diff --git a/usr.bin/diff/diffreg.c b/usr.bin/diff/diffreg.c
--- a/usr.bin/diff/diffreg.c
+++ b/usr.bin/diff/diffreg.c
@@ -709,10 +709,10 @@
 				 * in one file for -b or -w.
 				 */
 				if (flags & (D_FOLDBLANKS | D_IGNOREBLANKS)) {
-					if (c == EOF && d == '\n') {
+					if (c == EOF && isspace(d)) {
 						ctnew++;
 						break;
-					} else if (c == '\n' && d == EOF) {
+					} else if (isspace(c) && d == EOF) {
 						ctold++;
 						break;
 					}
diff --git a/usr.bin/diff/tests/diff_test.sh b/usr.bin/diff/tests/diff_test.sh
--- a/usr.bin/diff/tests/diff_test.sh
+++ b/usr.bin/diff/tests/diff_test.sh
@@ -22,6 +22,7 @@
 atf_test_case functionname
 atf_test_case noderef
 atf_test_case ignorecase
+atf_test_case crlfeol
 
 simple_body()
 {
@@ -334,6 +335,14 @@
 	atf_check -o empty -s exit:0 diff -u -r --ignore-file-name-case A B
 }
 
+crlfeol_body()
+{
+	printf 'hello world\r\n' > a
+	printf 'hello world' > b
+
+	atf_check -o empty -s exit:0 diff -b a b
+}
+
 atf_init_test_cases()
 {
 	atf_add_test_case simple
@@ -358,4 +367,5 @@
 	atf_add_test_case functionname
 	atf_add_test_case noderef
 	atf_add_test_case ignorecase
+	atf_add_test_case crlfeol
 }