diff --git a/lib/src/conflicts.rs b/lib/src/conflicts.rs
index 4d139e235..44557c768 100644
--- a/lib/src/conflicts.rs
+++ b/lib/src/conflicts.rs
@@ -20,6 +20,7 @@ use std::io::Write;
 use std::iter::zip;
 
 use bstr::BString;
+use bstr::ByteSlice;
 use futures::stream::BoxStream;
 use futures::try_join;
 use futures::Stream;
@@ -394,7 +395,7 @@ pub fn parse_conflict(input: &[u8], num_sides: usize) -> Option<Vec<Merge<BStrin
     let mut conflict_start = None;
     let mut conflict_start_len = 0;
     for line in input.split_inclusive(|b| *b == b'\n') {
-        if CONFLICT_MARKER_REGEX.is_match_at(line, 0) {
+        if is_conflict_marker_line(line) {
             if line[0] == CONFLICT_START_LINE_CHAR {
                 conflict_start = Some(pos);
                 conflict_start_len = line.len();
@@ -436,7 +437,7 @@ fn parse_conflict_hunk(input: &[u8]) -> Merge<BString> {
     let mut removes = vec![];
     let mut adds = vec![];
     for line in input.split_inclusive(|b| *b == b'\n') {
-        if CONFLICT_MARKER_REGEX.is_match_at(line, 0) {
+        if is_conflict_marker_line(line) {
             match line[0] {
                 CONFLICT_DIFF_LINE_CHAR => {
                     state = State::Diff;
@@ -492,6 +493,13 @@ fn parse_conflict_hunk(input: &[u8]) -> Merge<BString> {
     }
 }
 
+/// Check whether a line is a conflict marker. Removes trailing whitespace
+/// before checking against regex to ensure it parses CRLF endings correctly.
+fn is_conflict_marker_line(line: &[u8]) -> bool {
+    let line = line.trim_end_with(|ch| ch.is_ascii_whitespace());
+    CONFLICT_MARKER_REGEX.is_match_at(line, 0)
+}
+
 /// Parses conflict markers in `content` and returns an updated version of
 /// `file_ids` with the new contents. If no (valid) conflict markers remain, a
 /// single resolves `FileId` will be returned.
diff --git a/lib/tests/test_conflicts.rs b/lib/tests/test_conflicts.rs
index 8534f817e..126d879d6 100644
--- a/lib/tests/test_conflicts.rs
+++ b/lib/tests/test_conflicts.rs
@@ -727,8 +727,8 @@ fn test_parse_conflict_multi_way() {
 
 #[test]
 fn test_parse_conflict_crlf_markers() {
-    // Conflict markers aren't recognized due to CRLF
-    assert_eq!(
+    // Conflict markers should be recognized even with CRLF
+    insta::assert_debug_snapshot!(
         parse_conflict(
             indoc! {b"
             line 1\r
@@ -744,7 +744,25 @@ fn test_parse_conflict_crlf_markers() {
             "},
             2
         ),
-        None
+        @r#"
+    Some(
+        [
+            Resolved(
+                "line 1\r\n",
+            ),
+            Conflicted(
+                [
+                    "left\r\n",
+                    "base\r\n",
+                    "right\r\n",
+                ],
+            ),
+            Resolved(
+                "line 5\r\n",
+            ),
+        ],
+    )
+    "#
     );
 }