diff --git a/cortex/tools/__init__.py b/cortex/tools/__init__.py
index 6f9efdb..b2e5181 100644
--- a/cortex/tools/__init__.py
+++ b/cortex/tools/__init__.py
@@ -35,6 +35,7 @@ from tools.files import (
     project_file_list  as _project_file_list,
     file_stat          as _file_stat,
     file_grep          as _file_grep,
+    file_diff          as _file_diff,
     file_syntax_check  as _file_syntax_check,
     file_read          as _file_read,
     file_list          as _file_list,
@@ -108,7 +109,7 @@ import tools.homeassistant as _mod_homeassistant
 
 TOOL_CATEGORIES: dict[str, list[str]] = {
     "Web":              ["web_search", "http_fetch", "web_read", "http_post"],
-    "Project Files":    ["project_file_read", "project_file_list", "file_stat", "file_grep", "file_syntax_check"],
+    "Project Files":    ["project_file_read", "project_file_list", "file_stat", "file_grep", "file_diff", "file_syntax_check"],
     "System Files":     ["file_read", "file_list", "file_write", "session_read", "session_search"],
     "Shell":            ["shell_exec", "claude_allow_dir"],
     "System":           ["cortex_restart", "cortex_logs", "cortex_status", "cortex_update"],
@@ -151,6 +152,7 @@ _CALLABLES: dict[str, callable] = {
     "project_file_list":         _project_file_list,
     "file_stat":                 _file_stat,
     "file_grep":                 _file_grep,
+    "file_diff":                 _file_diff,
     "file_syntax_check":         _file_syntax_check,
     "file_read":                 _file_read,
     "file_list":                 _file_list,
@@ -247,6 +249,7 @@ TOOL_RISK: dict[str, str] = {
     "project_file_list":         "low",
     "file_stat":                 "low",
     "file_grep":                 "low",
+    "file_diff":                 "low",
     "file_syntax_check":         "low",
 
     # System Files — reads beyond project scope are medium; writes are high
diff --git a/cortex/tools/files.py b/cortex/tools/files.py
index ca95288..30ef348 100644
--- a/cortex/tools/files.py
+++ b/cortex/tools/files.py
@@ -339,6 +339,45 @@ def _sync_file_grep(path_str: str, pattern: str, context_lines: int, recursive:
     return header + "\n\n" + "\n\n".join(sections)
 
 
+async def file_diff(path_a: str, path_b: str) -> str:
+    """Compare two files and return a unified diff."""
+    return await asyncio.to_thread(_sync_file_diff, path_a, path_b)
+
+
+def _sync_file_diff(path_a: str, path_b: str) -> str:
+    try:
+        resolved_a = Path(path_a).expanduser().resolve()
+        resolved_b = Path(path_b).expanduser().resolve()
+    except Exception as e:
+        return f"Invalid path: {e}"
+
+    for resolved in (resolved_a, resolved_b):
+        if not _is_project_allowed(resolved):
+            return f"Access denied: {resolved}"
+        if not resolved.exists():
+            return f"File not found: {resolved}"
+        if not resolved.is_file():
+            return f"Not a file: {resolved}"
+
+    try:
+        result = subprocess.run(
+            ["diff", "-u", str(resolved_a), str(resolved_b)],
+            capture_output=True, text=True, timeout=15,
+        )
+        if result.returncode == 0:
+            return f"Files are identical: {resolved_a.name} vs {resolved_b.name}"
+        output = result.stdout
+        if not output:
+            return f"diff returned no output (exit {result.returncode}): {result.stderr}"
+        if len(output) > _MAX_BYTES:
+            output = output[:_MAX_BYTES] + "\n… [truncated]"
+        return output
+    except subprocess.TimeoutExpired:
+        return "Timeout running diff"
+    except Exception as e:
+        return f"Error: {e}"
+
+
 async def file_syntax_check(path: str) -> str:
     """Check syntax of a Python (.py) or JSON (.json) file."""
     return await asyncio.to_thread(_sync_file_syntax_check, path)
@@ -604,6 +643,30 @@ DECLARATIONS = [
             required=["path", "pattern"],
         ),
     ),
+    types.FunctionDeclaration(
+        name="file_diff",
+        description=(
+            "Compare two files and return a unified diff (diff -u). "
+            "Use for code review, verifying what changed between two versions of a file, "
+            "or comparing config files side-by-side. "
+            "Returns 'Files are identical' if there are no differences. "
+            "Restricted to the Cortex project directory."
+        ),
+        parameters=types.Schema(
+            type=types.Type.OBJECT,
+            properties={
+                "path_a": types.Schema(
+                    type=types.Type.STRING,
+                    description="Path to the first file (the 'before' or reference file)",
+                ),
+                "path_b": types.Schema(
+                    type=types.Type.STRING,
+                    description="Path to the second file (the 'after' or comparison file)",
+                ),
+            },
+            required=["path_a", "path_b"],
+        ),
+    ),
     types.FunctionDeclaration(
         name="file_syntax_check",
         description=(