diff --git a/mercurial/cmdutil.py b/mercurial/cmdutil.py
--- a/mercurial/cmdutil.py
+++ b/mercurial/cmdutil.py
@@ -122,6 +122,8 @@
      _('ignore changes in the amount of white space')),
     ('B', 'ignore-blank-lines', None,
      _('ignore changes whose lines are all blank')),
+    ('e', 'ignore-space-at-eol', None,
+     _('ignore changes in whitespace at EOL')),
 ]
 
 diffopts2 = [
diff --git a/mercurial/help/config.txt b/mercurial/help/config.txt
--- a/mercurial/help/config.txt
+++ b/mercurial/help/config.txt
@@ -313,6 +313,9 @@
 ``ignorews``
     Ignore white space when comparing lines.
 
+``ignorewseol``
+    Ignore white space at the end of a line when comparing lines.
+
 ``ignorewsamount``
     Ignore changes in the amount of white space.
 
diff --git a/mercurial/mdiff.py b/mercurial/mdiff.py
--- a/mercurial/mdiff.py
+++ b/mercurial/mdiff.py
@@ -63,6 +63,7 @@
         'index': 0,
         'ignorews': False,
         'ignorewsamount': False,
+        'ignorewseol': False,
         'ignoreblanklines': False,
         'upgrade': False,
         'showsimilarity': False,
@@ -97,6 +98,8 @@
         text = bdiff.fixws(text, 0)
     if blank and opts.ignoreblanklines:
         text = re.sub('\n+', '\n', text).strip('\n')
+    if opts.ignorewseol:
+        text = re.sub(r'\s+\n', r'\n', text)
     return text
 
 def splitblock(base1, lines1, base2, lines2, opts):
@@ -199,7 +202,7 @@
     """
     if opts is None:
         opts = defaultopts
-    if opts.ignorews or opts.ignorewsamount:
+    if opts.ignorews or opts.ignorewsamount or opts.ignorewseol:
         text1 = wsclean(opts, text1, False)
         text2 = wsclean(opts, text2, False)
     diff = bdiff.blocks(text1, text2)
diff --git a/mercurial/patch.py b/mercurial/patch.py
--- a/mercurial/patch.py
+++ b/mercurial/patch.py
@@ -2282,6 +2282,7 @@
                                           'ignorewsamount')
         buildopts['ignoreblanklines'] = get('ignore_blank_lines',
                                             'ignoreblanklines')
+        buildopts['ignorewseol'] = get('ignore_space_at_eol', 'ignorewseol')
     if formatchanging:
         buildopts['text'] = opts and opts.get('text')
         binary = None if opts is None else opts.get('binary')
diff --git a/tests/test-diff-ignore-whitespace.t b/tests/test-diff-ignore-whitespace.t
--- a/tests/test-diff-ignore-whitespace.t
+++ b/tests/test-diff-ignore-whitespace.t
@@ -407,8 +407,16 @@
   +goodbye\r (no-eol) (esc)
   world
 
+Test \r (carriage return) as used in "DOS" line endings:
+
+  $ printf 'hello world    \r\ngoodbye world\n' >foo
+
+  $ hg ndiff --ignore-space-at-eol
+
 No completely blank lines to ignore:
 
+  $ printf 'hello world\r\n\r\ngoodbye\rworld\n' >foo
+
   $ hg ndiff --ignore-blank-lines
   diff -r 540c40a65b78 foo
   --- a/foo