diff --git a/README.md b/README.md
index adad924..61bda38 100644
--- a/README.md
+++ b/README.md
@@ -1,236 +1,70 @@
 # fugitive-ts.nvim
 
-Treesitter syntax highlighting for vim-fugitive diff views.
+**Treesitter syntax highlighting for vim-fugitive diff views**
 
-## Problem
+Transform fugitive's regex-based diff highlighting into language-aware,
+treesitter-powered syntax highlighting.
 
-vim-fugitive uses regex-based `syntax/diff.vim` for highlighting expanded diffs
-in the status buffer. This means code inside diffs has no language-aware
-highlighting:
+## Features
 
-```
-Unstaged (1)
-M lua/mymodule.lua
-@@ -10,3 +10,4 @@
- local M = {}           ← no lua highlighting
-+local new_thing = true ← just diff green, no syntax
- return M
-```
+- **Language-aware highlighting**: Full treesitter syntax highlighting for code
+  in diff hunks
+- **Automatic language detection**: Detects language from filenames using
+  Neovim's filetype detection
+- **Header context highlighting**: Highlights function signatures in hunk
+  headers (`@@ ... @@ function foo()`)
+- **Performance optimized**: Debounced updates, configurable max lines per hunk
+- **Zero configuration**: Works out of the box with sensible defaults
 
-## Solution
+## Requirements
 
-Hook into fugitive's buffer, detect diff hunks, extract the language from
-filenames, and apply treesitter highlights as extmarks on top of fugitive's
-existing highlighting.
-
-```
-Unstaged (1)
-M lua/mymodule.lua
-@@ -10,3 +10,4 @@
- local M = {}           ← treesitter lua highlights overlaid
-+local new_thing = true ← diff green + lua keyword/boolean highlights
- return M
-```
-
-## Technical Approach
-
-### 1. Hook Point
-
-```lua
-vim.api.nvim_create_autocmd("FileType", {
-  pattern = "fugitive",
-  callback = function(args)
-    -- Set up buffer-local autocmd to re-highlight on changes
-    -- (user expanding/collapsing diffs with = key)
-  end
-})
-```
-
-Also consider `User FugitiveIndex` event for more specific timing.
-
-### 2. Parse Fugitive Buffer Structure
-
-The fugitive status buffer has this structure:
-
-```
-Head: branch-name
-Merge: origin/branch
-Help: g?
-
-Unstaged (N)
-M path/to/file.lua        ← filename line (extract extension here)
-@@ -10,3 +10,4 @@           ← hunk header
- context line              ← code lines start here
-+added line
--removed line
- context line              ← code lines end at next blank/header
-
-Staged (N)
-...
-```
-
-Pattern to detect:
-
-- Filename: `^[MADRC?] .+%.(%w+)$` → captures extension
-- Hunk header: `^@@ .+ @@`
-- Code lines: after hunk header, lines starting with ` `, `+`, or `-`
-- End of hunk: blank line, next filename, or next section header
-
-### 3. Map Extension to Treesitter Language
-
-```lua
-local ext_to_lang = {
-  lua = "lua",
-  py = "python",
-  js = "javascript",
-  ts = "typescript",
-  tsx = "tsx",
-  rs = "rust",
-  go = "go",
-  rb = "ruby",
-  -- etc.
-}
-
--- Or use vim.filetype.match() for robustness:
-local ft = vim.filetype.match({ filename = filename })
-local lang = vim.treesitter.language.get_lang(ft)
-```
-
-### 4. Check Parser Availability
-
-```lua
-local function has_parser(lang)
-  local ok = pcall(vim.treesitter.language.inspect, lang)
-  return ok
-end
-```
-
-If no parser, skip (keep fugitive's default highlighting).
-
-### 5. Apply Treesitter Highlights
-
-Core algorithm:
-
-```lua
-local ns = vim.api.nvim_create_namespace("fugitive_ts")
-
-local function highlight_hunk(bufnr, start_line, lines, lang)
-  -- Strip the leading +/- /space from each line for parsing
-  local code_lines = {}
-  local prefix_chars = {}
-  for i, line in ipairs(lines) do
-    prefix_chars[i] = line:sub(1, 1)
-    code_lines[i] = line:sub(2)  -- remove diff prefix
-  end
-
-  local code = table.concat(code_lines, "\n")
-
-  -- Parse with treesitter
-  local parser = vim.treesitter.get_string_parser(code, lang)
-  local tree = parser:parse()[1]
-  local root = tree:root()
-
-  -- Get highlight query
-  local query = vim.treesitter.query.get(lang, "highlights")
-  if not query then return end
-
-  -- Apply highlights
-  for id, node, metadata in query:iter_captures(root, code) do
-    local capture = "@" .. query.captures[id]
-    local sr, sc, er, ec = node:range()
-
-    -- Translate to buffer coordinates
-    -- sr/er are 0-indexed rows within the code snippet
-    -- Need to add start_line offset and +1 for the prefix char
-    local buf_sr = start_line + sr
-    local buf_er = start_line + er
-    local buf_sc = sc + 1  -- +1 for the +/-/space prefix
-    local buf_ec = ec + 1
-
-    vim.api.nvim_buf_set_extmark(bufnr, ns, buf_sr, buf_sc, {
-      end_row = buf_er,
-      end_col = buf_ec,
-      hl_group = capture,
-      priority = 200,  -- higher than fugitive's syntax
-    })
-  end
-end
-```
-
-### 6. Re-highlight on Buffer Change
-
-Fugitive modifies the buffer when user expands/collapses diffs. Need to
-re-parse:
-
-```lua
-vim.api.nvim_create_autocmd({"TextChanged", "TextChangedI"}, {
-  buffer = bufnr,
-  callback = function()
-    -- Clear old highlights
-    vim.api.nvim_buf_clear_namespace(bufnr, ns, 0, -1)
-    -- Re-scan and highlight
-    highlight_fugitive_buffer(bufnr)
-  end
-})
-```
-
-Consider debouncing for performance.
-
-## File Structure
-
-```
-fugitive-ts.nvim/
-├── lua/
-│   └── fugitive-ts/
-│       ├── init.lua      -- setup() and main logic
-│       ├── parser.lua    -- parse fugitive buffer structure
-│       └── highlight.lua -- treesitter highlight application
-└── plugin/
-    └── fugitive-ts.lua   -- autocommand setup (lazy load)
-```
-
-## API
-
-```lua
-require("fugitive-ts").setup({
-  -- Enable/disable (default: true)
-  enabled = true,
-
-  -- Custom extension -> language mappings
-  languages = {
-    -- extension = "treesitter-lang"
-  },
-
-  -- Fallback to vim syntax if no treesitter parser (default: false)
-  -- (More complex to implement - would need to create scratch buffer)
-  syntax_fallback = false,
-})
-```
-
-## Edge Cases
-
-1. **No parser installed**: Skip, keep default highlighting
-2. **Unknown extension**: Use `vim.filetype.match()` then `get_lang()`
-3. **Binary files**: Fugitive shows "Binary file differs" - no code lines
-4. **Very large diffs**: Consider limiting to visible lines only
-5. **Multi-byte characters**: Treesitter ranges are byte-based, should work
-
-## Dependencies
-
-- Neovim 0.9+ (treesitter APIs)
-- vim-fugitive
+- Neovim 0.9.0+
+- [vim-fugitive](https://github.com/tpope/vim-fugitive)
 - Treesitter parsers for languages you want highlighted
 
-## Performance Considerations
+## Installation
 
-- Only parse visible hunks (check against `vim.fn.line('w0')` / `line('w$')`)
-- Debounce TextChanged events (50-100ms)
-- Cache parsed trees if buffer hasn't changed
-- Use `priority = 200` on extmarks to layer over fugitive syntax
+Using [lazy.nvim](https://github.com/folke/lazy.nvim):
 
-## References
+```lua
+{
+  'barrettruth/fugitive-ts.nvim',
+  dependencies = { 'tpope/vim-fugitive' },
+  opts = {},
+}
+```
 
-- [Neovim Treesitter API](https://neovim.io/doc/user/treesitter.html)
-- [vim-fugitive User events](https://github.com/tpope/vim-fugitive/blob/master/doc/fugitive.txt)
-- [nvim_buf_set_extmark](<https://neovim.io/doc/user/api.html#nvim_buf_set_extmark()>)
-- [vim.treesitter.get_string_parser](<https://neovim.io/doc/user/treesitter.html#vim.treesitter.get_string_parser()>)
+## Configuration
+
+```lua
+require('fugitive-ts').setup({
+  enabled = true,
+  debug = false,
+  languages = {},
+  disabled_languages = {},
+  highlight_headers = true,
+  debounce_ms = 50,
+  max_lines_per_hunk = 500,
+})
+```
+
+| Option               | Default | Description                                   |
+| -------------------- | ------- | --------------------------------------------- |
+| `enabled`            | `true`  | Enable/disable highlighting                   |
+| `debug`              | `false` | Log debug messages to `:messages`             |
+| `languages`          | `{}`    | Custom filename → language mappings           |
+| `disabled_languages` | `{}`    | Languages to skip (e.g., `{"markdown"}`)      |
+| `highlight_headers`  | `true`  | Highlight context in `@@ ... @@` hunk headers |
+| `debounce_ms`        | `50`    | Debounce delay for re-highlighting            |
+| `max_lines_per_hunk` | `500`   | Skip treesitter for large hunks               |
+
+## Documentation
+
+```vim
+:help fugitive-ts.nvim
+```
+
+## Similar Projects
+
+- [codediff.nvim](https://github.com/esmuellert/codediff.nvim)
+- [diffview.nvim](https://github.com/sindrets/diffview.nvim)
diff --git a/doc/fugitive-ts.nvim.txt b/doc/fugitive-ts.nvim.txt
index f91fb09..cc900b1 100644
--- a/doc/fugitive-ts.nvim.txt
+++ b/doc/fugitive-ts.nvim.txt
@@ -32,6 +32,14 @@ SETUP                                                        *fugitive-ts-setup*
       -- Custom filename -> language mappings (optional)
       languages = {},
 
+      -- Languages to skip treesitter highlighting for (default: {})
+      -- Uses treesitter language names, e.g. {"markdown", "vimdoc"}
+      disabled_languages = {},
+
+      -- Highlight context in hunk headers (default: true)
+      -- e.g. "@@ -10,3 +10,4 @@ function foo()" -> "function foo()" gets highlighted
+      highlight_headers = true,
+
       -- Debounce delay in ms (default: 50)
       debounce_ms = 50,
 
diff --git a/lua/fugitive-ts/highlight.lua b/lua/fugitive-ts/highlight.lua
index ea292d0..6286f10 100644
--- a/lua/fugitive-ts/highlight.lua
+++ b/lua/fugitive-ts/highlight.lua
@@ -10,9 +10,58 @@ end
 ---@param bufnr integer
 ---@param ns integer
 ---@param hunk fugitive-ts.Hunk
----@param max_lines integer
+---@param col_offset integer
+---@param text string
+---@param lang string
 ---@param debug? boolean
-function M.highlight_hunk(bufnr, ns, hunk, max_lines, debug)
+---@return integer
+local function highlight_text(bufnr, ns, hunk, col_offset, text, lang, debug)
+  local ok, parser_obj = pcall(vim.treesitter.get_string_parser, text, lang)
+  if not ok or not parser_obj then
+    return 0
+  end
+
+  local trees = parser_obj:parse()
+  if not trees or #trees == 0 then
+    return 0
+  end
+
+  local query = vim.treesitter.query.get(lang, 'highlights')
+  if not query then
+    return 0
+  end
+
+  local extmark_count = 0
+  local header_line = hunk.start_line - 1
+
+  for id, node, _ in query:iter_captures(trees[1]:root(), text) do
+    local capture_name = '@' .. query.captures[id]
+    local sr, sc, er, ec = node:range()
+
+    local buf_sr = header_line + sr
+    local buf_er = header_line + er
+    local buf_sc = col_offset + sc
+    local buf_ec = col_offset + ec
+
+    pcall(vim.api.nvim_buf_set_extmark, bufnr, ns, buf_sr, buf_sc, {
+      end_row = buf_er,
+      end_col = buf_ec,
+      hl_group = capture_name,
+      priority = 200,
+    })
+    extmark_count = extmark_count + 1
+  end
+
+  return extmark_count
+end
+
+---@param bufnr integer
+---@param ns integer
+---@param hunk fugitive-ts.Hunk
+---@param max_lines integer
+---@param highlight_headers boolean
+---@param debug? boolean
+function M.highlight_hunk(bufnr, ns, hunk, max_lines, highlight_headers, debug)
   local lang = hunk.lang
   if not lang then
     return
@@ -66,6 +115,20 @@ function M.highlight_hunk(bufnr, ns, hunk, max_lines, debug)
     return
   end
 
+  if highlight_headers and hunk.header_context and hunk.header_context_col then
+    local header_line = hunk.start_line - 1
+    pcall(vim.api.nvim_buf_set_extmark, bufnr, ns, header_line, hunk.header_context_col, {
+      end_col = hunk.header_context_col + #hunk.header_context,
+      hl_group = 'Normal',
+      priority = 199,
+    })
+    local header_extmarks =
+      highlight_text(bufnr, ns, hunk, hunk.header_context_col, hunk.header_context, lang, debug)
+    if debug and header_extmarks > 0 then
+      dbg('header %s:%d applied %d extmarks', hunk.filename, hunk.start_line, header_extmarks)
+    end
+  end
+
   for i, line in ipairs(hunk.lines) do
     local buf_line = hunk.start_line + i - 1
     local line_len = #line
diff --git a/lua/fugitive-ts/init.lua b/lua/fugitive-ts/init.lua
index 4247062..209a19c 100644
--- a/lua/fugitive-ts/init.lua
+++ b/lua/fugitive-ts/init.lua
@@ -2,6 +2,8 @@
 ---@field enabled boolean
 ---@field debug boolean
 ---@field languages table<string, string>
+---@field disabled_languages string[]
+---@field highlight_headers boolean
 ---@field debounce_ms integer
 ---@field max_lines_per_hunk integer
 
@@ -21,6 +23,8 @@ local default_config = {
   enabled = true,
   debug = false,
   languages = {},
+  disabled_languages = {},
+  highlight_headers = true,
   debounce_ms = 50,
   max_lines_per_hunk = 500,
 }
@@ -53,10 +57,18 @@ local function highlight_buffer(bufnr)
 
   vim.api.nvim_buf_clear_namespace(bufnr, ns, 0, -1)
 
-  local hunks = parser.parse_buffer(bufnr, config.languages, config.debug)
+  local hunks =
+    parser.parse_buffer(bufnr, config.languages, config.disabled_languages, config.debug)
   dbg('found %d hunks in buffer %d', #hunks, bufnr)
   for _, hunk in ipairs(hunks) do
-    highlight.highlight_hunk(bufnr, ns, hunk, config.max_lines_per_hunk, config.debug)
+    highlight.highlight_hunk(
+      bufnr,
+      ns,
+      hunk,
+      config.max_lines_per_hunk,
+      config.highlight_headers,
+      config.debug
+    )
   end
 end
 
diff --git a/lua/fugitive-ts/parser.lua b/lua/fugitive-ts/parser.lua
index fec0dda..67c84ee 100644
--- a/lua/fugitive-ts/parser.lua
+++ b/lua/fugitive-ts/parser.lua
@@ -2,6 +2,8 @@
 ---@field filename string
 ---@field lang string
 ---@field start_line integer
+---@field header_context string?
+---@field header_context_col integer?
 ---@field lines string[]
 
 local M = {}
@@ -15,9 +17,10 @@ end
 
 ---@param filename string
 ---@param custom_langs? table<string, string>
+---@param disabled_langs? string[]
 ---@param debug? boolean
 ---@return string?
-local function get_lang_from_filename(filename, custom_langs, debug)
+local function get_lang_from_filename(filename, custom_langs, disabled_langs, debug)
   if custom_langs and custom_langs[filename] then
     return custom_langs[filename]
   end
@@ -32,6 +35,12 @@ local function get_lang_from_filename(filename, custom_langs, debug)
 
   local lang = vim.treesitter.language.get_lang(ft)
   if lang then
+    if disabled_langs and vim.tbl_contains(disabled_langs, lang) then
+      if debug then
+        dbg('lang disabled: %s', lang)
+      end
+      return nil
+    end
     local ok = pcall(vim.treesitter.language.inspect, lang)
     if ok then
       return lang
@@ -48,9 +57,10 @@ end
 
 ---@param bufnr integer
 ---@param custom_langs? table<string, string>
+---@param disabled_langs? string[]
 ---@param debug? boolean
 ---@return fugitive-ts.Hunk[]
-function M.parse_buffer(bufnr, custom_langs, debug)
+function M.parse_buffer(bufnr, custom_langs, disabled_langs, debug)
   local lines = vim.api.nvim_buf_get_lines(bufnr, 0, -1, false)
   ---@type fugitive-ts.Hunk[]
   local hunks = {}
@@ -61,6 +71,10 @@ function M.parse_buffer(bufnr, custom_langs, debug)
   local current_lang = nil
   ---@type integer?
   local hunk_start = nil
+  ---@type string?
+  local hunk_header_context = nil
+  ---@type integer?
+  local hunk_header_context_col = nil
   ---@type string[]
   local hunk_lines = {}
 
@@ -70,10 +84,14 @@ function M.parse_buffer(bufnr, custom_langs, debug)
         filename = current_filename,
         lang = current_lang,
         start_line = hunk_start,
+        header_context = hunk_header_context,
+        header_context_col = hunk_header_context_col,
         lines = hunk_lines,
       })
     end
     hunk_start = nil
+    hunk_header_context = nil
+    hunk_header_context_col = nil
     hunk_lines = {}
   end
 
@@ -82,13 +100,18 @@ function M.parse_buffer(bufnr, custom_langs, debug)
     if filename then
       flush_hunk()
       current_filename = filename
-      current_lang = get_lang_from_filename(filename, custom_langs, debug)
+      current_lang = get_lang_from_filename(filename, custom_langs, disabled_langs, debug)
       if debug and current_lang then
         dbg('file: %s -> lang: %s', filename, current_lang)
       end
     elseif line:match('^@@.-@@') then
       flush_hunk()
       hunk_start = i
+      local prefix, context = line:match('^(@@.-@@%s*)(.*)')
+      if context and context ~= '' then
+        hunk_header_context = context
+        hunk_header_context_col = #prefix
+      end
     elseif hunk_start then
       local prefix = line:sub(1, 1)
       if prefix == ' ' or prefix == '+' or prefix == '-' then
diff --git a/scripts/test-env.sh b/scripts/test-env.sh
new file mode 100755
index 0000000..f0d967a
--- /dev/null
+++ b/scripts/test-env.sh
@@ -0,0 +1,93 @@
+#!/usr/bin/env bash
+set -e
+
+PLUGIN_DIR="$(cd "$(dirname "${BASH_SOURCE[0]}")/.." && pwd)"
+TEMP_DIR=$(mktemp -d)
+
+echo "Creating test environment in $TEMP_DIR"
+
+cd "$TEMP_DIR"
+git init -q
+
+cat > test.lua << 'EOF'
+local M = {}
+
+function M.hello()
+  local msg = "hello world"
+  print(msg)
+  return true
+end
+
+return M
+EOF
+
+cat > test.py << 'EOF'
+def hello():
+    msg = "hello world"
+    print(msg)
+    return True
+
+if __name__ == "__main__":
+    hello()
+EOF
+
+cat > test.js << 'EOF'
+function hello() {
+  const msg = "hello world";
+  console.log(msg);
+  return true;
+}
+
+module.exports = { hello };
+EOF
+
+git add -A
+git commit -q -m "initial commit"
+
+cat >> test.lua << 'EOF'
+
+function M.goodbye()
+  local msg = "goodbye world"
+  print(msg)
+  return false
+end
+EOF
+
+cat >> test.py << 'EOF'
+
+def goodbye():
+    msg = "goodbye world"
+    print(msg)
+    return False
+EOF
+
+cat >> test.js << 'EOF'
+
+function goodbye() {
+  const msg = "goodbye world";
+  console.log(msg);
+  return false;
+}
+EOF
+
+git add test.lua
+
+cat > init.lua << EOF
+vim.opt.rtp:prepend('$PLUGIN_DIR')
+vim.opt.rtp:prepend(vim.fn.stdpath('data') .. '/lazy/vim-fugitive')
+
+require('fugitive-ts').setup({
+  debug = true,
+})
+
+vim.cmd('Git')
+EOF
+
+echo "Test repo created with:"
+echo "  - test.lua (staged changes)"
+echo "  - test.py (unstaged changes)"
+echo "  - test.js (unstaged changes)"
+echo ""
+echo "Opening neovim with fugitive..."
+
+nvim -u init.lua