diff --git a/helix-term/src/ui/picker.rs b/helix-term/src/ui/picker.rs
index 118dafa77..a7639ab57 100644
--- a/helix-term/src/ui/picker.rs
+++ b/helix-term/src/ui/picker.rs
@@ -614,16 +614,22 @@ impl<T: 'static + Send + Sync, D: 'static + Send + Sync> Picker<T, D> {
                             (size, _) if size > MAX_FILE_SIZE_FOR_PREVIEW => {
                                 CachedPreview::LargeFile
                             }
-                            _ => Document::open(&path, None, None, editor.config.clone())
-                                .map(|doc| {
-                                    // Asynchronously highlight the new document
-                                    helix_event::send_blocking(
-                                        &self.preview_highlight_handler,
-                                        path.clone(),
-                                    );
-                                    CachedPreview::Document(Box::new(doc))
-                                })
-                                .unwrap_or(CachedPreview::NotFound),
+                            _ => Document::open(
+                                &path,
+                                None,
+                                None,
+                                editor.config.clone(),
+                                &editor.diff_providers,
+                            )
+                            .map(|doc| {
+                                // Asynchronously highlight the new document
+                                helix_event::send_blocking(
+                                    &self.preview_highlight_handler,
+                                    path.clone(),
+                                );
+                                CachedPreview::Document(Box::new(doc))
+                            })
+                            .unwrap_or(CachedPreview::NotFound),
                         },
                     )
                     .unwrap_or(CachedPreview::NotFound);
diff --git a/helix-term/src/ui/statusline.rs b/helix-term/src/ui/statusline.rs
index 7437cbd07..291bb94fb 100644
--- a/helix-term/src/ui/statusline.rs
+++ b/helix-term/src/ui/statusline.rs
@@ -143,6 +143,7 @@ where
         helix_view::editor::StatusLineElement::FileBaseName => render_file_base_name,
         helix_view::editor::StatusLineElement::FileName => render_file_name,
         helix_view::editor::StatusLineElement::FileAbsolutePath => render_file_absolute_path,
+        helix_view::editor::StatusLineElement::FileRelativePath => render_file_relative_path,
         helix_view::editor::StatusLineElement::FileModificationIndicator => {
             render_file_modification_indicator
         }
@@ -447,6 +448,27 @@ where
     write(context, title, None);
 }
 
+fn render_file_relative_path<F>(context: &mut RenderContext, write: F)
+where
+    F: Fn(&mut RenderContext, String, Option<Style>) + Copy,
+{
+    let title = {
+        let path = context.doc.path();
+        let root = &context.doc.repo_root_dir;
+        let path = path
+            .as_ref()
+            .map(|p| {
+                p.strip_prefix(root.as_path())
+                    .unwrap_or(p)
+                    .to_string_lossy()
+            })
+            .unwrap_or_else(|| SCRATCH_BUFFER_NAME.into());
+        format!(" {} ", path)
+    };
+
+    write(context, title, None);
+}
+
 fn render_file_modification_indicator<F>(context: &mut RenderContext, write: F)
 where
     F: Fn(&mut RenderContext, String, Option<Style>) + Copy,
diff --git a/helix-vcs/src/git.rs b/helix-vcs/src/git.rs
index 78e582436..f60925be1 100644
--- a/helix-vcs/src/git.rs
+++ b/helix-vcs/src/git.rs
@@ -1,8 +1,9 @@
 use anyhow::{bail, Context, Result};
 use arc_swap::ArcSwap;
 use gix::filter::plumbing::driver::apply::Delay;
+use gix::path::env;
 use std::io::Read;
-use std::path::Path;
+use std::path::{Path, PathBuf};
 use std::sync::Arc;
 
 use gix::bstr::ByteSlice;
@@ -117,6 +118,24 @@ fn open_repo(path: &Path) -> Result<ThreadSafeRepository> {
     Ok(res)
 }
 
+pub fn get_repo_root_dir(file: &Path) -> Result<Arc<PathBuf>> {
+    debug_assert!(!file.exists() || file.is_file());
+    debug_assert!(file.is_absolute());
+
+    let repo_dir = file.parent().context("file has no parent directory")?;
+    Ok(Arc::new(match open_repo(repo_dir) {
+        Ok(repo) => repo
+            .work_dir()
+            .unwrap_or_else(|| Path::new("/"))
+            .to_path_buf(),
+
+        Err(_) => match env::home_dir() {
+            Some(p) => p,
+            None => PathBuf::from("/"),
+        },
+    }))
+}
+
 /// Emulates the result of running `git status` from the command line.
 fn status(repo: &Repository, f: impl Fn(Result<FileChange>) -> bool) -> Result<()> {
     let work_dir = repo
diff --git a/helix-vcs/src/lib.rs b/helix-vcs/src/lib.rs
index 539be779a..c93642bab 100644
--- a/helix-vcs/src/lib.rs
+++ b/helix-vcs/src/lib.rs
@@ -66,6 +66,15 @@ impl DiffProviderRegistry {
             }
         });
     }
+    pub fn get_repo_root(&self, cwd: &Path) -> Arc<PathBuf> {
+        self.providers
+            .iter()
+            .find_map(|provider| match provider.get_repo_root_dir(cwd) {
+                Ok(res) => Some(res),
+                Err(_) => None,
+            })
+            .unwrap_or_else(|| Arc::new(PathBuf::from("/")))
+    }
 }
 
 impl Default for DiffProviderRegistry {
@@ -119,4 +128,12 @@ impl DiffProvider {
             Self::None => bail!("No diff support compiled in"),
         }
     }
+
+    fn get_repo_root_dir(&self, cwd: &Path) -> Result<Arc<PathBuf>> {
+        match self {
+            #[cfg(feature = "git")]
+            DiffProvider::Git => git::get_repo_root_dir(cwd),
+            DiffProvider::None => bail!("No diff support compiled in"),
+        }
+    }
 }
diff --git a/helix-view/src/document.rs b/helix-view/src/document.rs
index 489555112..a3ed0e03a 100644
--- a/helix-view/src/document.rs
+++ b/helix-view/src/document.rs
@@ -191,6 +191,8 @@ pub struct Document {
     pub focused_at: std::time::Instant,
 
     pub readonly: bool,
+
+    pub repo_root_dir: Arc<PathBuf>,
 }
 
 /// Inlay hints for a single `(Document, View)` combo.
@@ -683,6 +685,7 @@ impl Document {
             focused_at: std::time::Instant::now(),
             readonly: false,
             jump_labels: HashMap::new(),
+            repo_root_dir: Arc::new(PathBuf::from("/")),
         }
     }
 
@@ -700,6 +703,7 @@ impl Document {
         encoding: Option<&'static Encoding>,
         config_loader: Option<Arc<ArcSwap<syntax::Loader>>>,
         config: Arc<dyn DynAccess<Config>>,
+        provider_registry: &DiffProviderRegistry,
     ) -> Result<Self, DocumentOpenError> {
         // If the path is not a regular file (e.g.: /dev/random) it should not be opened.
         if path
@@ -729,6 +733,8 @@ impl Document {
 
         doc.detect_indent_and_line_ending();
 
+        doc.repo_root_dir = provider_registry.get_repo_root(path);
+
         Ok(doc)
     }
 
diff --git a/helix-view/src/editor.rs b/helix-view/src/editor.rs
index ba7337f22..d22062f83 100644
--- a/helix-view/src/editor.rs
+++ b/helix-view/src/editor.rs
@@ -530,6 +530,9 @@ pub enum StatusLineElement {
     /// The file absolute path
     FileAbsolutePath,
 
+    /// The file relative path base on repo or home dir
+    FileRelativePath,
+
     // The file modification indicator
     FileModificationIndicator,
 
@@ -1698,6 +1701,7 @@ impl Editor {
                 None,
                 Some(self.syn_loader.clone()),
                 self.config.clone(),
+                &self.diff_providers,
             )?;
 
             let diagnostics =