diff --git a/crates/but-core/tests/core/main.rs b/crates/but-core/tests/core/main.rs
index 3d5cc326fa9..13c0a0d5faf 100644
--- a/crates/but-core/tests/core/main.rs
+++ b/crates/but-core/tests/core/main.rs
@@ -5,6 +5,7 @@ mod commit;
 mod diff;
 mod extract_remote_name_and_short_name;
 mod json_samples;
+mod merge;
 mod ref_metadata;
 mod settings;
 mod snapshot;
diff --git a/crates/but-core/tests/core/merge.rs b/crates/but-core/tests/core/merge.rs
new file mode 100644
index 00000000000..3e63efcf20b
--- /dev/null
+++ b/crates/but-core/tests/core/merge.rs
@@ -0,0 +1,108 @@
+/// Tests for gix blob-merge behaviour.
+///
+/// Some tests in this module are expected to **fail** until an upstream gix bug
+/// is resolved.  Those tests are marked `#[should_panic]` so the test suite
+/// stays green in the interim; once gix is fixed the annotation must be removed.
+use gix::merge::blob::{
+    Resolution,
+    builtin_driver::text::{Conflict, ConflictStyle, Labels, Options},
+};
+
+fn fixtures() -> std::path::PathBuf {
+    let dir = std::path::PathBuf::from(env!("CARGO_MANIFEST_DIR")).join("tests/fixtures/merge");
+    assert!(dir.exists(), "fixtures directory missing: {dir:?}");
+    dir
+}
+
+/// gix's Myers blob merge produces a false conflict on certain inputs where
+/// `git merge-file` (also Myers-based) resolves cleanly.
+///
+/// Scenario (minimal reproduction – 5/4/4 lines)
+/// -----------------------------------------------
+/// * **base** – `alpha_x`, blank, `bravo_x`, `charlie_x`, blank
+/// * **ours** – blank, blank, `bravo_x`, `charlie_x`
+///   (i.e. `alpha_x` deleted, one blank added, trailing blank removed)
+/// * **theirs** – `alpha_x`, blank, `charlie_x`, blank
+///   (i.e. `bravo_x` deleted)
+///
+/// `git merge-file -p ours base theirs` exits 0 (clean merge).
+/// imara-diff's Myers implementation chooses different hunk boundaries when
+/// blank lines create alignment ambiguity, causing the 3-way merge to see
+/// the `bravo_x` deletion as overlapping with the `alpha_x` area changes.
+///
+/// Upstream issue: https://github.com/GitoxideLabs/gitoxide/issues/2475
+///
+/// Remove `#[should_panic]` once the upstream fix lands.
+#[test]
+#[should_panic(expected = "https://github.com/GitoxideLabs/gitoxide/issues/2475")]
+fn myers_blob_merge_false_conflict_with_large_insertion_and_adjacent_deletion() {
+    let dir = fixtures();
+    let base = std::fs::read(dir.join("base.txt")).unwrap();
+    let ours = std::fs::read(dir.join("ours.txt")).unwrap();
+    let theirs = std::fs::read(dir.join("theirs.txt")).unwrap();
+
+    let labels = Labels {
+        ancestor: Some("base".into()),
+        current: Some("ours".into()),
+        other: Some("theirs".into()),
+    };
+    let options = Options {
+        diff_algorithm: gix::diff::blob::Algorithm::Myers,
+        conflict: Conflict::Keep {
+            style: ConflictStyle::Merge,
+            marker_size: std::num::NonZeroU8::new(7).unwrap(),
+        },
+    };
+
+    let mut out = Vec::new();
+    let mut input = gix::diff::blob::intern::InternedInput::new(&[][..], &[][..]);
+    let resolution = gix::merge::blob::builtin_driver::text(
+        &mut out, &mut input, labels, &ours, &base, &theirs, options,
+    );
+
+    assert_eq!(
+        resolution,
+        Resolution::Complete,
+        "gix Myers blob merge should resolve cleanly (upstream bug: \
+         https://github.com/GitoxideLabs/gitoxide/issues/2475)"
+    );
+}
+
+/// Sanity check: the Histogram algorithm already resolves the same input
+/// without conflicts.  This test must always pass.
+#[test]
+fn histogram_blob_merge_resolves_large_insertion_and_adjacent_deletion() {
+    let dir = fixtures();
+    let base = std::fs::read(dir.join("base.txt")).unwrap();
+    let ours = std::fs::read(dir.join("ours.txt")).unwrap();
+    let theirs = std::fs::read(dir.join("theirs.txt")).unwrap();
+
+    let labels = Labels {
+        ancestor: Some("base".into()),
+        current: Some("ours".into()),
+        other: Some("theirs".into()),
+    };
+    let options = Options {
+        diff_algorithm: gix::diff::blob::Algorithm::Histogram,
+        conflict: Conflict::Keep {
+            style: ConflictStyle::Merge,
+            marker_size: std::num::NonZeroU8::new(7).unwrap(),
+        },
+    };
+
+    let mut out = Vec::new();
+    let mut input = gix::diff::blob::intern::InternedInput::new(&[][..], &[][..]);
+    let resolution = gix::merge::blob::builtin_driver::text(
+        &mut out, &mut input, labels, &ours, &base, &theirs, options,
+    );
+
+    assert_eq!(
+        resolution,
+        Resolution::Complete,
+        "Histogram should merge without conflicts"
+    );
+    assert!(
+        !String::from_utf8_lossy(&out).contains("<<<<<<<"),
+        "Histogram merge output should contain no conflict markers"
+    );
+}
diff --git a/crates/but-core/tests/fixtures/merge/base.txt b/crates/but-core/tests/fixtures/merge/base.txt
new file mode 100644
index 00000000000..cfa77614627
--- /dev/null
+++ b/crates/but-core/tests/fixtures/merge/base.txt
@@ -0,0 +1,5 @@
+alpha_x
+
+bravo_x
+charlie_x
+
diff --git a/crates/but-core/tests/fixtures/merge/ours.txt b/crates/but-core/tests/fixtures/merge/ours.txt
new file mode 100644
index 00000000000..8b40acfacc0
--- /dev/null
+++ b/crates/but-core/tests/fixtures/merge/ours.txt
@@ -0,0 +1,4 @@
+
+
+bravo_x
+charlie_x
diff --git a/crates/but-core/tests/fixtures/merge/theirs.txt b/crates/but-core/tests/fixtures/merge/theirs.txt
new file mode 100644
index 00000000000..5fea27741e3
--- /dev/null
+++ b/crates/but-core/tests/fixtures/merge/theirs.txt
@@ -0,0 +1,4 @@
+alpha_x
+
+charlie_x
+