diff --git a/cmd/argocd/commands/app.go b/cmd/argocd/commands/app.go
index fcad08a346..a8c23ce8d8 100644
--- a/cmd/argocd/commands/app.go
+++ b/cmd/argocd/commands/app.go
@@ -818,8 +818,8 @@ func liveObjects(resources []*argoappv1.ResourceDiff) ([]*unstructured.Unstructu
 	return objs, nil
 }
 
-func getLocalObjects(app *argoappv1.Application, local, appLabelKey, kubeVersion string) []*unstructured.Unstructured {
-	manifestStrings := getLocalObjectsString(app, local, appLabelKey, kubeVersion, nil)
+func getLocalObjects(app *argoappv1.Application, local, appLabelKey, kubeVersion string, kustomizeOptions *argoappv1.KustomizeOptions) []*unstructured.Unstructured {
+	manifestStrings := getLocalObjectsString(app, local, appLabelKey, kubeVersion, kustomizeOptions)
 	objs := make([]*unstructured.Unstructured, len(manifestStrings))
 	for i := range manifestStrings {
 		obj := unstructured.Unstructured{}
@@ -920,7 +920,7 @@ func NewApplicationDiffCommand(clientOpts *argocdclient.ClientOptions) *cobra.Co
 				cluster, err := clusterIf.Get(context.Background(), &clusterpkg.ClusterQuery{Server: app.Spec.Destination.Server})
 				errors.CheckError(err)
 				util.Close(conn)
-				localObjs := groupLocalObjs(getLocalObjects(app, local, argoSettings.AppLabelKey, cluster.ServerVersion), liveObjs, app.Spec.Destination.Namespace)
+				localObjs := groupLocalObjs(getLocalObjects(app, local, argoSettings.AppLabelKey, cluster.ServerVersion, argoSettings.KustomizeOptions), liveObjs, app.Spec.Destination.Namespace)
 				for _, res := range resources.Items {
 					var live = &unstructured.Unstructured{}
 					err := json.Unmarshal([]byte(res.LiveState), &live)