diff --git a/usr.bin/diff3/diff3.c b/usr.bin/diff3/diff3.c
index c72ea0747589..3b07ced4705b 100644
--- a/usr.bin/diff3/diff3.c
+++ b/usr.bin/diff3/diff3.c
@@ -79,6 +79,7 @@
 #include <string.h>
 #include <unistd.h>
 
+#define DEBUG 1
 
 /*
  * "from" is first in range of changed lines; "to" is last+1
@@ -90,6 +91,7 @@ struct range {
 };
 
 struct diff {
+#define DIFF_TYPE1 1
 #define DIFF_TYPE2 2
 #define DIFF_TYPE3 3
 	int type;
@@ -182,6 +184,20 @@ static struct option longopts[] = {
 	{ "version",		no_argument,		NULL,	VERSION_OPT}
 };
 
+#if DEBUG
+static void
+printdiff(struct diff *d)
+{
+	fprintf(stderr, "type %s old (%d->%d) new (%d->%d) line: %s",
+		d->type == DIFF_TYPE1 ? "TYPE1" : (
+			d->type == DIFF_TYPE2 ? "TYPE2" : "TYPE3"),
+		d->old.from, d->old.to,
+		d->new.from, d->new.to, d->line);
+}
+#else
+#define printdiff(unused)
+#endif	/* DEBUG */
+
 static void
 usage(void)
 {
@@ -314,6 +330,9 @@ merge(int m1, int m2)
 				change(1, &d1->old, false);
 				keep(2, &d1->new);
 				change(3, &d1->new, false);
+			} else if (eflag == EFLAG_OVERLAP) {
+				j = edit(d2, dup, j, DIFF_TYPE1);
+				printdiff(d2);
 			}
 			d1++;
 			continue;
@@ -552,6 +571,9 @@ edit(struct diff *diff, bool dup, int j, int difftype)
 static void
 printrange(FILE *p, struct range *r)
 {
+#if DEBUG
+	fprintf(stderr, "%s:\tfrom %d to %d\n", __func__, r->from, r->to);
+#endif
 	char *line = NULL;
 	size_t len = 0;
 	int i = 1;
@@ -591,20 +613,31 @@ edscript(int n)
 		old = &de[n].old;
 
 		delete = (new->from == new->to);
-		if (!oflag || !overlap[n]) {
-			prange(old, delete);
-		} else {
-			printf("%da\n", old->to - 1);
-			printf("%s\n", divider);
-		}
-		printrange(fp[2], new);
-		if (!oflag || !overlap[n]) {
-			if (!delete)
+		if (de[n].type == DIFF_TYPE1) {
+			if (delete)
+				printf("%dd\n", new->from - 1);
+			else if (old->from == new->from && old->to == new->to) {
+				printf("%dc\n", old->from);
+				printrange(fp[2], old);
 				printf(".\n");
+			}
+			continue;
 		} else {
-			printf("%s %s\n.\n", newmark, f3mark);
-			printf("%da\n%s %s\n.\n", old->from - 1,
-				oldmark, f1mark);
+			if (!oflag || !overlap[n]) {
+				prange(old, delete);
+			} else {
+				printf("%da\n", old->to - 1);
+				printf("%s\n", divider);
+			}
+			printrange(fp[2], new);
+			if (!oflag || !overlap[n]) {
+				if (!delete)
+					printf(".\n");
+			} else {
+				printf("%s %s\n.\n", newmark, f3mark);
+				printf("%da\n%s %s\n.\n", old->from - 1,
+					oldmark, f1mark);
+			}
 		}
 	}
 	if (iflag)
@@ -709,27 +742,51 @@ Ascript(int n)
 static void
 mergescript(int i)
 {
+
 	struct range r, *new, *old;
 	int n;
+	bool delete = false;
 
 	r.from = 1;
 	r.to = 1;
 
 	for (n = 1; n < i+1; n++) {
+		printdiff(&de[n]);
 		new = &de[n].new;
 		old = &de[n].old;
 
-		/* print any lines leading up to here */
-		r.to = old->from;
-		printrange(fp[0], &r);
+		/*
+		 * Print any lines leading up to here. If we are merging don't
+		 * print deleted ranges.
+		 */
+		delete = (new->from == new->to);
+		if (de[n].type == DIFF_TYPE1 && delete)
+			r.to = new->from - 1;
+		else if (de[n].type == DIFF_TYPE3 && (old->from == old->to)) {
+			r.from = old->from - 1;
+			r.to = new->from;
+		} else
+			r.to = old->from;
 
-		if (de[n].type == DIFF_TYPE2) {
+		printrange(fp[0], &r);
+#if DEBUG
+fprintf(stderr, "end of prologue\n");
+#endif
+		switch (de[n].type) {
+		case DIFF_TYPE1:
+			/* If this isn't a delete print it */
+			if (!delete) {
+				printrange(fp[2], new);
+			}
+			break;
+		case DIFF_TYPE2:
 			printf("%s %s\n", oldmark, f2mark);
 			printrange(fp[1], old);
 			printf("%s\n", divider);
 			printrange(fp[2], new);
 			printf("%s %s\n", newmark, f3mark);
-		} else if (de[n].type == DIFF_TYPE3) {
+			break;
+		case DIFF_TYPE3:
 			if (!oflag || !overlap[n]) {
 				printrange(fp[2], new);
 			} else {
@@ -737,20 +794,27 @@ mergescript(int i)
 				printf("%s %s\n", oldmark, f1mark);
 				printrange(fp[0], old);
 
-				printf("%s %s\n", orgmark, f2mark);
-				if (old->from == old->to) {
-					struct range or;
-					or.from = old->from - 1;
-					or.to = new->to;
-					printrange(fp[1], &or);
-				} else
-					printrange(fp[1], old);
+				if (eflag != EFLAG_OVERLAP) {
+					printf("%s %s\n", orgmark, f2mark);
+					if (old->from == old->to) {
+						struct range or;
+						or.from = old->from - 1;
+						or.to = new->to;
+						printrange(fp[1], &or);
+					} else {
+						printrange(fp[1], old);
+					}
+				}
 
 				printf("%s\n", divider);
 
 				printrange(fp[2], new);
 				printf("%s %s\n", newmark, f3mark);
 			}
+			break;
+		default:
+			printf("Error: Unhandled diff type - exiting\n");
+			exit(EXIT_FAILURE);
 		}
 
 		if (old->from == old->to)
@@ -758,6 +822,7 @@ mergescript(int i)
 		else
 			r.from = old->to;
 	}
+
 	/*
 	 * Print from the final range to the end of 'myfile'. Any deletions or
 	 * additions to this file should have been handled by now.
@@ -768,21 +833,15 @@ mergescript(int i)
 	 */
 	new = &de[n-1].new;
 	old = &de[n-1].old;
+
 	if ((old->from == new->from) &&
 		(old->to == new->to))
 		r.from--;
 	else if (new->from == new->to)
 		r.from = old->from;
 
-	/*
-	 * If the range is a 3 way merge then we need to skip a line in the
-	 * trailing output.
-	 */
-	if (de[n-1].type == DIFF_TYPE3)
-		r.from++;
-
 	r.to = INT_MAX;
-	printrange(fp[0], &r);
+	printrange(fp[2], &r);
 	exit(overlapcnt > 0);
 }