diff --git a/CLAUDE.md b/CLAUDE.md
index 45a6262..ed5d84a 100644
--- a/CLAUDE.md
+++ b/CLAUDE.md
@@ -252,7 +252,32 @@ Enable detailed authentication logging by setting:
 
 ```lua
 require("claudecode").setup({
-  log_level = "debug"  -- Shows auth token generation, validation, and failures
+  log_level = "debug",  -- Shows auth token generation, validation, and failures
+  diff_opts = {
+    keep_terminal_focus = true,  -- If true, moves focus back to terminal after diff opens
+  },
+})
+```
+
+### Configuration Options
+
+#### Diff Options
+
+The `diff_opts` configuration allows you to customize diff behavior:
+
+- `keep_terminal_focus` (boolean, default: `false`) - When enabled, keeps focus in the Claude Code terminal when a diff opens instead of moving focus to the diff buffer. This allows you to continue using terminal keybindings like `<CR>` for accepting/rejecting diffs without accidentally triggering other mappings.
+
+**Example use case**: If you frequently use `<CR>` or arrow keys in the Claude Code terminal to accept/reject diffs, enable this option to prevent focus from moving to the diff buffer where `<CR>` might trigger unintended actions.
+
+```lua
+require("claudecode").setup({
+  diff_opts = {
+    keep_terminal_focus = true,  -- If true, moves focus back to terminal after diff opens
+    auto_close_on_accept = true,
+    show_diff_stats = true,
+    vertical_split = true,
+    open_in_current_tab = true,
+  },
 })
 ```
 
diff --git a/README.md b/README.md
index add7076..6c0cdcb 100644
--- a/README.md
+++ b/README.md
@@ -267,6 +267,7 @@ For deep technical details, see [ARCHITECTURE.md](./ARCHITECTURE.md).
       auto_close_on_accept = true,
       vertical_split = true,
       open_in_current_tab = true,
+      keep_terminal_focus = false, -- If true, moves focus back to terminal after diff opens
     },
   },
   keys = {
diff --git a/dev-config.lua b/dev-config.lua
index 2fd2cae..c1b0ca3 100644
--- a/dev-config.lua
+++ b/dev-config.lua
@@ -62,6 +62,7 @@ return {
     --   show_diff_stats = true,                   -- Show diff statistics
     --   vertical_split = true,                    -- Use vertical split for diffs
     --   open_in_current_tab = true,               -- Open diffs in current tab vs new tab
+    --   keep_terminal_focus = false,              -- If true, moves focus back to terminal after diff opens
     -- },
 
     -- Terminal Configuration
diff --git a/fixtures/nvim-tree/lazy-lock.json b/fixtures/nvim-tree/lazy-lock.json
index 7786fdb..ebf5acd 100644
--- a/fixtures/nvim-tree/lazy-lock.json
+++ b/fixtures/nvim-tree/lazy-lock.json
@@ -1,6 +1,6 @@
 {
   "lazy.nvim": { "branch": "main", "commit": "6c3bda4aca61a13a9c63f1c1d1b16b9d3be90d7a" },
-  "nvim-tree.lua": { "branch": "master", "commit": "65bae449224b8a3bc149471b96587b23b13a9946" },
-  "nvim-web-devicons": { "branch": "master", "commit": "4a8369f4c78ef6f6f895f0cec349e48f74330574" },
+  "nvim-tree.lua": { "branch": "master", "commit": "0a7fcdf3f8ba208f4260988a198c77ec11748339" },
+  "nvim-web-devicons": { "branch": "master", "commit": "3362099de3368aa620a8105b19ed04c2053e38c0" },
   "tokyonight.nvim": { "branch": "main", "commit": "057ef5d260c1931f1dffd0f052c685dcd14100a3" }
 }
diff --git a/lua/claudecode/config.lua b/lua/claudecode/config.lua
index 88bdee8..3206932 100644
--- a/lua/claudecode/config.lua
+++ b/lua/claudecode/config.lua
@@ -18,6 +18,7 @@ M.defaults = {
     show_diff_stats = true,
     vertical_split = true,
     open_in_current_tab = true, -- Use current tab instead of creating new tab
+    keep_terminal_focus = false, -- If true, moves focus back to terminal after diff opens
   },
   models = {
     { name = "Claude Opus 4 (Latest)", value = "opus" },
@@ -78,6 +79,7 @@ function M.validate(config)
   assert(type(config.diff_opts.show_diff_stats) == "boolean", "diff_opts.show_diff_stats must be a boolean")
   assert(type(config.diff_opts.vertical_split) == "boolean", "diff_opts.vertical_split must be a boolean")
   assert(type(config.diff_opts.open_in_current_tab) == "boolean", "diff_opts.open_in_current_tab must be a boolean")
+  assert(type(config.diff_opts.keep_terminal_focus) == "boolean", "diff_opts.keep_terminal_focus must be a boolean")
 
   -- Validate env
   assert(type(config.env) == "table", "env must be a table")
diff --git a/lua/claudecode/diff.lua b/lua/claudecode/diff.lua
index 631ac36..e23cf85 100644
--- a/lua/claudecode/diff.lua
+++ b/lua/claudecode/diff.lua
@@ -7,6 +7,7 @@ local logger = require("claudecode.logger")
 -- Global state management for active diffs
 local active_diffs = {}
 local autocmd_group
+local config
 
 --- Get or create the autocmd group
 local function get_autocmd_group()
@@ -41,13 +42,12 @@ local function find_main_editor_window()
       is_suitable = false
     end
 
-    -- Skip known sidebar filetypes and ClaudeCode terminal
+    -- Skip known sidebar filetypes
     if
       is_suitable
       and (
         filetype == "neo-tree"
         or filetype == "neo-tree-popup"
-        or filetype == "ClaudeCode"
         or filetype == "NvimTree"
         or filetype == "oil"
         or filetype == "aerial"
@@ -66,11 +66,39 @@ local function find_main_editor_window()
   return nil
 end
 
+--- Find the Claude Code terminal window to keep focus there.
+-- Uses the terminal provider to get the active terminal buffer, then finds its window.
+-- @return number|nil Window ID of the Claude Code terminal window, or nil if not found
+local function find_claudecode_terminal_window()
+  local terminal_ok, terminal_module = pcall(require, "claudecode.terminal")
+  if not terminal_ok then
+    return nil
+  end
+
+  local terminal_bufnr = terminal_module.get_active_terminal_bufnr()
+  if not terminal_bufnr then
+    return nil
+  end
+
+  -- Find the window containing this buffer
+  for _, win in ipairs(vim.api.nvim_list_wins()) do
+    if vim.api.nvim_win_get_buf(win) == terminal_bufnr then
+      local win_config = vim.api.nvim_win_get_config(win)
+      -- Skip floating windows
+      if not (win_config.relative and win_config.relative ~= "") then
+        return win
+      end
+    end
+  end
+
+  return nil
+end
+
 --- Setup the diff module
--- @param user_diff_config table|nil Reserved for future use
-function M.setup(user_diff_config)
-  -- Currently no configuration needed for native diff
-  -- Parameter kept for API compatibility
+-- @param user_config table|nil The configuration passed from init.lua
+function M.setup(user_config)
+  -- Store the configuration for later use
+  config = user_config or {}
 end
 
 --- Open a diff view between two files
@@ -513,7 +541,7 @@ function M._create_diff_view_from_window(target_window, old_file_path, new_buffe
     local buftype = vim.api.nvim_buf_get_option(buf, "buftype")
     local filetype = vim.api.nvim_buf_get_option(buf, "filetype")
 
-    if buftype == "terminal" or buftype == "prompt" or filetype == "neo-tree" or filetype == "ClaudeCode" then
+    if buftype == "terminal" or buftype == "prompt" or filetype == "neo-tree" then
       vim.cmd("vsplit")
     end
 
@@ -576,6 +604,8 @@ function M._create_diff_view_from_window(target_window, old_file_path, new_buffe
   vim.cmd("diffthis")
 
   vim.cmd("wincmd =")
+
+  -- Always focus the diff window first for proper visual flow and window arrangement
   vim.api.nvim_set_current_win(new_win)
 
   -- Store diff context in buffer variables for user commands
@@ -583,6 +613,16 @@ function M._create_diff_view_from_window(target_window, old_file_path, new_buffe
   vim.b[new_buffer].claudecode_diff_new_win = new_win
   vim.b[new_buffer].claudecode_diff_target_win = target_window
 
+  -- After all diff setup is complete, optionally return focus to terminal
+  if config and config.diff_opts and config.diff_opts.keep_terminal_focus then
+    vim.schedule(function()
+      local terminal_win = find_claudecode_terminal_window()
+      if terminal_win then
+        vim.api.nvim_set_current_win(terminal_win)
+      end
+    end, 0)
+  end
+
   -- Return window information for later storage
   return {
     new_window = new_win,
diff --git a/lua/claudecode/init.lua b/lua/claudecode/init.lua
index d69abc9..4f45409 100644
--- a/lua/claudecode/init.lua
+++ b/lua/claudecode/init.lua
@@ -43,7 +43,7 @@ M.version = {
 --- @field connection_wait_delay number Milliseconds to wait after connection before sending queued @ mentions.
 --- @field connection_timeout number Maximum time to wait for Claude Code to connect (milliseconds).
 --- @field queue_timeout number Maximum time to keep @ mentions in queue (milliseconds).
---- @field diff_opts { auto_close_on_accept: boolean, show_diff_stats: boolean, vertical_split: boolean, open_in_current_tab: boolean } Options for the diff provider.
+--- @field diff_opts { auto_close_on_accept: boolean, show_diff_stats: boolean, vertical_split: boolean, open_in_current_tab: boolean, keep_terminal_focus: boolean } Options for the diff provider.
 
 --- @type ClaudeCode.Config
 local default_config = {
@@ -62,6 +62,7 @@ local default_config = {
     show_diff_stats = true,
     vertical_split = true,
     open_in_current_tab = false,
+    keep_terminal_focus = false,
   },
 }
 
diff --git a/lua/claudecode/tools/open_file.lua b/lua/claudecode/tools/open_file.lua
index 81c9ce8..639593d 100644
--- a/lua/claudecode/tools/open_file.lua
+++ b/lua/claudecode/tools/open_file.lua
@@ -88,7 +88,6 @@ local function find_main_editor_window()
       and (
         filetype == "neo-tree"
         or filetype == "neo-tree-popup"
-        or filetype == "ClaudeCode"
         or filetype == "NvimTree"
         or filetype == "oil"
         or filetype == "aerial"
diff --git a/tests/unit/config_spec.lua b/tests/unit/config_spec.lua
index 82f801c..3e0d63c 100644
--- a/tests/unit/config_spec.lua
+++ b/tests/unit/config_spec.lua
@@ -23,6 +23,9 @@ describe("Configuration", function()
     expect(config.defaults).to_have_key("log_level")
     expect(config.defaults).to_have_key("track_selection")
     expect(config.defaults).to_have_key("models")
+    expect(config.defaults).to_have_key("diff_opts")
+    expect(config.defaults.diff_opts).to_have_key("keep_terminal_focus")
+    expect(config.defaults.diff_opts.keep_terminal_focus).to_be_false()
   end)
 
   it("should apply and validate user configuration", function()
@@ -136,5 +139,62 @@ describe("Configuration", function()
     expect(merged_config.models).to_be_table()
   end)
 
+  it("should accept valid keep_terminal_focus configuration", function()
+    local user_config = {
+      port_range = { min = 10000, max = 65535 },
+      auto_start = true,
+      log_level = "info",
+      track_selection = true,
+      visual_demotion_delay_ms = 50,
+      connection_wait_delay = 200,
+      connection_timeout = 10000,
+      queue_timeout = 5000,
+      diff_opts = {
+        auto_close_on_accept = true,
+        show_diff_stats = true,
+        vertical_split = true,
+        open_in_current_tab = true,
+        keep_terminal_focus = true,
+      },
+      env = {},
+      models = {
+        { name = "Test Model", value = "test" },
+      },
+    }
+
+    local final_config = config.apply(user_config)
+    expect(final_config.diff_opts.keep_terminal_focus).to_be_true()
+  end)
+
+  it("should reject invalid keep_terminal_focus configuration", function()
+    local invalid_config = {
+      port_range = { min = 10000, max = 65535 },
+      auto_start = true,
+      log_level = "info",
+      track_selection = true,
+      visual_demotion_delay_ms = 50,
+      connection_wait_delay = 200,
+      connection_timeout = 10000,
+      queue_timeout = 5000,
+      diff_opts = {
+        auto_close_on_accept = true,
+        show_diff_stats = true,
+        vertical_split = true,
+        open_in_current_tab = true,
+        keep_terminal_focus = "invalid", -- Should be boolean
+      },
+      env = {},
+      models = {
+        { name = "Test Model", value = "test" },
+      },
+    }
+
+    local success, _ = pcall(function()
+      config.validate(invalid_config)
+    end)
+
+    expect(success).to_be_false()
+  end)
+
   teardown()
 end)
diff --git a/tests/unit/diff_spec.lua b/tests/unit/diff_spec.lua
index a7d0dda..5b690c8 100644
--- a/tests/unit/diff_spec.lua
+++ b/tests/unit/diff_spec.lua
@@ -49,6 +49,31 @@ describe("Diff Module", function()
     teardown()
   end)
 
+  describe("Configuration", function()
+    it("should store configuration in setup", function()
+      local test_config = {
+        diff_opts = {
+          keep_terminal_focus = true,
+        },
+      }
+
+      diff.setup(test_config)
+
+      -- We can't directly test the stored config since it's local to the module,
+      -- but we can test that setup doesn't error and the module is properly initialized
+      expect(type(diff.setup)).to_be("function")
+      expect(type(diff.open_diff)).to_be("function")
+    end)
+
+    it("should handle empty configuration", function()
+      -- This should not error
+      diff.setup(nil)
+      diff.setup({})
+
+      expect(type(diff.setup)).to_be("function")
+    end)
+  end)
+
   describe("Temporary File Management (via Native Diff)", function()
     it("should create temporary files with correct content through native diff", function()
       local test_content = "This is test content\nLine 2\nLine 3"