diff --git a/CHANGELOG.rst b/CHANGELOG.rst
index a9e9353d8..f216137a0 100644
--- a/CHANGELOG.rst
+++ b/CHANGELOG.rst
@@ -103,6 +103,7 @@ Interactive improvements
    revealed.
 -  The output of ``time`` is now properly aligned in all cases (#6726).
 -  The ``pwd`` command supports the long options ``--logical`` and ``--physical``, matching other implementations (#6787).
+-  ``diff`` will now colourise output, if supported (#7308).
 
 
 New or improved bindings
diff --git a/share/functions/diff.fish b/share/functions/diff.fish
new file mode 100644
index 000000000..e91335b09
--- /dev/null
+++ b/share/functions/diff.fish
@@ -0,0 +1,6 @@
+# Use colours in diff output, if supported
+if command -vq diff; and command diff --color=auto /dev/null{,} >/dev/null 2>&1
+    function diff
+        command diff --color=auto $argv
+    end
+end