Data engineering workflows require reliable differencing across files, databases, and query outputs, yet existing tools falter under schema drift, heterogeneous types, and limited explainability. SmartDiff is a unified system that combines schema-aware mapping, type-specific comparators, and parallel execution. It aligns evolving schemas, compares structured and semi-structured data (strings, numbers, dates, JSON/XML), and clusters results with labels that explain how and why differences occur. On multi-million-row datasets, SmartDiff achieves over 95 percent precision and recall, runs 30 to 40 percent faster, and uses 30 to 50 percent less memory than baselines; in user studies, it reduces root-cause analysis time from 10 hours to 12 minutes. An LLM-assisted labeling pipeline produces deterministic, schema-valid multilabel explanations using retrieval augmentation and constrained decoding; ablations show further gains in label accuracy and time to diagnosis over rules-only baselines. These results indicate SmartDiff's utility for migration validation, regression testing, compliance auditing, and continuous data quality monitoring. Index Terms: data differencing, schema evolution, data quality, parallel processing, clustering, explainable validation, big data