diff --git a/sample_files/compare.expected b/sample_files/compare.expected
index a5e634c12b..fbf9541077 100644
--- a/sample_files/compare.expected
+++ b/sample_files/compare.expected
@@ -58,6 +58,12 @@ f44f0dffe3617ddafca3d65e94a21613  -
 sample_files/devicetree_1.dts sample_files/devicetree_2.dts
 64b33c6d65dbc85777ee30cf3893fbdb  -
 
+sample_files/displaypanic_a_1.txt sample_files/displaypanic_a_2.txt
+34442b044ab320973fc989efda46e9d6  -
+
+sample_files/displaypanic_b_1.nix sample_files/displaypanic_b_2.nix
+474dcbe72b3c62d6acc5eb8ed80da52a  -
+
 sample_files/elisp_1.el sample_files/elisp_2.el
 98571b62f7407e90e9441e4f47ea85ae  -
 
diff --git a/sample_files/displaypanic_a_1.txt b/sample_files/displaypanic_a_1.txt
new file mode 100644
index 0000000000..0db4625e39
--- /dev/null
+++ b/sample_files/displaypanic_a_1.txt
@@ -0,0 +1,14 @@
+
+
+exit:
+    mov x0, #0
+    mov x8, #93
+    svc #0
+
+
+
+
+
+
+
+
diff --git a/sample_files/displaypanic_a_2.txt b/sample_files/displaypanic_a_2.txt
new file mode 100644
index 0000000000..6c93583df1
--- /dev/null
+++ b/sample_files/displaypanic_a_2.txt
@@ -0,0 +1,13 @@
+
+
+
+
+exit_success:
+    mov x0, #0
+    mov x8, #93
+    svc #0
+
+exit_error:
+    mov x0, #1
+    mov x8, #93
+    svc #0
diff --git a/sample_files/displaypanic_b_1.nix b/sample_files/displaypanic_b_1.nix
new file mode 100644
index 0000000000..f77250eeb2
--- /dev/null
+++ b/sample_files/displaypanic_b_1.nix
@@ -0,0 +1,40 @@
+{
+  flake.darwinModules.communication = {
+    homebrew.casks = [
+      "signal"
+      "vesktop"
+      "whatsapp"
+      "zulip"
+    ];
+  };
+
+  flake.homeModules.communication =
+    {
+      osConfig,
+      lib,
+      pkgs,
+      ...
+    }:
+    let
+      inherit (lib.lists) optionals;
+      isLinux = osConfig.nixpkgs.hostPlatform.isLinux;
+    in
+    {
+      packages = [
+        pkgs.cinny-desktop
+        pkgs.thunderbird
+      ]
+      ++ optionals isLinux [
+        pkgs.signal-desktop
+        (
+          pkgs.discord.overrideAttrs
+          (old: {
+            postFixup = ''
+              wrapProgram $out/opt/Discord/Discord \
+                --add-flags "x"
+            '';
+          })
+        )
+      ];
+    };
+}
diff --git a/sample_files/displaypanic_b_2.nix b/sample_files/displaypanic_b_2.nix
new file mode 100644
index 0000000000..c7285b117f
--- /dev/null
+++ b/sample_files/displaypanic_b_2.nix
@@ -0,0 +1,39 @@
+{
+  flake.darwinModules.discord = {
+    homebrew.casks = [ "vesktop" ];
+  };
+
+  flake.darwinModules.signal-desktop = {
+    homebrew.casks = [ "signal" ];
+  };
+
+  flake.darwinModules.whatsapp = {
+    homebrew.casks = [ "whatsapp" ];
+  };
+
+  flake.darwinModules.zulip = {
+    homebrew.casks = [ "zulip" ];
+  };
+
+  flake.homeModules.discord =
+    {
+      osConfig,
+      lib,
+      pkgs,
+      ...
+    }:
+    let
+      inherit (lib.lists) optional;
+    in
+    {
+      packages = optional osConfig.nixpkgs.hostPlatform.isLinux (
+        pkgs.discord.overrideAttrs
+          (old: {
+            postFixup = ''
+              wrapProgram $out/opt/Discord/Discord \
+                --add-flags "x"
+            '';
+          })
+      );
+    };
+}
diff --git a/src/display/hunks.rs b/src/display/hunks.rs
index 6e8f3688c1..d14d83e769 100644
--- a/src/display/hunks.rs
+++ b/src/display/hunks.rs
@@ -577,11 +577,16 @@ fn matched_novel_lines(
                     true
                 };
                 if should_append {
-                    lines.push((
-                        Some(self_line),
-                        next_opposite(self_line, &opposite_to_lhs, highest_rhs),
-                    ));
+                    let opposite = next_opposite(self_line, &opposite_to_lhs, highest_rhs);
+                    lines.push((Some(self_line), opposite));
                     highest_lhs = Some(self_line);
+                    // Also update highest_rhs if we used an RHS line as opposite,
+                    // to prevent that RHS line from being added again when processed.
+                    if let Some(opp) = opposite {
+                        if highest_rhs.map_or(true, |h| opp > h) {
+                            highest_rhs = Some(opp);
+                        }
+                    }
                 }
             }
             Side::Right => {
@@ -591,11 +596,16 @@ fn matched_novel_lines(
                     true
                 };
                 if should_append {
-                    lines.push((
-                        next_opposite(self_line, &opposite_to_rhs, highest_rhs),
-                        Some(self_line),
-                    ));
+                    let opposite = next_opposite(self_line, &opposite_to_rhs, highest_lhs);
+                    lines.push((opposite, Some(self_line)));
                     highest_rhs = Some(self_line);
+                    // Also update highest_lhs if we used an LHS line as opposite,
+                    // to prevent that LHS line from being added again when processed.
+                    if let Some(opp) = opposite {
+                        if highest_lhs.map_or(true, |h| opp > h) {
+                            highest_lhs = Some(opp);
+                        }
+                    }
                 }
             }
         }
@@ -694,6 +704,7 @@ mod tests {
 
     use super::*;
     use crate::{
+        display::test_util::{novel, unchanged},
         hash::DftHashMap,
         syntax::{MatchKind, TokenKind},
     };
@@ -868,4 +879,31 @@ mod tests {
             ]
         );
     }
+
+    #[test]
+    fn test_matched_novel_lines_opposite_threshold() {
+        // LHS novels at lines 3, 6; RHS novel at line 2, then at line 10
+        // RHS line 10 has LHS opposites {4, 8}
+        // Should pick LHS 8 (first > highest_lhs=6), not LHS 4
+        let lhs_mps = [novel(3), novel(6), unchanged(4, 10), unchanged(8, 10)];
+        let rhs_mps = [novel(2), unchanged(10, 4), unchanged(10, 8), novel(10)];
+
+        let result = matched_novel_lines(&lhs_mps, &rhs_mps);
+        let (lhs, _) = result.iter().find(|(_, r)| *r == Some(10.into())).unwrap();
+        assert_eq!(*lhs, Some(8.into()));
+    }
+
+    #[test]
+    fn test_matched_novel_lines_no_duplicate_lines() {
+        // LHS novel at line 1 pairs with RHS line 2 as opposite.
+        // RHS novel at line 2 should not create another entry.
+        let lhs_mps = [novel(1), unchanged(1, 2)];
+        let rhs_mps = [novel(2), unchanged(2, 1)];
+
+        let result = matched_novel_lines(&lhs_mps, &rhs_mps);
+
+        // RHS line 2 should appear exactly once
+        let rhs_2_count = result.iter().filter(|(_, r)| *r == Some(2.into())).count();
+        assert_eq!(rhs_2_count, 1);
+    }
 }
diff --git a/src/display/mod.rs b/src/display/mod.rs
index 8604d52d9b..dfbff355ae 100644
--- a/src/display/mod.rs
+++ b/src/display/mod.rs
@@ -4,3 +4,6 @@ pub(crate) mod inline;
 pub(crate) mod json;
 pub(crate) mod side_by_side;
 pub(crate) mod style;
+
+#[cfg(test)]
+pub(crate) mod test_util;
diff --git a/src/display/side_by_side.rs b/src/display/side_by_side.rs
index 362db43bfd..c3a07a4460 100644
--- a/src/display/side_by_side.rs
+++ b/src/display/side_by_side.rs
@@ -545,7 +545,7 @@ pub(crate) fn print(
     }
 
     let matched_lines = all_matched_lines_filled(lhs_mps, rhs_mps, &lhs_lines, &rhs_lines);
-    let mut matched_lines_to_print = &matched_lines[..];
+    let matched_lines_to_print = &matched_lines[..];
 
     let mut lhs_max_visible_line = 1.into();
     let mut rhs_max_visible_line = 1.into();
@@ -612,12 +612,11 @@ pub(crate) fn print(
             display_options.num_context_lines as usize,
         );
         let aligned_lines = &matched_lines_to_print[start_i..end_i];
-        // We iterate through hunks in order, so we know the next hunk
-        // must appear after start_i. This makes
-        // `matched_lines_indexes_for_hunk` faster on later
-        // iterations, and this function is hot on large textual
-        // diffs.
-        matched_lines_to_print = &matched_lines_to_print[start_i..];
+        // Note: We previously sliced matched_lines_to_print here as an
+        // optimization, assuming hunks appear in order. However, hunks
+        // from matched_novel_lines may not be strictly ordered by their
+        // position in matched_lines when there are interleaved LHS-only
+        // and RHS-only novel sections. See issue #770.
 
         let no_lhs_changes = hunk.novel_lhs.is_empty();
         let no_rhs_changes = hunk.novel_rhs.is_empty();
@@ -782,6 +781,10 @@ mod tests {
 
     use super::*;
     use crate::{
+        display::{
+            hunks::matched_pos_to_hunks,
+            test_util::{novel, unchanged},
+        },
         options::DEFAULT_TERMINAL_WIDTH,
         parse::guess_language::Language,
         syntax::{AtomKind, MatchKind, TokenKind},
@@ -907,4 +910,39 @@ mod tests {
             &rhs_mps,
         );
     }
+
+    /// Regression test for issue #770: slicing optimization assumed hunks appear
+    /// in matched_lines order, but LHS-only hunks may appear before RHS-only hunks
+    /// even when RHS lines come first. Would panic before fix.
+    #[test]
+    fn test_display_hunks_out_of_order_issue_770() {
+        // LHS novels at 10-12, RHS novels at 3-5. Hunks: [LHS, RHS] but
+        // matched_lines has RHS first. Slicing after LHS hunk would remove RHS lines.
+        let lhs_src = (0..15)
+            .map(|i| format!("L{i}"))
+            .collect::<Vec<_>>()
+            .join("\n");
+        let rhs_src = (0..10)
+            .map(|i| format!("R{i}"))
+            .collect::<Vec<_>>()
+            .join("\n");
+
+        let lhs_mps = vec![unchanged(0, 0), novel(10), novel(11), novel(12)];
+        let rhs_mps = vec![unchanged(0, 0), novel(3), novel(4), novel(5)];
+
+        let hunks = matched_pos_to_hunks(&lhs_mps, &rhs_mps);
+
+        // Would panic before fix with "Hunk lines should be present in matched lines"
+        print(
+            &hunks,
+            &DisplayOptions::default(),
+            "t.txt",
+            None,
+            &FileFormat::PlainText,
+            &lhs_src,
+            &rhs_src,
+            &lhs_mps,
+            &rhs_mps,
+        );
+    }
 }
diff --git a/src/display/test_util.rs b/src/display/test_util.rs
new file mode 100644
index 0000000000..1f182f0b8f
--- /dev/null
+++ b/src/display/test_util.rs
@@ -0,0 +1,36 @@
+//! Test helpers for creating [`MatchedPos`] values with minimal boilerplate.
+
+use line_numbers::SingleLineSpan;
+
+use crate::parse::syntax::{MatchKind, MatchedPos, TokenKind};
+
+/// Creates a [`SingleLineSpan`] at the given line with column range 0..1.
+pub(crate) fn span(line: u32) -> SingleLineSpan {
+    SingleLineSpan {
+        line: line.into(),
+        start_col: 0,
+        end_col: 1,
+    }
+}
+
+/// Creates a novel [`MatchedPos`] at the given line.
+pub(crate) fn novel(line: u32) -> MatchedPos {
+    MatchedPos {
+        kind: MatchKind::Novel {
+            highlight: TokenKind::Delimiter,
+        },
+        pos: span(line),
+    }
+}
+
+/// Creates an unchanged [`MatchedPos`] linking `self_line` to `opposite_line`.
+pub(crate) fn unchanged(self_line: u32, opposite_line: u32) -> MatchedPos {
+    MatchedPos {
+        kind: MatchKind::UnchangedToken {
+            highlight: TokenKind::Delimiter,
+            self_pos: vec![span(self_line)],
+            opposite_pos: vec![span(opposite_line)],
+        },
+        pos: span(self_line),
+    }
+}