diff --git a/doc/gitsigns.txt b/doc/gitsigns.txt
index 9c8d8cc..3bf645b 100644
--- a/doc/gitsigns.txt
+++ b/doc/gitsigns.txt
@@ -415,18 +415,16 @@ signs                                                  *gitsigns-config-signs*
         • `show_count` to enable showing count of hunk, e.g. number of deleted
           lines.
 
-      Note if `hl`, `numhl` or `linehl` use a `GitSigns*` highlight and it is
-      not defined, it will be automatically derived by searching for other
-      defined highlights in the following order:
+      Note if a highlight is not defined, it will be automatically derived by
+      searching for other defined highlights in the following order:
         • `GitGutter*`
         • `Signify*`
         • `Diff*Gutter`
         • `diff*`
         • `Diff*`
 
-      For example if `signs.add.hl = GitSignsAdd` and `GitSignsAdd` is not
-      defined but `GitGutterAdd` is defined, then `GitSignsAdd` will be linked
-      to `GitGutterAdd`.
+      For example if `GitSignsAdd` is not defined but `GitGutterAdd` is defined,
+      then `GitSignsAdd` will be linked to `GitGutterAdd`.
 
 keymaps                                              *gitsigns-config-keymaps*
    DEPRECATED
@@ -744,9 +742,18 @@ word_diff                                          *gitsigns-config-word_diff*
       Requires `config.diff_opts.internal = true` .
 
       Uses the highlights:
-        • GitSignsAddLn
-        • GitSignsChangeLn
-        • GitSignsDeleteLn
+        • For word diff in previews:
+          • `GitSignsAddInline`
+          • `GitSignsChangeInline`
+          • `GitSignsDeleteInline`
+        • For word diff in buffer:
+          • `GitSignsAddLnInline`
+          • `GitSignsChangeLnInline`
+          • `GitSignsDeleteLnInline`
+        • For word diff in virtual lines (e.g. show_deleted):
+          • `GitSignsAddVirtLnInline`
+          • `GitSignsChangeVirtLnInline`
+          • `GitSignsDeleteVirtLnInline`
 
 debug_mode                                        *gitsigns-config-debug_mode*
       Type: `boolean`, Default: `false`
diff --git a/lua/gitsigns/actions.lua b/lua/gitsigns/actions.lua
index 6326190..6927c76 100644
--- a/lua/gitsigns/actions.lua
+++ b/lua/gitsigns/actions.lua
@@ -21,6 +21,7 @@ local Hunk_Public = gs_hunks.Hunk_Public
 
 local api = vim.api
 local current_buf = api.nvim_get_current_buf
+local add_highlight = api.nvim_buf_add_highlight
 
 local NavHunkOpts = {}
 
@@ -437,17 +438,21 @@ end
 
 local function highlight_hunk_lines(bufnr, offset, hunk)
    for i = 1, #hunk.removed.lines do
-      api.nvim_buf_add_highlight(bufnr, -1, 'DiffRemoved', offset + i - 1, 0, -1)
+      add_highlight(bufnr, -1, 'GitSignsDeleteLn', offset + i - 1, 0, -1)
    end
    for i = 1, #hunk.added.lines do
-      api.nvim_buf_add_highlight(bufnr, -1, 'DiffAdded', #hunk.removed.lines + offset + i - 1, 0, -1)
+      add_highlight(bufnr, -1, 'GitSignsAddLn', #hunk.removed.lines + offset + i - 1, 0, -1)
    end
 
    if config.diff_opts.internal then
-      local regions = require('gitsigns.diff_int').run_word_diff(hunk.removed.lines, hunk.added.lines)
-      for _, region in ipairs(regions) do
+      local removed_regions, added_regions = require('gitsigns.diff_int').run_word_diff(hunk.removed.lines, hunk.added.lines)
+      for _, region in ipairs(removed_regions) do
          local line, scol, ecol = region[1], region[3], region[4]
-         api.nvim_buf_add_highlight(bufnr, -1, 'TermCursor', line + offset - 1, scol, ecol)
+         add_highlight(bufnr, -1, 'GitSignsDeleteInline', line + offset - 1, scol, ecol)
+      end
+      for _, region in ipairs(added_regions) do
+         local line, scol, ecol = region[1], region[3], region[4]
+         add_highlight(bufnr, -1, 'GitSignsAddInline', line + offset - 1, scol, ecol)
       end
    end
 end
@@ -499,7 +504,7 @@ M.preview_hunk = noautocmd(function()
 
    local _, bufnr = popup.create(lines, config.preview_config)
 
-   api.nvim_buf_add_highlight(bufnr, -1, 'Title', 0, 0, -1)
+   add_highlight(bufnr, -1, 'Title', 0, 0, -1)
 
    api.nvim_buf_set_var(cbuf, '_gitsigns_preview_open', true)
    vim.cmd([[autocmd CursorMoved,CursorMovedI <buffer> ++once silent! unlet b:_gitsigns_preview_open]])
@@ -637,7 +642,7 @@ M.blame_line = void(function(opts)
 
    local highlights = {}
 
-   local function add_highlight(hlgroup, start, length)
+   local function add_hl(hlgroup, start, length)
       highlights[#highlights + 1] = { hlgroup, #lines - 1, start or 0, length or -1 }
    end
 
@@ -660,9 +665,9 @@ M.blame_line = void(function(opts)
       local p2 = #result.author
       local p3 = #date
 
-      add_highlight('Directory', 0, p1)
-      add_highlight('MoreMsg', p1 + 1, p2)
-      add_highlight('Label', p1 + p2 + 2, p3 + 2)
+      add_hl('Directory', 0, p1)
+      add_hl('MoreMsg', p1 + 1, p2)
+      add_hl('Label', p1 + p2 + 2, p3 + 2)
 
       vim.list_extend(lines, commit_message)
 
@@ -671,7 +676,7 @@ M.blame_line = void(function(opts)
       end
    else
       lines[#lines + 1] = result.author
-      add_highlight('ErrorMsg')
+      add_hl('ErrorMsg')
       if full then
          scheduler()
          hunk, ihunk = get_cursor_hunk(bufnr, bcache.hunks)
@@ -682,7 +687,7 @@ M.blame_line = void(function(opts)
    if hunk then
       lines[#lines + 1] = ''
       lines[#lines + 1] = ('Hunk %d of %d'):format(ihunk, nhunk)
-      add_highlight('Title')
+      add_hl('Title')
       vim.list_extend(lines, gs_hunks.patch_lines(hunk))
    end
 
@@ -691,7 +696,7 @@ M.blame_line = void(function(opts)
 
    for _, h in ipairs(highlights) do
       local hlgroup, line, start, length = h[1], h[2], h[3], h[4]
-      api.nvim_buf_add_highlight(pbufnr, -1, hlgroup, line, start, start + length)
+      add_highlight(pbufnr, -1, hlgroup, line, start, start + length)
    end
 
    if hunk then
diff --git a/lua/gitsigns/config.lua b/lua/gitsigns/config.lua
index 6439b27..031c028 100644
--- a/lua/gitsigns/config.lua
+++ b/lua/gitsigns/config.lua
@@ -131,18 +131,16 @@ M.schema = {
         • `show_count` to enable showing count of hunk, e.g. number of deleted
           lines.
 
-      Note if `hl`, `numhl` or `linehl` use a `GitSigns*` highlight and it is
-      not defined, it will be automatically derived by searching for other
-      defined highlights in the following order:
+      Note if a highlight is not defined, it will be automatically derived by
+      searching for other defined highlights in the following order:
         • `GitGutter*`
         • `Signify*`
         • `Diff*Gutter`
         • `diff*`
         • `Diff*`
 
-      For example if `signs.add.hl = GitSignsAdd` and `GitSignsAdd` is not
-      defined but `GitGutterAdd` is defined, then `GitSignsAdd` will be linked
-      to `GitGutterAdd`.
+      For example if `GitSignsAdd` is not defined but `GitGutterAdd` is defined,
+      then `GitSignsAdd` will be linked to `GitGutterAdd`.
     ]],
    },
 
@@ -591,9 +589,18 @@ M.schema = {
       Requires `config.diff_opts.internal = true` .
 
       Uses the highlights:
-        • GitSignsAddLn
-        • GitSignsChangeLn
-        • GitSignsDeleteLn
+        • For word diff in previews:
+          • `GitSignsAddInline`
+          • `GitSignsChangeInline`
+          • `GitSignsDeleteInline`
+        • For word diff in buffer:
+          • `GitSignsAddLnInline`
+          • `GitSignsChangeLnInline`
+          • `GitSignsDeleteLnInline`
+        • For word diff in virtual lines (e.g. show_deleted):
+          • `GitSignsAddVirtLnInline`
+          • `GitSignsChangeVirtLnInline`
+          • `GitSignsDeleteVirtLnInline`
     ]],
    },
 
diff --git a/lua/gitsigns/diff_int.lua b/lua/gitsigns/diff_int.lua
index 20c5f95..a782f46 100644
--- a/lua/gitsigns/diff_int.lua
+++ b/lua/gitsigns/diff_int.lua
@@ -50,11 +50,12 @@ local Region = {}
 local gaps_between_regions = 5
 
 function M.run_word_diff(removed, added)
-   if #removed ~= #added then
-      return {}
-   end
+   local adds = {}
+   local rems = {}
 
-   local ret = {}
+   if #removed ~= #added then
+      return rems, adds
+   end
 
    for i = 1, #removed do
 
@@ -93,14 +94,11 @@ function M.run_word_diff(removed, added)
       end
 
       for _, h in ipairs(hunks) do
-         local rem = { i, h.type, h.removed.start, h.removed.start + h.removed.count }
-         local add = { i + #removed, h.type, h.added.start, h.added.start + h.added.count }
-
-         ret[#ret + 1] = rem
-         ret[#ret + 1] = add
+         adds[#adds + 1] = { i + #removed, h.type, h.added.start, h.added.start + h.added.count }
+         rems[#rems + 1] = { i, h.type, h.removed.start, h.removed.start + h.removed.count }
       end
    end
-   return ret
+   return rems, adds
 end
 
 return M
diff --git a/lua/gitsigns/highlight.lua b/lua/gitsigns/highlight.lua
index 48c89a4..977909b 100644
--- a/lua/gitsigns/highlight.lua
+++ b/lua/gitsigns/highlight.lua
@@ -7,71 +7,65 @@ local M = {}
 
 
 
-local GitSignHl = {}
-
-
-
-
-
-
-
-
-
-
-
-
-
-
 
 local hls = {
-   GitSignsAdd = { 'GitGutterAdd', 'SignifySignAdd', 'DiffAddedGutter', 'diffAdded', 'DiffAdd' },
-   GitSignsChange = { 'GitGutterChange', 'SignifySignChange', 'DiffModifiedGutter', 'diffChanged', 'DiffChange' },
-   GitSignsDelete = { 'GitGutterDelete', 'SignifySignDelete', 'DiffRemovedGutter', 'diffRemoved', 'DiffDelete' },
+   { GitSignsAdd = { 'GitGutterAdd', 'SignifySignAdd', 'DiffAddedGutter', 'diffAdded', 'DiffAdd' } },
+   { GitSignsChange = { 'GitGutterChange', 'SignifySignChange', 'DiffModifiedGutter', 'diffChanged', 'DiffChange' } },
+   { GitSignsDelete = { 'GitGutterDelete', 'SignifySignDelete', 'DiffRemovedGutter', 'diffRemoved', 'DiffDelete' } },
 
-   GitSignsAddNr = { 'GitGutterAddLineNr', 'GitSignsAdd', 'SignifySignAdd', 'DiffAddedGutter', 'diffAdded', 'DiffAdd' },
-   GitSignsChangeNr = { 'GitGutterChangeLineNr', 'GitSignsChange', 'SignifySignChange', 'DiffModifiedGutter', 'diffChanged', 'DiffChange' },
-   GitSignsDeleteNr = { 'GitGutterDeleteLineNr', 'GitSignsDelete', 'SignifySignDelete', 'DiffRemovedGutter', 'diffRemoved', 'DiffDelete' },
+   { GitSignsAddNr = { 'GitGutterAddLineNr', 'GitSignsAdd' } },
+   { GitSignsChangeNr = { 'GitGutterChangeLineNr', 'GitSignsChange' } },
+   { GitSignsDeleteNr = { 'GitGutterDeleteLineNr', 'GitSignsDelete' } },
 
-   GitSignsAddLn = { 'GitGutterAddLine', 'SignifyLineAdd', 'DiffAdd' },
-   GitSignsChangeLn = { 'GitGutterChangeLine', 'SignifyLineChange', 'DiffChange' },
-   GitSignsDeleteLn = { 'GitGutterDeleteLine', 'SignifyLineDelete', 'DiffDelete' },
+   { GitSignsAddLn = { 'GitGutterAddLine', 'SignifyLineAdd', 'DiffAdd' } },
+   { GitSignsChangeLn = { 'GitGutterChangeLine', 'SignifyLineChange', 'DiffChange' } },
+   { GitSignsDeleteLn = { 'GitGutterDeleteLine', 'SignifyLineDelete', 'DiffDelete' } },
 
-   GitSignsCurrentLineBlame = { 'NonText' },
+   { GitSignsCurrentLineBlame = { 'NonText' } },
+
+   { GitSignsAddInline = { 'TermCursor' } },
+   { GitSignsDeleteInline = { 'TermCursor' } },
+   { GitSignsChangeInline = { 'TermCursor' } },
+
+   { GitSignsAddLnInline = { 'GitSignsAddInline' } },
+   { GitSignsChangeLnInline = { 'GitSignsChangeInline' } },
+   { GitSignsDeleteLnInline = { 'GitSignsDeleteInline' } },
+
+   { GitSignsAddLnVirtLn = { 'GitSignsAddLn' } },
+   { GitSignsChangeVirtLn = { 'GitSignsChangeLn' } },
+   { GitSignsDeleteVirtLn = { 'GitSignsDeleteLn' } },
+
+   { GitSignsAddLnVirtLnInLine = { 'GitSignsAddLnInline' } },
+   { GitSignsChangeVirtLnInLine = { 'GitSignsChangeLnInline' } },
+   { GitSignsDeleteVirtLnInLine = { 'GitSignsDeleteLnInline' } },
 }
 
 local function is_hl_set(hl_name)
 
    local exists, hl = pcall(api.nvim_get_hl_by_name, hl_name, true)
-   local color = hl.foreground or hl.background
+   local color = hl.foreground or hl.background or hl.reverse
    return exists and color ~= nil
 end
 
-local function isGitSignHl(hl)
-   return hls[hl] ~= nil
-end
 
 
+M.setup_highlights = function()
+   for _, hlg in ipairs(hls) do
+      for hl, candidates in pairs(hlg) do
+         if is_hl_set(hl) then
 
-M.setup_highlight = function(hl_name)
-   if not isGitSignHl(hl_name) then
-      return
-   end
-
-   if is_hl_set(hl_name) then
-
-      dprintf('Highlight %s is already defined', hl_name)
-      return
-   end
-
-   for _, d in ipairs(hls[hl_name]) do
-      if is_hl_set(d) then
-         dprintf('Deriving %s from %s', hl_name, d)
-         vim.cmd(('highlight default link %s %s'):format(hl_name, d))
-         return
+            dprintf('Highlight %s is already defined', hl)
+         else
+            for _, d in ipairs(candidates) do
+               if is_hl_set(d) then
+                  dprintf('Deriving %s from %s', hl, d)
+                  vim.cmd(('highlight default link %s %s'):format(hl, d))
+                  break
+               end
+            end
+         end
       end
    end
-
-   dprintf('Unable to setup highlight %s', hl_name)
 end
 
 return M
diff --git a/lua/gitsigns/manager.lua b/lua/gitsigns/manager.lua
index 965d43a..07dd17f 100644
--- a/lua/gitsigns/manager.lua
+++ b/lua/gitsigns/manager.lua
@@ -22,8 +22,7 @@ local util = require('gitsigns.util')
 local gs_hunks = require("gitsigns.hunks")
 local Hunk = gs_hunks.Hunk
 
-local setup_highlight = require('gitsigns.highlight').setup_highlight
-
+local setup_highlights = require('gitsigns.highlight').setup_highlights
 local config = require('gitsigns.config').config
 
 local api = vim.api
@@ -184,7 +183,8 @@ M.apply_word_diff = function(bufnr, row)
    for _, hunk in ipairs(cache[bufnr].hunks) do
       if lnum >= hunk.start and lnum <= hunk.vend then
          local size = (#hunk.added.lines + #hunk.removed.lines) / 2
-         local regions = require('gitsigns.diff_int').run_word_diff(hunk.removed.lines, hunk.added.lines)
+         local removed_regions, added_regions = require('gitsigns.diff_int').run_word_diff(hunk.removed.lines, hunk.added.lines)
+         local regions = vim.list_extend(removed_regions or {}, added_regions or {})
          for _, region in ipairs(regions) do
             local line = region[1]
             if lnum == hunk.start + line - size - 1 then
@@ -199,10 +199,11 @@ M.apply_word_diff = function(bufnr, row)
                   end
                   api.nvim_buf_set_extmark(bufnr, ns, row, scol - 1, {
                      end_col = ecol - 1,
-                     hl_group = rtype == 'add' and 'GitSignsAddLn' or
-                     rtype == 'change' and 'GitSignsChangeLn' or
-                     'GitSignsDeleteLn',
+                     hl_group = rtype == 'add' and 'GitSignsAddLnInline' or
+                     rtype == 'change' and 'GitSignsChangeLnInline' or
+                     'GitSignsDeleteLnInline',
                      ephemeral = true,
+                     priority = 1000,
                   })
                end
             end
@@ -249,19 +250,19 @@ local function show_deleted(bufnr)
                if rline > 1 then
                   break
                end
-               vline[#vline + 1] = { line:sub(last_ecol, scol - 1), config.signs.delete.linehl }
-               vline[#vline + 1] = { line:sub(scol, ecol - 1), 'TermCursor' }
+               vline[#vline + 1] = { line:sub(last_ecol, scol - 1), 'GitsignsDeleteVirtLn' }
+               vline[#vline + 1] = { line:sub(scol, ecol - 1), 'GitsignsDeleteVirtLnInline' }
                last_ecol = ecol
             end
          end
 
          if #line > 0 then
-            vline[#vline + 1] = { line:sub(last_ecol, -1), config.signs.delete.linehl }
+            vline[#vline + 1] = { line:sub(last_ecol, -1), 'GitsignsDeleteVirtLn' }
          end
 
 
          local padding = string.rep(' ', VIRT_LINE_LEN - #line)
-         vline[#vline + 1] = { padding, config.signs.delete.linehl }
+         vline[#vline + 1] = { padding, 'GitsignsDeleteVirtLn' }
 
          virt_lines[i] = vline
       end
@@ -340,16 +341,6 @@ M.setup_signs_and_highlights = function(redefine)
    for t, sign_name in pairs(signs.sign_map) do
       local cs = config.signs[t]
 
-      setup_highlight(cs.hl)
-
-      if config.numhl then
-         setup_highlight(cs.numhl)
-      end
-
-      if config.linehl or config.word_diff then
-         setup_highlight(cs.linehl)
-      end
-
       signs.define(sign_name, {
          texthl = cs.hl,
          text = config.signcolumn and cs.text or nil,
@@ -358,9 +349,8 @@ M.setup_signs_and_highlights = function(redefine)
       }, redefine)
 
    end
-   if config.current_line_blame then
-      setup_highlight('GitSignsCurrentLineBlame')
-   end
+
+   setup_highlights()
 end
 
 return M
diff --git a/teal/gitsigns/actions.tl b/teal/gitsigns/actions.tl
index 530768d..b99409b 100644
--- a/teal/gitsigns/actions.tl
+++ b/teal/gitsigns/actions.tl
@@ -21,6 +21,7 @@ local Hunk_Public = gs_hunks.Hunk_Public
 
 local api = vim.api
 local current_buf = api.nvim_get_current_buf
+local add_highlight = api.nvim_buf_add_highlight
 
 local record NavHunkOpts
   forwards: boolean
@@ -437,17 +438,21 @@ end
 
 local function highlight_hunk_lines(bufnr: integer, offset: integer, hunk: Hunk)
   for i = 1, #hunk.removed.lines do
-    api.nvim_buf_add_highlight(bufnr, -1, 'DiffRemoved', offset+i-1, 0, -1)
+    add_highlight(bufnr, -1, 'GitSignsDeleteLn', offset+i-1, 0, -1)
   end
   for i = 1, #hunk.added.lines do
-    api.nvim_buf_add_highlight(bufnr, -1, 'DiffAdded', #hunk.removed.lines + offset+i-1, 0, -1)
+    add_highlight(bufnr, -1, 'GitSignsAddLn', #hunk.removed.lines + offset+i-1, 0, -1)
   end
 
   if config.diff_opts.internal then
-    local regions = require('gitsigns.diff_int').run_word_diff(hunk.removed.lines, hunk.added.lines)
-    for _, region in ipairs(regions) do
+    local removed_regions, added_regions = require('gitsigns.diff_int').run_word_diff(hunk.removed.lines, hunk.added.lines)
+    for _, region in ipairs(removed_regions) do
       local line, scol, ecol = region[1], region[3], region[4]
-      api.nvim_buf_add_highlight(bufnr, -1, 'TermCursor', line+offset-1, scol, ecol)
+      add_highlight(bufnr, -1, 'GitSignsDeleteInline', line+offset-1, scol, ecol)
+    end
+    for _, region in ipairs(added_regions) do
+      local line, scol, ecol = region[1], region[3], region[4]
+      add_highlight(bufnr, -1, 'GitSignsAddInline', line+offset-1, scol, ecol)
     end
   end
 end
@@ -499,7 +504,7 @@ M.preview_hunk = noautocmd(function()
 
   local _, bufnr = popup.create(lines, config.preview_config)
 
-  api.nvim_buf_add_highlight(bufnr, -1, 'Title', 0, 0, -1)
+  add_highlight(bufnr, -1, 'Title', 0, 0, -1)
 
   api.nvim_buf_set_var(cbuf, '_gitsigns_preview_open', true)
   vim.cmd[[autocmd CursorMoved,CursorMovedI <buffer> ++once silent! unlet b:_gitsigns_preview_open]]
@@ -637,7 +642,7 @@ M.blame_line = void(function(opts: boolean | BlameOpts)
 
   local highlights: {{string, integer, integer, integer}} = {}
 
-  local function add_highlight(hlgroup: string, start: integer, length: integer)
+  local function add_hl(hlgroup: string, start: integer, length: integer)
     highlights[#highlights+1] = {hlgroup, #lines-1, start or 0, length or -1}
   end
 
@@ -660,9 +665,9 @@ M.blame_line = void(function(opts: boolean | BlameOpts)
     local p2 = #result.author
     local p3 = #date
 
-    add_highlight('Directory', 0      , p1)
-    add_highlight('MoreMsg'  , p1+1   , p2)
-    add_highlight('Label'    , p1+p2+2, p3+2)
+    add_hl('Directory', 0      , p1)
+    add_hl('MoreMsg'  , p1+1   , p2)
+    add_hl('Label'    , p1+p2+2, p3+2)
 
     vim.list_extend(lines, commit_message)
 
@@ -671,7 +676,7 @@ M.blame_line = void(function(opts: boolean | BlameOpts)
     end
   else
     lines[#lines+1] = result.author
-    add_highlight('ErrorMsg')
+    add_hl('ErrorMsg')
     if full then
       scheduler()
       hunk, ihunk = get_cursor_hunk(bufnr, bcache.hunks)
@@ -682,7 +687,7 @@ M.blame_line = void(function(opts: boolean | BlameOpts)
   if hunk then
     lines[#lines+1] = ''
     lines[#lines+1] = ('Hunk %d of %d'):format(ihunk, nhunk)
-    add_highlight('Title')
+    add_hl('Title')
     vim.list_extend(lines, gs_hunks.patch_lines(hunk))
   end
 
@@ -691,7 +696,7 @@ M.blame_line = void(function(opts: boolean | BlameOpts)
 
   for _, h in ipairs(highlights) do
     local hlgroup, line, start, length = h[1], h[2], h[3], h[4]
-    api.nvim_buf_add_highlight(pbufnr, -1, hlgroup, line, start, start+length)
+    add_highlight(pbufnr, -1, hlgroup, line, start, start+length)
   end
 
   if hunk then
diff --git a/teal/gitsigns/config.tl b/teal/gitsigns/config.tl
index 19f7ea1..573b6f3 100644
--- a/teal/gitsigns/config.tl
+++ b/teal/gitsigns/config.tl
@@ -131,18 +131,16 @@ M.schema = {
         • `show_count` to enable showing count of hunk, e.g. number of deleted
           lines.
 
-      Note if `hl`, `numhl` or `linehl` use a `GitSigns*` highlight and it is
-      not defined, it will be automatically derived by searching for other
-      defined highlights in the following order:
+      Note if a highlight is not defined, it will be automatically derived by
+      searching for other defined highlights in the following order:
         • `GitGutter*`
         • `Signify*`
         • `Diff*Gutter`
         • `diff*`
         • `Diff*`
 
-      For example if `signs.add.hl = GitSignsAdd` and `GitSignsAdd` is not
-      defined but `GitGutterAdd` is defined, then `GitSignsAdd` will be linked
-      to `GitGutterAdd`.
+      For example if `GitSignsAdd` is not defined but `GitGutterAdd` is defined,
+      then `GitSignsAdd` will be linked to `GitGutterAdd`.
     ]]
   },
 
@@ -591,9 +589,18 @@ M.schema = {
       Requires `config.diff_opts.internal = true` .
 
       Uses the highlights:
-        • GitSignsAddLn
-        • GitSignsChangeLn
-        • GitSignsDeleteLn
+        • For word diff in previews:
+          • `GitSignsAddInline`
+          • `GitSignsChangeInline`
+          • `GitSignsDeleteInline`
+        • For word diff in buffer:
+          • `GitSignsAddLnInline`
+          • `GitSignsChangeLnInline`
+          • `GitSignsDeleteLnInline`
+        • For word diff in virtual lines (e.g. show_deleted):
+          • `GitSignsAddVirtLnInline`
+          • `GitSignsChangeVirtLnInline`
+          • `GitSignsDeleteVirtLnInline`
     ]]
   },
 
diff --git a/teal/gitsigns/diff_int.tl b/teal/gitsigns/diff_int.tl
index 90b9500..4808636 100644
--- a/teal/gitsigns/diff_int.tl
+++ b/teal/gitsigns/diff_int.tl
@@ -49,12 +49,13 @@ local type Region = {integer, string, integer, integer}
 
 local gaps_between_regions = 5
 
-function M.run_word_diff(removed: {string}, added: {string}): {Region}
-  if #removed ~= #added then
-    return {}
-  end
+function M.run_word_diff(removed: {string}, added: {string}): {Region}, {Region}
+  local adds: {Region} = {}
+  local rems: {Region} = {}
 
-  local ret: {Region} = {}
+  if #removed ~= #added then
+    return rems, adds
+  end
 
   for i = 1, #removed do
     -- pair lines by position
@@ -93,14 +94,11 @@ function M.run_word_diff(removed: {string}, added: {string}): {Region}
     end
 
     for _, h in ipairs(hunks) do
-      local rem = {i         , h.type, h.removed.start, h.removed.start + h.removed.count}
-      local add = {i+#removed, h.type, h.added.start  , h.added.start   + h.added.count}
-
-      ret[#ret+1] = rem
-      ret[#ret+1] = add
+      adds[#adds+1] = {i+#removed, h.type, h.added.start  , h.added.start   + h.added.count}
+      rems[#rems+1] = {i         , h.type, h.removed.start, h.removed.start + h.removed.count}
     end
   end
-  return ret
+  return rems, adds
 end
 
 return M
diff --git a/teal/gitsigns/highlight.tl b/teal/gitsigns/highlight.tl
index ad287aa..600ad4c 100644
--- a/teal/gitsigns/highlight.tl
+++ b/teal/gitsigns/highlight.tl
@@ -4,74 +4,68 @@ local api = vim.api
 local dprintf = require("gitsigns.debug").dprintf
 
 local record M
-  setup_highlight: function(string)
+  setup_highlights: function()
 end
 
-local enum GitSignHl
-  'GitSignsAdd'
-  'GitSignsChange'
-  'GitSignsDelete'
+-- Use array of dict so we can iterate deterministically
+local hls: {{string:{string}}} = {
+  {GitSignsAdd                = {'GitGutterAdd'   , 'SignifySignAdd'   , 'DiffAddedGutter'   , 'diffAdded'  , 'DiffAdd'   }},
+  {GitSignsChange             = {'GitGutterChange', 'SignifySignChange', 'DiffModifiedGutter', 'diffChanged', 'DiffChange'}},
+  {GitSignsDelete             = {'GitGutterDelete', 'SignifySignDelete', 'DiffRemovedGutter' , 'diffRemoved', 'DiffDelete'}},
 
-  'GitSignsAddNr'
-  'GitSignsChangeNr'
-  'GitSignsDeleteNr'
+  {GitSignsAddNr              = {'GitGutterAddLineNr'   , 'GitSignsAdd'   }},
+  {GitSignsChangeNr           = {'GitGutterChangeLineNr', 'GitSignsChange'}},
+  {GitSignsDeleteNr           = {'GitGutterDeleteLineNr', 'GitSignsDelete'}},
 
-  'GitSignsAddLn'
-  'GitSignsChangeLn'
-  'GitSignsDeleteLn'
+  {GitSignsAddLn              = {'GitGutterAddLine'   , 'SignifyLineAdd'   , 'DiffAdd'   }},
+  {GitSignsChangeLn           = {'GitGutterChangeLine', 'SignifyLineChange', 'DiffChange'}},
+  {GitSignsDeleteLn           = {'GitGutterDeleteLine', 'SignifyLineDelete', 'DiffDelete'}},
 
-  'GitSignsCurrentLineBlame'
-end
+  {GitSignsCurrentLineBlame   = {'NonText'}},
 
-local hls: {GitSignHl:{string}} = {
-  GitSignsAdd    = {'GitGutterAdd'   , 'SignifySignAdd'   , 'DiffAddedGutter'   , 'diffAdded'  , 'DiffAdd'   },
-  GitSignsChange = {'GitGutterChange', 'SignifySignChange', 'DiffModifiedGutter', 'diffChanged', 'DiffChange'},
-  GitSignsDelete = {'GitGutterDelete', 'SignifySignDelete', 'DiffRemovedGutter' , 'diffRemoved', 'DiffDelete'},
+  {GitSignsAddInline          = {'TermCursor'}},
+  {GitSignsDeleteInline       = {'TermCursor'}},
+  {GitSignsChangeInline       = {'TermCursor'}},
 
-  GitSignsAddNr    = {'GitGutterAddLineNr'   , 'GitSignsAdd'   , 'SignifySignAdd'   , 'DiffAddedGutter'   , 'diffAdded'  , 'DiffAdd'   },
-  GitSignsChangeNr = {'GitGutterChangeLineNr', 'GitSignsChange', 'SignifySignChange', 'DiffModifiedGutter', 'diffChanged', 'DiffChange'},
-  GitSignsDeleteNr = {'GitGutterDeleteLineNr', 'GitSignsDelete', 'SignifySignDelete', 'DiffRemovedGutter' , 'diffRemoved', 'DiffDelete'},
+  {GitSignsAddLnInline        = {'GitSignsAddInline'}},
+  {GitSignsChangeLnInline     = {'GitSignsChangeInline'}},
+  {GitSignsDeleteLnInline     = {'GitSignsDeleteInline'}},
 
-  GitSignsAddLn    = {'GitGutterAddLine'   , 'SignifyLineAdd'   , 'DiffAdd'   },
-  GitSignsChangeLn = {'GitGutterChangeLine', 'SignifyLineChange', 'DiffChange'},
-  GitSignsDeleteLn = {'GitGutterDeleteLine', 'SignifyLineDelete', 'DiffDelete'},
+  {GitSignsAddLnVirtLn        = {'GitSignsAddLn'   }},
+  {GitSignsChangeVirtLn       = {'GitSignsChangeLn'}},
+  {GitSignsDeleteVirtLn       = {'GitSignsDeleteLn'}},
 
-  GitSignsCurrentLineBlame = {'NonText'},
+  {GitSignsAddLnVirtLnInLine  = {'GitSignsAddLnInline'   }},
+  {GitSignsChangeVirtLnInLine = {'GitSignsChangeLnInline'}},
+  {GitSignsDeleteVirtLnInLine = {'GitSignsDeleteLnInline'}},
 }
 
 local function is_hl_set(hl_name: string): boolean
    -- TODO: this only works with `set termguicolors`
   local exists, hl = pcall(api.nvim_get_hl_by_name, hl_name, true)
-  local color = hl.foreground or hl.background
+  local color = hl.foreground or hl.background or hl.reverse
   return exists and color ~= nil
 end
 
-local function isGitSignHl(hl: string): boolean
-  return hls[hl as GitSignHl] ~= nil
-end
-
 -- Setup a GitSign* highlight by deriving it from other potentially present
 -- highlights.
-M.setup_highlight = function(hl_name: string)
-  if not isGitSignHl(hl_name) then
-    return
-  end
-
-  if is_hl_set(hl_name) then
-    -- Already defined
-    dprintf('Highlight %s is already defined', hl_name)
-    return
-  end
-
-  for _, d in ipairs(hls[hl_name as GitSignHl]) do
-    if is_hl_set(d) then
-      dprintf('Deriving %s from %s', hl_name, d)
-      vim.cmd(('highlight default link %s %s'):format(hl_name, d))
-      return
+M.setup_highlights = function()
+  for _, hlg in ipairs(hls) do
+    for hl, candidates in pairs(hlg) do
+      if is_hl_set(hl) then
+        -- Already defined
+        dprintf('Highlight %s is already defined', hl)
+      else
+        for _, d in ipairs(candidates) do
+          if is_hl_set(d) then
+            dprintf('Deriving %s from %s', hl, d)
+            vim.cmd(('highlight default link %s %s'):format(hl, d))
+            break
+          end
+        end
+      end
     end
   end
-
-  dprintf('Unable to setup highlight %s', hl_name)
 end
 
 return M
diff --git a/teal/gitsigns/manager.tl b/teal/gitsigns/manager.tl
index 8dbcbc0..34b825b 100644
--- a/teal/gitsigns/manager.tl
+++ b/teal/gitsigns/manager.tl
@@ -22,9 +22,8 @@ local util              = require('gitsigns.util')
 local gs_hunks          = require("gitsigns.hunks")
 local Hunk              = gs_hunks.Hunk
 
-local setup_highlight   = require('gitsigns.highlight').setup_highlight
-
-local config         = require('gitsigns.config').config
+local setup_highlights  = require('gitsigns.highlight').setup_highlights
+local config            = require('gitsigns.config').config
 
 local api = vim.api
 
@@ -184,7 +183,8 @@ M.apply_word_diff = function(bufnr: integer, row: integer)
   for _, hunk in ipairs(cache[bufnr].hunks) do
     if lnum >= hunk.start and lnum <= hunk.vend then
       local size = (#hunk.added.lines +#hunk.removed.lines) / 2
-      local regions = require('gitsigns.diff_int').run_word_diff(hunk.removed.lines, hunk.added.lines)
+      local removed_regions, added_regions = require('gitsigns.diff_int').run_word_diff(hunk.removed.lines, hunk.added.lines)
+      local regions = vim.list_extend(removed_regions or {}, added_regions or {})
       for _, region in ipairs(regions) do
         local line = region[1]
         if lnum == hunk.start + line - size - 1 then
@@ -199,10 +199,11 @@ M.apply_word_diff = function(bufnr: integer, row: integer)
             end
             api.nvim_buf_set_extmark(bufnr, ns, row, scol-1, {
               end_col = ecol-1,
-              hl_group = rtype == 'add'    and 'GitSignsAddLn'
-                      or rtype == 'change' and 'GitSignsChangeLn'
-                      or                       'GitSignsDeleteLn',
-              ephemeral = true
+              hl_group = rtype == 'add'    and 'GitSignsAddLnInline'
+                      or rtype == 'change' and 'GitSignsChangeLnInline'
+                      or                       'GitSignsDeleteLnInline',
+              ephemeral = true,
+              priority = 1000
             })
           end
         end
@@ -249,19 +250,19 @@ local function show_deleted(bufnr: integer)
           if rline > 1 then
             break
           end
-          vline[#vline+1] = { line:sub(last_ecol, scol-1), config.signs.delete.linehl }
-          vline[#vline+1] = { line:sub(scol, ecol-1), 'TermCursor'}
+          vline[#vline+1] = { line:sub(last_ecol, scol-1), 'GitsignsDeleteVirtLn'}
+          vline[#vline+1] = { line:sub(scol, ecol-1), 'GitsignsDeleteVirtLnInline'}
           last_ecol = ecol
         end
       end
 
       if #line > 0 then
-        vline[#vline+1] = { line:sub(last_ecol, -1), config.signs.delete.linehl }
+        vline[#vline+1] = { line:sub(last_ecol, -1), 'GitsignsDeleteVirtLn'}
       end
 
       -- Add extra padding so the entire line is highlighted
       local padding = string.rep(' ', VIRT_LINE_LEN-#line)
-      vline[#vline+1] = { padding, config.signs.delete.linehl }
+      vline[#vline+1] = { padding, 'GitsignsDeleteVirtLn'}
 
       virt_lines[i] = vline
     end
@@ -340,16 +341,6 @@ M.setup_signs_and_highlights = function(redefine: boolean)
   for t, sign_name in pairs(signs.sign_map) do
     local cs = config.signs[t]
 
-    setup_highlight(cs.hl)
-
-    if config.numhl then
-      setup_highlight(cs.numhl)
-    end
-
-    if config.linehl or config.word_diff then
-      setup_highlight(cs.linehl)
-    end
-
     signs.define(sign_name, {
       texthl = cs.hl,
       text   = config.signcolumn and cs.text or nil,
@@ -358,9 +349,8 @@ M.setup_signs_and_highlights = function(redefine: boolean)
     }, redefine)
 
   end
-  if config.current_line_blame then
-    setup_highlight('GitSignsCurrentLineBlame')
-  end
+
+  setup_highlights()
 end
 
 return M
diff --git a/test/gitdir_watcher_spec.lua b/test/gitdir_watcher_spec.lua
index 66116dc..7f50fc7 100644
--- a/test/gitdir_watcher_spec.lua
+++ b/test/gitdir_watcher_spec.lua
@@ -33,11 +33,10 @@ describe('gitdir_watcher', function()
   it('can follow moved files', function()
     setup_test_repo()
     setup_gitsigns(test_config)
+    command('Gitsigns clear_debug')
     edit(test_file)
 
     match_debug_messages {
-      "run_job: git --no-pager --version",
-      'run_job: git --no-pager rev-parse --show-toplevel --absolute-git-dir --abbrev-ref HEAD',
       'attach(1): Attaching (trigger=BufRead)',
       p"run_job: git .* config user.name",
       "run_job: git --no-pager rev-parse --show-toplevel --absolute-git-dir --abbrev-ref HEAD",
diff --git a/test/gitsigns_spec.lua b/test/gitsigns_spec.lua
index 13c7ea6..495d081 100644
--- a/test/gitsigns_spec.lua
+++ b/test/gitsigns_spec.lua
@@ -107,12 +107,11 @@ describe('gitsigns', function()
 
   it('can open files not in a git repo', function()
     setup_gitsigns(config)
+    command('Gitsigns clear_debug')
     local tmpfile = os.tmpname()
     edit(tmpfile)
 
     match_debug_messages {
-      'run_job: git --no-pager --version',
-      'run_job: git --no-pager rev-parse --show-toplevel --absolute-git-dir --abbrev-ref HEAD',
       'attach(1): Attaching (trigger=BufRead)',
       p'run_job: git .* config user.name',
       'run_job: git --no-pager rev-parse --show-toplevel --absolute-git-dir --abbrev-ref HEAD',
@@ -158,11 +157,10 @@ describe('gitsigns', function()
     end)
 
     it('does not attach inside .git', function()
+      command("Gitsigns clear_debug")
       edit(scratch..'/.git/index')
 
       match_debug_messages {
-        'run_job: git --no-pager --version',
-        'run_job: git --no-pager rev-parse --show-toplevel --absolute-git-dir --abbrev-ref HEAD',
         'attach(1): Attaching (trigger=BufRead)',
         'new: In git dir',
         'attach(1): Empty git obj'
@@ -170,6 +168,7 @@ describe('gitsigns', function()
     end)
 
     it('doesn\'t attach to ignored files', function()
+      command("Gitsigns clear_debug")
       write_to_file(scratch..'/.gitignore', {'dummy_ignored.txt'})
 
       local ignored_file = scratch.."/dummy_ignored.txt"
@@ -178,8 +177,6 @@ describe('gitsigns', function()
       edit(ignored_file)
 
       match_debug_messages {
-        'run_job: git --no-pager --version',
-        'run_job: git --no-pager rev-parse --show-toplevel --absolute-git-dir --abbrev-ref HEAD',
         'attach(1): Attaching (trigger=BufRead)',
         p'run_job: git .* config user.name',
         'run_job: git --no-pager rev-parse --show-toplevel --absolute-git-dir --abbrev-ref HEAD',
@@ -191,11 +188,10 @@ describe('gitsigns', function()
     end)
 
     it('doesn\'t attach to non-existent files', function()
+      command("Gitsigns clear_debug")
       edit(newfile)
 
       match_debug_messages {
-        'run_job: git --no-pager --version',
-        'run_job: git --no-pager rev-parse --show-toplevel --absolute-git-dir --abbrev-ref HEAD',
         'attach(1): Attaching (trigger=BufNewFile)',
         p'run_job: git .* config user.name',
         'run_job: git --no-pager rev-parse --show-toplevel --absolute-git-dir --abbrev-ref HEAD',
@@ -207,11 +203,10 @@ describe('gitsigns', function()
     end)
 
     it('doesn\'t attach to non-existent files with non-existent sub-dirs', function()
+      command("Gitsigns clear_debug")
       edit(scratch..'/does/not/exist')
 
       match_debug_messages {
-        'run_job: git --no-pager --version',
-        'run_job: git --no-pager rev-parse --show-toplevel --absolute-git-dir --abbrev-ref HEAD',
         'attach(1): Attaching (trigger=BufNewFile)',
         'attach(1): Not a path',
       }
@@ -221,10 +216,9 @@ describe('gitsigns', function()
     end)
 
     it('can run copen', function()
+      command("Gitsigns clear_debug")
       command("copen")
       match_debug_messages {
-        'run_job: git --no-pager --version',
-        'run_job: git --no-pager rev-parse --show-toplevel --absolute-git-dir --abbrev-ref HEAD',
         'attach(2): Attaching (trigger=BufRead)',
         'attach(2): Non-normal buffer',
       }
@@ -340,11 +334,10 @@ describe('gitsigns', function()
           return false
         end
       ]])
+      command("Gitsigns clear_debug")
 
       edit(test_file)
       match_debug_messages {
-        'run_job: git --no-pager --version',
-        'run_job: git --no-pager rev-parse --show-toplevel --absolute-git-dir --abbrev-ref HEAD',
         'attach(1): Attaching (trigger=BufRead)',
         p'run_job: git .* config user.name',
         'run_job: git --no-pager rev-parse --show-toplevel --absolute-git-dir --abbrev-ref HEAD',
@@ -455,10 +448,9 @@ describe('gitsigns', function()
 
       it('attaches to newly created files', function()
         setup_gitsigns(config)
+        command('Gitsigns clear_debug')
         edit(newfile)
         match_debug_messages{
-          'run_job: git --no-pager --version',
-          'run_job: git --no-pager rev-parse --show-toplevel --absolute-git-dir --abbrev-ref HEAD',
           'attach(1): Attaching (trigger=BufNewFile)',
           'run_job: git --no-pager config user.name',
           'run_job: git --no-pager rev-parse --show-toplevel --absolute-git-dir --abbrev-ref HEAD',
@@ -656,6 +648,7 @@ describe('gitsigns', function()
     write_to_file(scratch..'/t3.txt', {'hello lewis'})
 
     setup_gitsigns(config)
+    command('Gitsigns clear_debug')
 
     helpers.exc_exec("vimgrep ben "..scratch..'/*')
 
@@ -664,8 +657,6 @@ describe('gitsigns', function()
     }}}
 
     eq({
-      'run_job: git --no-pager --version',
-      'run_job: git --no-pager rev-parse --show-toplevel --absolute-git-dir --abbrev-ref HEAD',
       'attach(2): attaching is disabled',
       'attach(3): attaching is disabled',
       'attach(4): attaching is disabled',
diff --git a/types/types.d.tl b/types/types.d.tl
index b1d1c65..d6ddbc5 100644
--- a/types/types.d.tl
+++ b/types/types.d.tl
@@ -384,7 +384,7 @@ global record vim
 
   in_fast_event: function(): boolean
 
-  list_extend: function({any}, {any}, integer, integer)
+  list_extend: function<T>({T}, {T}, integer, integer): {T}
   list_slice: function<T>({T}, integer, integer): {T}
 
   record keymap