UPDATE JAN 2018 - especially for Sublime/Mac
(This is very similar to Marty F's reply, but addresses some issues from previous responses, combines several different suggestions and discusses the critical distinction that gave me problems at first.)
I'm using Sublime Text 3 (build 3143) on Mac and have been trying for about 30 minutes to find this File Compare feature. I had used it before on Sublime/Mac without any problems, but this time, it was trickier. But, I finally figured it out.
The file format does not need to be UTF-8. I have successfully compared files that are UTF-8, ISO-8559-1, and Windows-1252.
There is no File > Open Folders on Sublime/Mac. Many instructions above start with "Select File > Open Folders," but that doesn't exist on Sublime/Mac.
File compare works on a Project basis. If you want to compare two files, they must be saved to disk and part of the current project.
Ways to open a project
- If Sublime/Mac is not running or if it's running but no windows are open, drag a folder onto the Sublime app.
- If Sublime/Mac is running, select "File > Open", navigate to the desired folder, don't select a file or folder and click "Open".
Add a folder to a project. If the files you want to compare are not part of the same hierarchy, first open the folder containing one of the files. Then, select "Project > Add Folder to Project", navigate to the folder you want and click "Open". You will now see two root-level folders in your sidebar.
The Sidebar must be visible. You can either "View > Side Bar > Show Side Bar" or use the shortcut, Command-K, Command-B.
Files must be closed (ie, saved) to compare. Single-clicking a file in the Side Bar does not open the file, but it does display it. You can tell if a file is open if it's listed in the "Open Files" section at the top of the Side Bar. Double-clicking a file or making a modification to a file will automatically change a file's status to "Open". In this case, be sure to close it before trying to compare.
Select files from the folder hierarchy. Standard Mac shorcut here, (single) click the first file, then Command-click the second file. When you select the first file, you'll see its contents, but it's not open. Then, when you Command-click the second file, you'll see its contents, but again, neither are open. You'll notice only one tab in the editing panel.
Control-click is not the same as right-click. This was the one that got me. I use my trackpad and often resort to Control-click as a right-click or secondary-click. This does not work for me. However, since I configured my trackpad in System Preferences to use the bottom-right corner of my trackpad as a right-click, that worked, displaying the contextual menu, with "Delete", "Reveal in Finder", and.... "Diff Files..."
Voilà!