diff --git a/server/zanata-war/src/main/java/org/zanata/webtrans/client/TransMemoryPresenter.java b/server/zanata-war/src/main/java/org/zanata/webtrans/client/TransMemoryPresenter.java
index 2a66796afe..7c67375392 100644
--- a/server/zanata-war/src/main/java/org/zanata/webtrans/client/TransMemoryPresenter.java
+++ b/server/zanata-war/src/main/java/org/zanata/webtrans/client/TransMemoryPresenter.java
@@ -38,7 +38,7 @@ public interface Display extends WidgetDisplay
 
       HasText getTmTextBox();
 
-      void createTable(ArrayList<TranslationMemoryItem> memories);
+      void createTable(String query, ArrayList<TranslationMemoryItem> memories);
       
       void startProcessing();
       
@@ -88,7 +88,7 @@ public void showResultsFor(TransUnit transUnit)
       showResults(query, searchType);
    }
 
-   private void showResults(String query, GetTranslationMemory.SearchType searchType)
+   private void showResults(final String query, GetTranslationMemory.SearchType searchType)
    {
       display.startProcessing();
       final GetTranslationMemory action = new GetTranslationMemory(query, workspaceContext.getWorkspaceId().getLocaleId(), searchType);
@@ -104,7 +104,7 @@ public void onFailure(Throwable caught)
          public void onSuccess(GetTranslationMemoryResult result)
          {
             ArrayList<TranslationMemoryItem> memories = result.getMemories();
-            display.createTable(memories);
+            display.createTable(query, memories);
          }
       });
    }
diff --git a/server/zanata-war/src/main/java/org/zanata/webtrans/client/TransMemoryView.java b/server/zanata-war/src/main/java/org/zanata/webtrans/client/TransMemoryView.java
index 85ae8254b7..8cd0b2dee8 100644
--- a/server/zanata-war/src/main/java/org/zanata/webtrans/client/TransMemoryView.java
+++ b/server/zanata-war/src/main/java/org/zanata/webtrans/client/TransMemoryView.java
@@ -5,6 +5,7 @@
 import net.customware.gwt.presenter.client.EventBus;
 
 import org.zanata.webtrans.client.events.TransMemoryCopyEvent;
+import org.zanata.webtrans.client.ui.DiffMatchPatchLabel;
 import org.zanata.webtrans.client.ui.HighlightingLabel;
 import org.zanata.webtrans.shared.model.TranslationMemoryItem;
 
@@ -150,7 +151,7 @@ public void stopProcessing()
    }
 
    @Override
-   public void createTable(ArrayList<TranslationMemoryItem> memories)
+   public void createTable(String query, ArrayList<TranslationMemoryItem> memories)
    {
       // TODO most of this should be in TransMemoryPresenter
       clearResults();
@@ -166,7 +167,7 @@ public void createTable(ArrayList<TranslationMemoryItem> memories)
          final String targetMessage = memory.getTarget();
          final int similarity = memory.getSimilarityPercent();
 
-         resultTable.setWidget(row, SOURCE_COL, new HighlightingLabel(sourceMessage));
+         resultTable.setWidget(row, SOURCE_COL, new DiffMatchPatchLabel(query, sourceMessage));
          resultTable.setWidget(row, TARGET_COL, new HighlightingLabel(targetMessage));
          resultTable.setText(row, SIMILARITY_COL, similarity + "%");
 
diff --git a/server/zanata-war/src/main/java/org/zanata/webtrans/client/ui/CodeMirror.java b/server/zanata-war/src/main/java/org/zanata/webtrans/client/ui/CodeMirror.java
deleted file mode 100644
index 8fce724003..0000000000
--- a/server/zanata-war/src/main/java/org/zanata/webtrans/client/ui/CodeMirror.java
+++ /dev/null
@@ -1,71 +0,0 @@
-/*
- * Copyright 2010, Red Hat, Inc. and individual contributors as indicated by the
- * @author tags. See the copyright.txt file in the distribution for a full
- * listing of individual contributors.
- * 
- * This is free software; you can redistribute it and/or modify it under the
- * terms of the GNU Lesser General Public License as published by the Free
- * Software Foundation; either version 2.1 of the License, or (at your option)
- * any later version.
- * 
- * This software is distributed in the hope that it will be useful, but WITHOUT
- * ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or FITNESS
- * FOR A PARTICULAR PURPOSE. See the GNU Lesser General Public License for more
- * details.
- * 
- * You should have received a copy of the GNU Lesser General Public License
- * along with this software; if not, write to the Free Software Foundation,
- * Inc., 51 Franklin St, Fifth Floor, Boston, MA 02110-1301 USA, or see the FSF
- * site: http://www.fsf.org.
- */
-package org.zanata.webtrans.client.ui;
-
-import com.google.gwt.user.client.Element;
-
-public class CodeMirror
-{
-
-   public static native void doHighlight(String text, Element elem)/*-{
-      elem.innerHTML = '';
-      $wnd.highlightText(text, elem);
-   }-*/;
-
-   public static native void highlightSearch(String searchTerm, Element elem)/*-{
-      // the highlightStartTag and highlightEndTag parameters are optional
-      var bodyText = elem.innerHTML;
-
-      var highlightStartTag = "<font style='color:blue; background-color:yellow;'>";
-      var highlightEndTag = "</font>";
-
-      // find all occurences of the search term in the given text,
-      // and add some "highlight" tags to them (we're not using a
-      // regular expression search, because we want to filter out
-      // matches that occur within HTML tags and script blocks, so
-      // we have to do a little extra validation)
-      var newText = "";
-      var i = -1;
-      var lcSearchTerm = searchTerm.toLowerCase();
-      var lcBodyText = bodyText.toLowerCase();
-
-      while (bodyText.length > 0) {
-      i = lcBodyText.indexOf(lcSearchTerm, i+1);
-      if (i < 0) {
-      newText += bodyText;
-      bodyText = "";
-      } else {
-      // skip anything inside an HTML tag
-      if (bodyText.lastIndexOf(">", i) >= bodyText.lastIndexOf("<", i)) {
-      // skip anything inside a <script> block
-      if (lcBodyText.lastIndexOf("/script>", i) >= lcBodyText.lastIndexOf("<script", i)) {
-      newText += bodyText.substring(0, i) + highlightStartTag + bodyText.substr(i, searchTerm.length) + highlightEndTag;
-      bodyText = bodyText.substr(i + searchTerm.length);
-      lcBodyText = bodyText.toLowerCase();
-      i = -1;
-      }
-      }
-      }
-      elem.innerHTML = newText;
-      }
-   }-*/;
-
-}
diff --git a/server/zanata-war/src/main/java/org/zanata/webtrans/client/ui/DiffMatchPatchLabel.java b/server/zanata-war/src/main/java/org/zanata/webtrans/client/ui/DiffMatchPatchLabel.java
new file mode 100644
index 0000000000..ee8331db50
--- /dev/null
+++ b/server/zanata-war/src/main/java/org/zanata/webtrans/client/ui/DiffMatchPatchLabel.java
@@ -0,0 +1,55 @@
+/*
+ * Copyright 2010, Red Hat, Inc. and individual contributors as indicated by the
+ * @author tags. See the copyright.txt file in the distribution for a full
+ * listing of individual contributors.
+ * 
+ * This is free software; you can redistribute it and/or modify it under the
+ * terms of the GNU Lesser General Public License as published by the Free
+ * Software Foundation; either version 2.1 of the License, or (at your option)
+ * any later version.
+ * 
+ * This software is distributed in the hope that it will be useful, but WITHOUT
+ * ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or FITNESS
+ * FOR A PARTICULAR PURPOSE. See the GNU Lesser General Public License for more
+ * details.
+ * 
+ * You should have received a copy of the GNU Lesser General Public License
+ * along with this software; if not, write to the Free Software Foundation,
+ * Inc., 51 Franklin St, Fifth Floor, Boston, MA 02110-1301 USA, or see the FSF
+ * site: http://www.fsf.org.
+ */
+package org.zanata.webtrans.client.ui;
+
+import com.google.gwt.user.client.ui.HTML;
+
+public class DiffMatchPatchLabel extends HTML
+{
+   private String original;
+   private String plainText;
+
+   public DiffMatchPatchLabel()
+   {
+   }
+
+   public DiffMatchPatchLabel(String orig, String text)
+   {
+      super();
+      this.original = orig;
+      setText(text);
+   }
+
+   @Override
+   public String getText()
+   {
+      return plainText;
+   }
+
+   @Override
+   public void setText(String text)
+   {
+      this.plainText = text;
+      String diff = Highlighting.diffAsHtml(original, plainText);
+      setHTML(diff);
+   }
+
+}
diff --git a/server/zanata-war/src/main/java/org/zanata/webtrans/client/ui/Highlighting.java b/server/zanata-war/src/main/java/org/zanata/webtrans/client/ui/Highlighting.java
new file mode 100644
index 0000000000..1e1452fd30
--- /dev/null
+++ b/server/zanata-war/src/main/java/org/zanata/webtrans/client/ui/Highlighting.java
@@ -0,0 +1,117 @@
+/*
+ * Copyright 2010, Red Hat, Inc. and individual contributors as indicated by the
+ * @author tags. See the copyright.txt file in the distribution for a full
+ * listing of individual contributors.
+ * 
+ * This is free software; you can redistribute it and/or modify it under the
+ * terms of the GNU Lesser General Public License as published by the Free
+ * Software Foundation; either version 2.1 of the License, or (at your option)
+ * any later version.
+ * 
+ * This software is distributed in the hope that it will be useful, but WITHOUT
+ * ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or FITNESS
+ * FOR A PARTICULAR PURPOSE. See the GNU Lesser General Public License for more
+ * details.
+ * 
+ * You should have received a copy of the GNU Lesser General Public License
+ * along with this software; if not, write to the Free Software Foundation,
+ * Inc., 51 Franklin St, Fifth Floor, Boston, MA 02110-1301 USA, or see the FSF
+ * site: http://www.fsf.org.
+ */
+package org.zanata.webtrans.client.ui;
+
+import com.google.gwt.user.client.Element;
+
+public class Highlighting
+{
+
+   public static native void syntaxHighlight(String text, Element elem)/*-{
+		elem.innerHTML = '';
+		$wnd.highlightText(text, elem);
+   }-*/;
+
+   public static native void searchHighlight(String searchTerm, Element elem)/*-{
+		// the highlightStartTag and highlightEndTag parameters are optional
+		var bodyText = elem.innerHTML;
+
+		var highlightStartTag = "<font style='color:blue; background-color:yellow;'>";
+		var highlightEndTag = "</font>";
+
+		// find all occurences of the search term in the given text,
+		// and add some "highlight" tags to them (we're not using a
+		// regular expression search, because we want to filter out
+		// matches that occur within HTML tags and script blocks, so
+		// we have to do a little extra validation)
+		var newText = "";
+		var i = -1;
+		var lcSearchTerm = searchTerm.toLowerCase();
+		var lcBodyText = bodyText.toLowerCase();
+
+		while (bodyText.length > 0) {
+			i = lcBodyText.indexOf(lcSearchTerm, i + 1);
+			if (i < 0) {
+				newText += bodyText;
+				bodyText = "";
+			} else {
+				// skip anything inside an HTML tag
+				if (bodyText.lastIndexOf(">", i) >= bodyText
+						.lastIndexOf("<", i)) {
+					// skip anything inside a <script> block
+					if (lcBodyText.lastIndexOf("/script>", i) >= lcBodyText
+							.lastIndexOf("<script", i)) {
+						newText += bodyText.substring(0, i) + highlightStartTag
+								+ bodyText.substr(i, searchTerm.length)
+								+ highlightEndTag;
+						bodyText = bodyText.substr(i + searchTerm.length);
+						lcBodyText = bodyText.toLowerCase();
+						i = -1;
+					}
+				}
+			}
+			elem.innerHTML = newText;
+		}
+   }-*/;
+
+   public static native String diffAsHtml(String text1, String text2)/*-{
+		if (!$wnd.diffMatchPatch) {
+			$wnd.diffMatchPatch = new $wnd.diff_match_patch();
+			$wnd.diffMatchPatch.Diff_Timeout = 0.2;
+
+			// modified diff_prettyHtml() from diff_match_patch.js
+			$wnd.diffMatchPatch.prototype.diff_prettyHtml = function(diffs) {
+				var html = [];
+				var pattern_amp = /&/g;
+				var pattern_lt = /</g;
+				var pattern_gt = />/g;
+				var pattern_para = /\n/g;
+				for ( var x = 0; x < diffs.length; x++) {
+					var op = diffs[x][0]; // Operation (insert, delete, equal)
+					var data = diffs[x][1]; // Text of change.
+					var text = data.replace(pattern_amp, '&amp;').replace(
+							pattern_lt, '&lt;').replace(pattern_gt, '&gt;')
+							.replace(pattern_para, '&para;<br>');
+					switch (op) {
+					case DIFF_INSERT:
+						html[x] = '<ins class="diff-insert">' + text + '</ins>';
+						break;
+					case DIFF_DELETE:
+						html[x] = '<del class="diff-delete">' + text + '</del>';
+						break;
+					case DIFF_EQUAL:
+						html[x] = '<span class="diff-equal">' + text
+								+ '</span>';
+						break;
+					}
+				}
+				return html.join('');
+			};
+
+		}
+		var dmp = $wnd.diffMatchPatch;
+
+		var d = dmp.diff_main(text1, text2);
+		dmp.diff_cleanupSemantic(d);
+		return dmp.diff_prettyHtml(d);
+   }-*/;
+
+}
diff --git a/server/zanata-war/src/main/java/org/zanata/webtrans/client/ui/HighlightingLabel.java b/server/zanata-war/src/main/java/org/zanata/webtrans/client/ui/HighlightingLabel.java
index d1750d78a3..e9a1119c88 100644
--- a/server/zanata-war/src/main/java/org/zanata/webtrans/client/ui/HighlightingLabel.java
+++ b/server/zanata-war/src/main/java/org/zanata/webtrans/client/ui/HighlightingLabel.java
@@ -56,13 +56,13 @@ private void highlight()
    {
       Element element = getElement();
       String text = plainText == null ? "" : plainText.replaceAll("\n", "¶\n");
-      CodeMirror.doHighlight(text, element);
+      Highlighting.syntaxHighlight(text, element);
    }
 
    public void highlightSearch(String search)
    {
       Element element = getElement();
-      CodeMirror.highlightSearch(search, element);
+      Highlighting.searchHighlight(search, element);
    }
 
 }
diff --git a/server/zanata-war/src/main/resources/org/zanata/webtrans/public/Application.css b/server/zanata-war/src/main/resources/org/zanata/webtrans/public/Application.css
index 7be0fc8a3d..fba5d8566b 100644
--- a/server/zanata-war/src/main/resources/org/zanata/webtrans/public/Application.css
+++ b/server/zanata-war/src/main/resources/org/zanata/webtrans/public/Application.css
@@ -440,6 +440,20 @@ tr.ApprovedStateDecoration td.TableEditorCell-Target .TableEditorContent-Edit {
 	font-weight: bold
 }
 
+.diff-equal {
+	background:yellow;
+}
+
+.diff-insert {
+	background:#e6ffe6;
+	text-decoration: none;
+}
+
+.diff-delete {
+	background:#ffe6e6;
+	text-decoration: none;
+}
+
 .DocumentListTable {
 	width: 100%;
 	font-size:16px;
diff --git a/server/zanata-war/src/main/resources/org/zanata/webtrans/public/Application.html b/server/zanata-war/src/main/resources/org/zanata/webtrans/public/Application.html
index 94098d6585..d3c8021ecb 100644
--- a/server/zanata-war/src/main/resources/org/zanata/webtrans/public/Application.html
+++ b/server/zanata-war/src/main/resources/org/zanata/webtrans/public/Application.html
@@ -12,6 +12,8 @@
     <script src="CodeMirror-0.67/js/tokenize.js" type="text/javascript"></script> 
     <script src="CodeMirror-0.67/js/parsexml.js" type="text/javascript"></script> 
     <link rel="stylesheet" type="text/css" href="CodeMirror-0.67/css/xmlcolors.css"/> 
+
+    <script src="diff_match_patch/javascript/diff_match_patch.js" type="text/javascript"></script>
      
     <!--                                           -->
     <!-- This script loads your compiled module.   -->