diff --git a/src/utils/diff-utils.ts b/src/utils/diff-utils.ts
index 0ff2a406..da92c5a3 100644
--- a/src/utils/diff-utils.ts
+++ b/src/utils/diff-utils.ts
@@ -39,63 +39,127 @@ export function parsePatch(patch: string): Hunk[] {
  * from the original content that are changed.
  * @param diff Diff expressed in GNU diff format.
  * @returns Map<string, Hunk[]>
+ * ToDO: Need to Handle Distant Changes with some proximity threshold number
  */
 export function parseAllHunks(diff: string): Map<string, Hunk[]> {
   const hunksByFile: Map<string, Hunk[]> = new Map();
   parseDiff(diff).forEach(file => {
     const filename = file.to ? file.to : file.from!;
-    const chunks = file.chunks.map(chunk => {
-      let oldStart = chunk.oldStart;
-      let newStart = chunk.newStart;
-      let normalLines = 0;
-      let changeSeen = false;
-      const newLines: string[] = [];
-      let previousLine: string | null = null;
-      let nextLine: string | null = null;
-
+    const hunks: Hunk[] = [];
+    file.chunks.forEach(chunk => {
+      // Track different types of lines
+      const allAddedLines: {ln: number; content: string}[] = [];
+      const allDeletedLines: {ln: number; content: string}[] = [];
+      const allNormalLines: {ln: number; lnNew: number; content: string}[] = [];
+      // First pass: collect all changes by type
       chunk.changes.forEach(change => {
-        // strip off leading '+', '-', or ' ' and trailing carriage return
+        if (change.content.includes('No newline at end of file')) {
+          return;
+        }
         const content = change.content.substring(1).replace(/[\n\r]+$/g, '');
-        if (change.type === 'normal') {
-          normalLines++;
-          if (changeSeen) {
-            if (nextLine === null) {
-              nextLine = content;
-            }
-          } else {
-            previousLine = content;
-          }
-        } else {
-          if (change.type === 'add') {
-            // strip off leading '+' and trailing carriage return
-            newLines.push(content);
-          }
-          if (!changeSeen) {
-            oldStart += normalLines;
-            newStart += normalLines;
-            changeSeen = true;
-          }
+
+        if (change.type === 'add') {
+          allAddedLines.push({
+            ln: (change as any).ln || 0,
+            content: content,
+          });
+        } else if (change.type === 'del') {
+          allDeletedLines.push({
+            ln: (change as any).ln || 0,
+            content: content,
+          });
+        } else if (change.type === 'normal') {
+          allNormalLines.push({
+            ln: (change as any).ln1 || 0,
+            lnNew: (change as any).ln2 || 0, // New file line number
+            content: content,
+          });
         }
       });
-      const newEnd = newStart + chunk.newLines - normalLines - 1;
-      const oldEnd = oldStart + chunk.oldLines - normalLines - 1;
-      let hunk: Hunk = {
-        oldStart: oldStart,
-        oldEnd: oldEnd,
-        newStart: newStart,
-        newEnd: newEnd,
-        newContent: newLines,
-      };
-      if (previousLine) {
-        hunk = {...hunk, previousLine: previousLine};
-      }
-      if (nextLine) {
-        hunk = {...hunk, nextLine: nextLine};
+      // If no modifications, skip
+      if (allAddedLines.length === 0 && allDeletedLines.length === 0) return;
+
+      // Sort lines by line number as ParseDiff does not guarantee order
+      allAddedLines.sort((a, b) => a.ln - b.ln);
+      allDeletedLines.sort((a, b) => a.ln - b.ln);
+      allNormalLines.sort((a, b) => a.ln - b.ln);
+
+      // Identify the range to replace
+      let startLineToReplace: number;
+      let endLineToReplace: number;
+      if (allDeletedLines.length > 0) {
+        // If there are deletions, start with their range
+        const lastDelLine = allDeletedLines[allDeletedLines.length - 1].ln;
+        const lastAddedLine =
+          allAddedLines.length > 0
+            ? Math.max(...allAddedLines.map(a => a.ln))
+            : -1;
+
+        // Find neutral lines between additions and deletions
+        // Find the full change range
+        const allChangeLines = [...allAddedLines, ...allDeletedLines];
+        const earliestChangeLine = Math.min(
+          ...allChangeLines.map(line => line.ln)
+        );
+
+        // Include all normal lines that fall within this range
+        const relevantNormalLines = allNormalLines.filter(
+          normal =>
+            normal.ln >= earliestChangeLine &&
+            (normal.ln < lastDelLine || normal.lnNew < lastAddedLine)
+        );
+        // Calculate the full replacement range including relevant normal lines
+        const allRelevantLines = [...allDeletedLines, ...relevantNormalLines];
+        startLineToReplace = Math.min(...allRelevantLines.map(line => line.ln));
+        endLineToReplace = Math.max(...allRelevantLines.map(line => line.ln));
+      } else {
+        // Pure additions (no deletions)
+        // Use the first added line as the insertion point
+        startLineToReplace = allAddedLines[0].ln;
+        endLineToReplace = startLineToReplace;
       }
-      return hunk;
+      // Now build the new content
+      const newContent: string[] = [];
+
+      // Normal processing: include additions and normal lines in the right order
+      const linesToInclude: {ln: number; content: string}[] = [];
+
+      // Add all the additions to our map
+      allAddedLines.forEach(line => {
+        linesToInclude.push({ln: line.ln, content: line.content});
+      });
+      // Add relevant normal lines that should be preserved
+      allNormalLines.forEach(line => {
+        // Only include normal lines within our replacement range if they haven't been replaced by additions
+        if (line.ln >= startLineToReplace && line.ln <= endLineToReplace) {
+          linesToInclude.push({ln: line.lnNew, content: line.content});
+        }
+      });
+
+      // Order the lines and build the final content
+      linesToInclude
+        .sort((a, b) => a.ln - b.ln)
+        .forEach(line => {
+          newContent.push(line.content);
+        });
+
+      // Create the hunk with the replacement range
+      const hunk: Hunk = {
+        oldStart: startLineToReplace,
+        oldEnd: endLineToReplace,
+        newStart: startLineToReplace,
+        newEnd: startLineToReplace + newContent.length - 1,
+        newContent,
+      };
+
+      hunks.push(hunk);
     });
-    hunksByFile.set(filename, chunks);
+
+    if (hunks.length > 0) {
+      hunksByFile.set(filename, hunks);
+    }
   });
+
   return hunksByFile;
 }