diff --git a/package.json b/package.json
index 97e8e35a..77ca7091 100644
--- a/package.json
+++ b/package.json
@@ -23,9 +23,9 @@
   },
   "main": "./lib",
   "scripts": {
-    "test": "grunt"
+    "prepublish": "grunt build",
+    "test": "grunt test"
   },
-  "dependencies": {},
   "devDependencies": {
     "async": "^1.4.2",
     "babel": "^5.8.23",
@@ -60,6 +60,5 @@
     "semver": "^5.0.3",
     "webpack": "^1.12.2",
     "webpack-dev-server": "^1.12.0"
-  },
-  "optionalDependencies": {}
+  }
 }
diff --git a/src/patch/apply.js b/src/patch/apply.js
index c86cae26..d4ce8b77 100644
--- a/src/patch/apply.js
+++ b/src/patch/apply.js
@@ -20,19 +20,21 @@ export function applyPatch(source, uniDiff, options = {}) {
       compareLine = options.compareLine || ((lineNumber, line, operation, patchContent) => line === patchContent),
       errorCount = 0,
       fuzzFactor = options.fuzzFactor || 0,
+      minLine = 0,
+      offset = 0,
 
       removeEOFNL,
       addEOFNL;
 
-  for (let i = 0; i < hunks.length; i++) {
-    let hunk = hunks[i],
-        toPos = hunk.newStart - 1;
-
-    // Sanity check the input string. Bail if we don't match.
+  /**
+   * Checks if the hunk exactly fits on the provided location
+   */
+  function hunkFits(hunk, toPos) {
     for (let j = 0; j < hunk.lines.length; j++) {
       let line = hunk.lines[j],
           operation = line[0],
           content = line.substr(1);
+
       if (operation === ' ' || operation === '-') {
         // Context sanity check
         if (!compareLine(toPos + 1, lines[toPos], operation, content)) {
@@ -42,7 +44,90 @@ export function applyPatch(source, uniDiff, options = {}) {
             return false;
           }
         }
+        toPos++;
       }
+    }
+
+    return true;
+  }
+
+  function distanceIterator(toPos, minLine, maxLine) {
+    let wantForward = true,
+        backwardExhausted = false,
+        forwardExhausted = false,
+        localOffset = 1;
+
+    return function iterator() {
+      if (wantForward && !forwardExhausted) {
+        if (backwardExhausted) {
+          localOffset++;
+        } else {
+          wantForward = false;
+        }
+
+        // Check if trying to fit beyond text length, and if not, check it fits
+        // after offset location (or desired location on first iteration)
+        if (toPos + localOffset <= maxLine) {
+          return localOffset;
+        }
+
+        forwardExhausted = true;
+      }
+
+      if (!backwardExhausted) {
+        if (!forwardExhausted) {
+          wantForward = true;
+        }
+
+        // Check if trying to fit before text beginning, and if not, check it fits
+        // before offset location
+        if (minLine <= toPos - localOffset) {
+          return -localOffset++;
+        }
+
+        backwardExhausted = true;
+        return iterator();
+      }
+
+      // We tried to fit hunk before text beginning and beyond text lenght, then
+      // hunk can't fit on the text. Return undefined
+    };
+  }
+
+  // Search best fit offsets for each hunk based on the previous ones
+  for (let i = 0; i < hunks.length; i++) {
+    let hunk = hunks[i],
+        maxLine = lines.length - hunk.oldLines,
+        localOffset = 0,
+        toPos = offset + hunk.oldStart - 1;
+
+    let iterator = distanceIterator(toPos, minLine, maxLine);
+
+    for (; localOffset !== undefined; localOffset = iterator()) {
+      if (hunkFits(hunk, toPos + localOffset)) {
+        hunk.offset = offset += localOffset;
+        break;
+      }
+    }
+
+    if (localOffset === undefined) {
+      return false;
+    }
+
+    // Set lower text limit to end of the current hunk, so next ones don't try
+    // to fit over already patched text
+    minLine = hunk.offset + hunk.oldStart + hunk.oldLines;
+  }
+
+  // Apply patch hunks
+  for (let i = 0; i < hunks.length; i++) {
+    let hunk = hunks[i],
+        toPos = hunk.offset + hunk.newStart - 1;
+
+    for (let j = 0; j < hunk.lines.length; j++) {
+      let line = hunk.lines[j],
+          operation = line[0],
+          content = line.substr(1);
 
       if (operation === ' ') {
         toPos++;
@@ -84,7 +169,7 @@ export function applyPatches(uniDiff, options) {
   function processIndex() {
     let index = uniDiff[currentIndex++];
     if (!index) {
-      options.complete();
+      return options.complete();
     }
 
     options.loadFile(index, function(err, data) {
diff --git a/src/patch/parse.js b/src/patch/parse.js
index e00619a6..4d0466db 100644
--- a/src/patch/parse.js
+++ b/src/patch/parse.js
@@ -9,13 +9,13 @@ export function parsePatch(uniDiff, options = {}) {
 
     // Ignore any leading junk
     while (i < diffstr.length) {
-      if ((/^Index:/.test(diffstr[i])) || (/^@@/.test(diffstr[i]))) {
+      if (/^(Index:|diff -r|@@)/.test(diffstr[i])) {
         break;
       }
       i++;
     }
 
-    let header = (/^Index: (.*)/.exec(diffstr[i]));
+    let header = (/^(?:Index:|diff(?: -r \w+)+) (.*)/.exec(diffstr[i]));
     if (header) {
       index.index = header[1];
       i++;
@@ -35,7 +35,7 @@ export function parsePatch(uniDiff, options = {}) {
     index.hunks = [];
 
     while (i < diffstr.length) {
-      if (/^Index:/.test(diffstr[i])) {
+      if (/^(Index:|diff -r)/.test(diffstr[i])) {
         break;
       } else if (/^@@/.test(diffstr[i])) {
         index.hunks.push(parseHunk());
diff --git a/test/patch/apply.js b/test/patch/apply.js
index d15d8d0f..23675315 100644
--- a/test/patch/apply.js
+++ b/test/patch/apply.js
@@ -374,6 +374,48 @@ describe('patch/apply', function() {
           + 'line5\n');
     });
 
+    it('should succeed when hunk needs a negative offset', function() {
+      expect(applyPatch(
+          'line1\n'
+          + 'line3\n'
+          + 'line4\n'
+          + 'line5\n',
+
+          '--- test\theader1\n'
+          + '+++ test\theader2\n'
+          + '@@ -3,2 +3,3 @@\n'
+          + ' line1\n'
+          + '+line2\n'
+          + ' line3\n'))
+        .to.equal(
+          'line1\n'
+          + 'line2\n'
+          + 'line3\n'
+          + 'line4\n'
+          + 'line5\n');
+    });
+
+    it('should succeed when hunk needs a positive offset', function() {
+      expect(applyPatch(
+          'line1\n'
+          + 'line2\n'
+          + 'line3\n'
+          + 'line5\n',
+
+          '--- test\theader1\n'
+          + '+++ test\theader2\n'
+          + '@@ -1,2 +1,3 @@\n'
+          + ' line3\n'
+          + '+line4\n'
+          + ' line5\n'))
+        .to.equal(
+          'line1\n'
+          + 'line2\n'
+          + 'line3\n'
+          + 'line4\n'
+          + 'line5\n');
+    });
+
     it('should allow custom line comparison', function() {
       expect(applyPatch(
           'line2\n'