diff --git a/apps/web/components/diff/use-expandable-diff.ts b/apps/web/components/diff/use-expandable-diff.ts
index 6365a15d06..84567952ea 100644
--- a/apps/web/components/diff/use-expandable-diff.ts
+++ b/apps/web/components/diff/use-expandable-diff.ts
@@ -114,11 +114,14 @@ export function useExpandableDiff({
   const [error, setError] = useState<string | null>(null);
 
   // Reset cached content when inputs change so stale data is never rendered.
+  // Including fileDiffMetadata ensures expansion content is invalidated when
+  // the diff changes (e.g., file modified while Diff panel is open), because
+  // @pierre/diffs uses oldLines/newLines for rendering when present.
   useEffect(() => {
     requestVersionRef.current += 1;
     setLoadedContent(null);
     setError(null);
-  }, [sessionId, filePath, baseRef]);
+  }, [sessionId, filePath, baseRef, fileDiffMetadata]);
 
   const loadContent = useCallback(async () => {
     if (!sessionId || !enableExpansion || loadedContent || isLoading) return;
diff --git a/apps/web/e2e/tests/git/diff-update.spec.ts b/apps/web/e2e/tests/git/diff-update.spec.ts
index 1e32508b62..488035d0df 100644
--- a/apps/web/e2e/tests/git/diff-update.spec.ts
+++ b/apps/web/e2e/tests/git/diff-update.spec.ts
@@ -158,6 +158,54 @@ test.describe("Diff update on file change", () => {
       timeout: 15_000,
     });
   });
+
+  test("diff panel auto-updates without re-opening when file changes", async ({
+    testPage,
+    apiClient,
+    seedData,
+  }) => {
+    // This test verifies the Diff [file] panel reactively updates when the
+    // underlying file changes, WITHOUT the user re-clicking the file.
+    const { session } = await seedDiffUpdateTask(testPage, apiClient, seedData);
+    await openChangesTab(testPage);
+    await openFileDiff(testPage, "diff_update_test.txt");
+
+    // Verify initial diff content
+    const diffsContainer = getDiffsContainer(testPage);
+    await expect(diffsContainer).toBeVisible({ timeout: 15_000 });
+    await expect(diffsContainer.getByText("FIRST_MODIFICATION", { exact: true })).toBeVisible({
+      timeout: 15_000,
+    });
+
+    // Switch to chat, trigger the second modification
+    await session.clickSessionChatTab();
+    await session.sendMessage("/e2e:diff-update-modify");
+    await expect(
+      session.chat.getByText("diff-update-modify complete", { exact: false }),
+    ).toBeVisible({ timeout: 45_000 });
+
+    // DO NOT re-open the file diff via Changes tab. Instead, click the diff
+    // panel tab directly — the panel is still mounted, just not the active tab.
+    const diffTab = testPage.locator(".dv-default-tab", { hasText: "diff_update_test.txt" });
+    await expect(diffTab).toBeVisible({ timeout: 10_000 });
+    await diffTab.click();
+
+    // The diff should auto-update with the new content (no re-click needed).
+    const updatedDiffsContainer = getDiffsContainer(testPage);
+    await expect(updatedDiffsContainer).toBeVisible({ timeout: 15_000 });
+    await expect(
+      updatedDiffsContainer.getByText("SECOND_MODIFICATION", { exact: true }),
+    ).toBeVisible({ timeout: 30_000 });
+
+    // Verify old content is gone
+    await expect(
+      updatedDiffsContainer.getByText("FIRST_MODIFICATION", { exact: true }),
+    ).toHaveCount(0);
+
+    await expect(updatedDiffsContainer.getByText("ALSO_CHANGED", { exact: true })).toBeVisible({
+      timeout: 15_000,
+    });
+  });
 });
 
 test.describe("Untracked file diff update", () => {