diff --git a/NEWS.adoc b/NEWS.adoc
index d6a78f070..15280d6fa 100644
--- a/NEWS.adoc
+++ b/NEWS.adoc
@@ -6,7 +6,7 @@ master
 
 Bug fixes:
 
- - Fix parsing of `--no-prefix` argument.
+ - Fix various issues with `diff.noprefix` and `--no-prefix`.
 
 Improvements:
 
diff --git a/include/tig/git.h b/include/tig/git.h
index 91d140f45..e14c0ba31 100644
--- a/include/tig/git.h
+++ b/include/tig/git.h
@@ -25,14 +25,14 @@
 #define GIT_DIFF_STAGED_INITIAL(encoding_arg, context_arg, space_arg, new_name) \
 	GIT_DIFF_INITIAL(encoding_arg, "--cached", context_arg, space_arg, "", new_name)
 
-#define GIT_DIFF_STAGED(encoding_arg, context_arg, space_arg, word_diff_arg, old_name, new_name) \
+#define GIT_DIFF_STAGED(encoding_arg, context_arg, prefix_arg, space_arg, word_diff_arg, old_name, new_name) \
 	"git", "diff-index", (encoding_arg), "--textconv", "--patch-with-stat", "-C", \
 		"--cached", "--diff-filter=ACDMRTXB", DIFF_ARGS, "%(cmdlineargs)", (context_arg), \
-		(space_arg), (word_diff_arg), "HEAD", "--", (old_name), (new_name), NULL
+		(prefix_arg), (space_arg), (word_diff_arg), "HEAD", "--", (old_name), (new_name), NULL
 
-#define GIT_DIFF_UNSTAGED(encoding_arg, context_arg, space_arg, word_diff_arg, old_name, new_name) \
+#define GIT_DIFF_UNSTAGED(encoding_arg, context_arg, prefix_arg, space_arg, word_diff_arg, old_name, new_name) \
 	"git", "diff-files", (encoding_arg), "--textconv", "--patch-with-stat", "-C", \
-		DIFF_ARGS, "%(cmdlineargs)", (context_arg), (space_arg), (word_diff_arg), \
+		DIFF_ARGS, "%(cmdlineargs)", (context_arg), (prefix_arg), (space_arg), (word_diff_arg), \
 		"--", (old_name), (new_name), NULL
 
 /* Don't show staged unmerged entries. */
@@ -43,9 +43,9 @@
 #define GIT_DIFF_UNSTAGED_FILES(output_arg) \
 	"git", "diff-files", (output_arg), "%(cmdlineargs)", NULL
 
-#define GIT_DIFF_BLAME(encoding_arg, context_arg, space_arg, word_diff_arg, new_name) \
+#define GIT_DIFF_BLAME(encoding_arg, context_arg, prefix_arg, space_arg, word_diff_arg, new_name) \
 	"git", "diff-files", (encoding_arg), "--textconv", "--patch-with-stat", "-C", \
-		(context_arg), (space_arg), (word_diff_arg), "--", (new_name), NULL
+		(context_arg), (prefix_arg), (space_arg), (word_diff_arg), "--", (new_name), NULL
 
 #define GIT_DIFF_BLAME_NO_PARENT(encoding_arg, context_arg, space_arg, new_name) \
 	GIT_DIFF_INITIAL(encoding_arg, "", context_arg, space_arg, "/dev/null", new_name)
diff --git a/include/tig/options.h b/include/tig/options.h
index a17456a0c..22a9d93c8 100644
--- a/include/tig/options.h
+++ b/include/tig/options.h
@@ -199,6 +199,7 @@ const char *commit_order_arg_with_graph(enum graph_display graph_display);
 const char *log_custom_pretty_arg();
 const char *use_mailmap_arg();
 const char *diff_context_arg();
+const char *diff_prefix_arg();
 const char *word_diff_arg();
 const char *show_notes_arg();
 
diff --git a/src/blame.c b/src/blame.c
index a665c18cc..9c187fbcc 100644
--- a/src/blame.c
+++ b/src/blame.c
@@ -431,6 +431,7 @@ blame_request(struct view *view, enum request request, struct line *line)
 			const char *diff_parent_argv[] = {
 				GIT_DIFF_BLAME(encoding_arg,
 					diff_context_arg(),
+					diff_prefix_arg(),
 					ignore_space_arg(),
 					word_diff_arg(),
 					blame->commit->filename)
diff --git a/src/options.c b/src/options.c
index 019318738..db72e29ab 100644
--- a/src/options.c
+++ b/src/options.c
@@ -140,6 +140,12 @@ diff_context_arg()
 	return opt_diff_context_arg;
 }
 
+const char *
+diff_prefix_arg()
+{
+	return opt_diff_noprefix ? "--no-prefix" : ""; /* --default-prefix did not exist before Git 2.41. */
+}
+
 const char *
 word_diff_arg()
 {
@@ -260,7 +266,7 @@ update_options_from_argv(const char *argv[])
 		}
 
 		if (!strcmp(flag, "--word-diff=none")) {
-			/* opt_word_diff = false; */
+			opt_word_diff = false;
 			mark_option_seen(&opt_word_diff);
 			continue;
 		}
@@ -284,6 +290,12 @@ update_options_from_argv(const char *argv[])
 			/* Keep the flag in argv. */
 		}
 
+		if (!strcmp(flag, "--default-prefix")) {
+			opt_diff_noprefix = false;
+			mark_option_seen(&opt_diff_noprefix);
+			/* Keep the flag in argv. */
+		}
+
 		argv[flags_pos++] = flag;
 	}
 
diff --git a/src/stage.c b/src/stage.c
index 348cea362..f82aeec0e 100644
--- a/src/stage.c
+++ b/src/stage.c
@@ -205,6 +205,8 @@ stage_apply_chunk(struct view *view, struct line *chunk, struct line *single,
 	if (!diff_hdr)
 		return false;
 
+	if (opt_diff_noprefix)
+		apply_argv[argc++] = "-p0";
 	if (!revert)
 		apply_argv[argc++] = "--cached";
 	if (revert || stage_line_type == LINE_STAT_STAGED)
@@ -711,19 +713,21 @@ stage_open(struct view *view, enum open_flags flags)
 			stage_status.new.name)
 	};
 	const char *index_show_argv[] = {
-		GIT_DIFF_STAGED(encoding_arg, diff_context_arg(), ignore_space_arg(),
-			word_diff_arg(), stage_status.old.name, stage_status.new.name)
+		GIT_DIFF_STAGED(encoding_arg, diff_context_arg(), diff_prefix_arg(),
+			ignore_space_arg(), word_diff_arg(), stage_status.old.name,
+			stage_status.new.name)
 	};
 	const char *files_show_argv[] = {
-		GIT_DIFF_UNSTAGED(encoding_arg, diff_context_arg(), ignore_space_arg(),
-			word_diff_arg(), stage_status.old.name, stage_status.new.name)
+		GIT_DIFF_UNSTAGED(encoding_arg, diff_context_arg(), diff_prefix_arg(),
+			ignore_space_arg(), word_diff_arg(), stage_status.old.name,
+			stage_status.new.name)
 	};
 	/* Diffs for unmerged entries are empty when passing the new
 	 * path, so leave out the new path. */
 	const char *files_unmerged_argv[] = {
 		"git", "diff-files", encoding_arg, "--textconv", "--patch-with-stat",
-			DIFF_ARGS, diff_context_arg(), ignore_space_arg(), "--",
-			stage_status.old.name, NULL
+			DIFF_ARGS, diff_context_arg(), diff_prefix_arg(),
+			ignore_space_arg(), "--", stage_status.old.name, NULL
 	};
 	static const char *file_argv[] = { repo.exec_dir, stage_status.new.name, NULL };
 	const char **argv = NULL;
diff --git a/src/stash.c b/src/stash.c
index ac7b9290a..0c00868c7 100644
--- a/src/stash.c
+++ b/src/stash.c
@@ -81,7 +81,7 @@ stash_request(struct view *view, enum request request, struct line *line)
 				"git", "stash", "show", encoding_arg, "--pretty=fuller",
 					"--patch-with-stat", diff_context_arg(),
 					ignore_space_arg(), word_diff_arg(), DIFF_ARGS,
-					"--no-color", "%(stash)", NULL
+					"%(cmdlineargs)", "--no-color", "%(stash)", NULL
 			};
 
 			if (!argv_format(diff_view.env, &diff_view.argv, diff_argv, 0))
diff --git a/test/diff/editor-test b/test/diff/editor-test
index 96377abed..7b5c6ff24 100755
--- a/test/diff/editor-test
+++ b/test/diff/editor-test
@@ -258,8 +258,8 @@ test_case noprefix-conflict \
 ' << EOF
   1| diff --cc conflict-file
    | index 86c5a05,b4c3de6..0000000
-   | --- a/conflict-file
-   | +++ b/conflict-file
+   | --- conflict-file
+   | +++ conflict-file
   5| @@@ -1,1 -1,1 +1,5 @@@
    | ++<<<<<<< HEAD
    |  +c'
diff --git a/test/diff/submodule-editor-test b/test/diff/submodule-editor-test
index 89161c94c..ec7e5811f 100755
--- a/test/diff/submodule-editor-test
+++ b/test/diff/submodule-editor-test
@@ -288,8 +288,8 @@ test_case noprefix-conflict \
 ' << EOF
   1| diff --cc conflict-file
    | index 86c5a05,b4c3de6..0000000
-   | --- a/conflict-file
-   | +++ b/conflict-file
+   | --- conflict-file
+   | +++ conflict-file
   5| @@@ -1,1 -1,1 +1,5 @@@
    | ++<<<<<<< HEAD
    |  +c'
diff --git a/test/diff/worktree-editor-test b/test/diff/worktree-editor-test
index 2e71c347d..6abcb1c74 100755
--- a/test/diff/worktree-editor-test
+++ b/test/diff/worktree-editor-test
@@ -283,8 +283,8 @@ test_case noprefix-conflict \
 ' << EOF
   1| diff --cc conflict-file
    | index 86c5a05,b4c3de6..0000000
-   | --- a/conflict-file
-   | +++ b/conflict-file
+   | --- conflict-file
+   | +++ conflict-file
   5| @@@ -1,1 -1,1 +1,5 @@@
    | ++<<<<<<< HEAD
    |  +c'