ') {
+        $character_depth++;
+        $visual_depth++;
+        continue;
+      }
+
+      if ($c == "\t") {
+        // Figure out how many visual spaces we have until the next tabstop.
+        $tab_visual = ($visual_depth + $tab_width);
+        $tab_visual = $tab_visual - ($tab_visual % $tab_width);
+        $tab_visual = ($tab_visual - $visual_depth);
+
+        // If this tab would take us over the limit, we're all done.
+        $remaining_depth = ($depth - $visual_depth);
+        if ($remaining_depth < $tab_visual) {
+          break;
+        }
+
+        $character_depth++;
+        $visual_depth += $tab_visual;
+        continue;
+      }
+
+      break;
+    }
+
+    return $character_depth;
+  }
+
 }
diff --git a/src/applications/differential/render/DifferentialChangesetRenderer.php b/src/applications/differential/render/DifferentialChangesetRenderer.php
--- a/src/applications/differential/render/DifferentialChangesetRenderer.php
+++ b/src/applications/differential/render/DifferentialChangesetRenderer.php
@@ -34,6 +34,7 @@
   private $objectOwnerPHID;
   private $highlightingDisabled;
   private $scopeEngine;
+  private $depthOnlyLines;
 
   private $oldFile = false;
   private $newFile = false;
@@ -92,6 +93,15 @@
     return $this->gaps;
   }
 
+  public function setDepthOnlyLines(array $lines) {
+    $this->depthOnlyLines = $lines;
+    return $this;
+  }
+
+  public function getDepthOnlyLines() {
+    return $this->depthOnlyLines;
+  }
+
   public function attachOldFile(PhabricatorFile $old = null) {
     $this->oldFile = $old;
     return $this;
diff --git a/src/applications/differential/render/DifferentialChangesetTestRenderer.php b/src/applications/differential/render/DifferentialChangesetTestRenderer.php
--- a/src/applications/differential/render/DifferentialChangesetTestRenderer.php
+++ b/src/applications/differential/render/DifferentialChangesetTestRenderer.php
@@ -96,10 +96,14 @@
             array(
               '<span class="bright">',
               '</span>',
+              '<span class="depth-out">',
+              '<span class="depth-in">',
             ),
             array(
               '{(',
               ')}',
+              '{<',
+              '{>',
             ),
             $render);
 
diff --git a/src/applications/differential/render/DifferentialChangesetTwoUpRenderer.php b/src/applications/differential/render/DifferentialChangesetTwoUpRenderer.php
--- a/src/applications/differential/render/DifferentialChangesetTwoUpRenderer.php
+++ b/src/applications/differential/render/DifferentialChangesetTwoUpRenderer.php
@@ -71,8 +71,8 @@
     $mask = $this->getMask();
 
     $scope_engine = $this->getScopeEngine();
-
     $offset_map = null;
+    $depth_only = $this->getDepthOnlyLines();
 
     for ($ii = $range_start; $ii < $range_start + $range_len; $ii++) {
       if (empty($mask[$ii])) {
@@ -196,11 +196,29 @@
           } else if (empty($old_lines[$ii])) {
             $n_class = 'new new-full';
           } else {
-            $n_class = 'new';
+
+            // NOTE: At least for the moment, I'm intentionally clearing the
+            // line highlighting only on the right side of the diff when a
+            // line has only depth changes. When a block depth is decreased,
+            // this gives us a large color block on the left (to make it easy
+            // to see the depth change) but a clean diff on the right (to make
+            // it easy to pick out actual code changes).
+
+            if (isset($depth_only[$ii])) {
+              $n_class = '';
+            } else {
+              $n_class = 'new';
+            }
           }
           $n_classes = $n_class;
 
-          if ($new_lines[$ii]['type'] == '\\' || !isset($copy_lines[$n_num])) {
+          $not_copied =
+            // If this line only changed depth, copy markers are pointless.
+            (!isset($copy_lines[$n_num])) ||
+            (isset($depth_only[$ii])) ||
+            ($new_lines[$ii]['type'] == '\\');
+
+          if ($not_copied) {
             $n_copy = phutil_tag('td', array('class' => "copy {$n_class}"));
           } else {
             list($orig_file, $orig_line, $orig_type) = $copy_lines[$n_num];
diff --git a/webroot/rsrc/css/application/differential/changeset-view.css b/webroot/rsrc/css/application/differential/changeset-view.css
--- a/webroot/rsrc/css/application/differential/changeset-view.css
+++ b/webroot/rsrc/css/application/differential/changeset-view.css
@@ -135,12 +135,33 @@
   background: {$old-bright};
 }
 
+
 .differential-diff td.new span.bright,
 .differential-diff td.new-full,
 .prose-diff span.new {
   background: {$new-bright};
 }
 
+.differential-diff td span.depth-out,
+.differential-diff td span.depth-in {
+  padding: 2px 0;
+  background-size: 12px 12px;
+  background-repeat: no-repeat;
+  background-position: left center;
+}
+
+.differential-diff td span.depth-out {
+  background-image: url(/rsrc/image/chevron-out.png);
+  background-color: {$old-background-strong};
+}
+
+.differential-diff td span.depth-in {
+  background-position: 2px center;
+  background-image: url(/rsrc/image/chevron-in.png);
+  background-color: {$new-background-strong};
+}
+
+
 .differential-diff td.copy {
   min-width: 0.5%;
   width: 0.5%;
diff --git a/webroot/rsrc/image/chevron-in.png b/webroot/rsrc/image/chevron-in.png
new file mode 100644
index 0000000000000000000000000000000000000000..0000000000000000000000000000000000000000
GIT binary patch
literal 0
Hc$@<O00001

literal 0
Hc$@<O00001

diff --git a/webroot/rsrc/image/chevron-out.png b/webroot/rsrc/image/chevron-out.png
new file mode 100644
index 0000000000000000000000000000000000000000..0000000000000000000000000000000000000000
GIT binary patch
literal 0
Hc$@<O00001

literal 0
Hc$@<O00001