diff --git a/lua/codediff/ui/view/compact.lua b/lua/codediff/ui/view/compact.lua
index ce60c409..5299a27c 100644
--- a/lua/codediff/ui/view/compact.lua
+++ b/lua/codediff/ui/view/compact.lua
@@ -227,6 +227,24 @@ local function apply_folds(session, tabpage)
   setup_fold_sync(session, tabpage)
 end
 
+--- Temporarily stop evaluating compact folds while a view swaps buffers.
+--- The previous file's visible-line table is keyed by window, so leaving
+--- folds enabled during the swap can render the new file with stale folds
+--- until its diff has been computed. apply_folds() re-enables them once the
+--- new render is ready.
+--- @param tabpage number
+function M.suspend(tabpage)
+  local session = lifecycle.get_session(tabpage)
+  if not session or not session.compact_mode then
+    return
+  end
+  for _, entry in ipairs(pane_entries(session)) do
+    if entry.win and vim.api.nvim_win_is_valid(entry.win) then
+      vim.wo[entry.win].foldenable = false
+    end
+  end
+end
+
 --- Enable compact mode for a tabpage
 --- @param tabpage number
 --- @return boolean success
@@ -320,7 +338,8 @@ end
 ---   * applies the configured "open in compact mode" default once, when the
 ---     first real diff is ready;
 ---   * re-folds the current diff while compact is active;
----   * exits compact if the diff no longer has any changes.
+---   * suspends folds while the current view has no changes, preserving the
+---     user's compact-mode choice for the next file.
 --- gc uses toggle()/enable()/disable() directly.
 --- @param tabpage number
 function M.refresh(tabpage)
@@ -353,7 +372,7 @@ function M.refresh(tabpage)
 
   local changes = session.stored_diff_result and session.stored_diff_result.changes
   if not changes or #changes == 0 then
-    M.disable(tabpage)
+    M.suspend(tabpage)
     return
   end
 
diff --git a/lua/codediff/ui/view/side_by_side.lua b/lua/codediff/ui/view/side_by_side.lua
index 78209c9f..407dd376 100644
--- a/lua/codediff/ui/view/side_by_side.lua
+++ b/lua/codediff/ui/view/side_by_side.lua
@@ -21,6 +21,7 @@ local view_keymaps = require("codediff.ui.view.keymaps")
 local conflict_window = require("codediff.ui.view.conflict_window")
 local panel = require("codediff.ui.view.panel")
 local welcome_window = require("codediff.ui.view.welcome_window")
+local compact = require("codediff.ui.view.compact")
 
 local is_virtual_revision = helpers.is_virtual_revision
 local prepare_buffer = helpers.prepare_buffer
@@ -428,6 +429,12 @@ function M.update(tabpage, session_config, auto_scroll_to_first_hunk)
     return false
   end
 
+  -- The windows still carry the previous file's compact fold expression and
+  -- visible-line table. Disable fold evaluation until the new diff render
+  -- refreshes those tables, otherwise the replacement buffers can briefly be
+  -- displayed using stale folds.
+  compact.suspend(tabpage)
+
   -- Disable auto-refresh temporarily
   auto_refresh.disable(old_original_buf)
   auto_refresh.disable(old_modified_buf)
diff --git a/tests/ui/view/compact_spec.lua b/tests/ui/view/compact_spec.lua
index 91b8bbcd..4262478c 100644
--- a/tests/ui/view/compact_spec.lua
+++ b/tests/ui/view/compact_spec.lua
@@ -11,6 +11,7 @@ local lifecycle = require("codediff.ui.lifecycle")
 local diff = require("codediff.core.diff")
 local highlights = require("codediff.ui.highlights")
 local path = require("codediff.core.path")
+local side_by_side = require("codediff.ui.view.side_by_side")
 
 local function get_temp_path(name)
   local is_win = vim.fn.has("win32") == 1 or vim.fn.has("win64") == 1
@@ -66,10 +67,15 @@ describe("compact mode (#344)", function()
     while vim.fn.tabpagenr("$") > 1 do
       vim.cmd("tabclose")
     end
-    -- The two scratch buffers backing create_session persist across tests
-    -- because their on-disk paths are the same; delete them so each test
-    -- starts with a fresh keymap state.
-    for _, name in ipairs({ "compact_spec_left.txt", "compact_spec_right.txt" }) do
+    -- Scratch buffers persist across tests because their on-disk paths are
+    -- reused; delete them so each test starts with fresh window/keymap state.
+    for _, name in ipairs({
+      "compact_spec_left.txt",
+      "compact_spec_right.txt",
+      "compact_spec_swap_left.txt",
+      "compact_spec_swap_right.txt",
+      "compact_spec_empty.txt",
+    }) do
       local path = get_temp_path(name)
       local bufnr = vim.fn.bufnr(path)
       if bufnr ~= -1 and vim.api.nvim_buf_is_valid(bufnr) then
@@ -270,6 +276,105 @@ describe("compact mode (#344)", function()
         "second enable must not overwrite the saved fold state")
     end)
 
+    it("does not apply the previous file's folds while update swaps buffers", function()
+      local original = {}
+      local modified = {}
+      for i = 1, 100 do
+        original[i] = "line " .. i
+        modified[i] = "line " .. i
+      end
+      modified[83] = "line 83 CHANGED"
+
+      local tabpage, session = create_session(original, modified)
+      assert.is_true(compact.enable(tabpage))
+      assert.equal(1, vim.api.nvim_win_call(session.modified_win, function()
+        return vim.fn.foldclosed(1)
+      end))
+
+      local left = get_temp_path("compact_spec_swap_left.txt")
+      local right = get_temp_path("compact_spec_swap_right.txt")
+      vim.fn.writefile({ "one" }, left)
+      vim.fn.writefile({ "one", "two", "three" }, right)
+
+      local foldenable_during_swap
+      local group = vim.api.nvim_create_augroup("CodeDiffCompactSwapSpec", { clear = true })
+      vim.api.nvim_create_autocmd("BufWinEnter", {
+        group = group,
+        pattern = "compact_spec_swap_right.txt",
+        callback = function()
+          local current = lifecycle.get_session(tabpage)
+          local current_name = current and vim.api.nvim_buf_get_name(vim.api.nvim_win_get_buf(current.modified_win)) or ""
+          if vim.fn.fnamemodify(current_name, ":t") == "compact_spec_swap_right.txt" then
+            foldenable_during_swap = vim.wo[current.modified_win].foldenable
+          end
+        end,
+      })
+
+      assert.is_true(view.update(tabpage, {
+        mode = "standalone",
+        git_root = nil,
+        original = path.make_ref(left, nil),
+        modified = path.make_ref(right, nil),
+      }, false))
+      assert.is_true(vim.wait(5000, function()
+        local current = lifecycle.get_session(tabpage)
+        return foldenable_during_swap ~= nil and current
+          and vim.fn.fnamemodify(vim.api.nvim_buf_get_name(current.modified_bufnr), ":t") == "compact_spec_swap_right.txt"
+          and current.stored_diff_result and current.stored_diff_result.changes
+      end, 20))
+
+      session = lifecycle.get_session(tabpage)
+      assert.is_false(foldenable_during_swap, "stale compact folds were enabled during the buffer swap")
+      assert.is_true(vim.wo[session.modified_win].foldenable, "new compact folds were not restored after render")
+      assert.equal(-1, vim.api.nvim_win_call(session.modified_win, function()
+        return vim.fn.foldclosed(2)
+      end), "new changed line was hidden after render")
+      vim.api.nvim_del_augroup_by_id(group)
+    end)
+
+    it("restores compact folds after displaying an empty single-file view", function()
+      local original = {}
+      local modified = {}
+      for i = 1, 100 do
+        original[i] = "line " .. i
+        modified[i] = "line " .. i
+      end
+      modified[83] = "line 83 CHANGED"
+
+      local tabpage, session, left, right = create_session(original, modified)
+      assert.is_true(compact.enable(tabpage))
+      assert.equal(1, vim.api.nvim_win_call(session.modified_win, function()
+        return vim.fn.foldclosed(1)
+      end))
+
+      local empty = get_temp_path("compact_spec_empty.txt")
+      vim.fn.writefile({}, empty)
+      side_by_side.show_untracked_file(tabpage, empty)
+
+      session = lifecycle.get_session(tabpage)
+      assert.is_true(session.compact_mode, "empty view should preserve the compact-mode choice")
+      assert.is_false(vim.wo[session.modified_win].foldenable, "empty view should suspend compact folds")
+
+      assert.is_true(view.update(tabpage, {
+        mode = "standalone",
+        git_root = nil,
+        original = path.make_ref(left, nil),
+        modified = path.make_ref(right, nil),
+      }, false))
+      assert.is_true(vim.wait(5000, function()
+        local current = lifecycle.get_session(tabpage)
+        return current and not current.single_pane and current.stored_diff_result
+          and current.stored_diff_result.changes and #current.stored_diff_result.changes > 0
+      end, 20))
+
+      session = lifecycle.get_session(tabpage)
+      assert.is_true(session.compact_mode)
+      assert.is_true(vim.wo[session.modified_win].foldenable, "compact folds were not restored")
+      assert.equal(1, vim.api.nvim_win_call(session.modified_win, function()
+        return vim.fn.foldclosed(1)
+      end), "unchanged region was not folded after leaving the empty view")
+    end)
+
     it("returns false when there are no changes to compact", function()
       -- Identical files → no hunks.
       local lines = { "a", "b", "c" }