More than 200 samples of diamonds from the Snap Lake dyke system in Canada were studied in details using optical and EPR spectroscopy. About 30% of them were colorless or slightly greenish tinted and were related to IaB type with a high aggregation level of defects: N3 (N3V), B nitrogen centers (N4V0) and clusters of interstitials (B′ centers). Traces of heavy plastic deformation in the crystals were found by X-ray techniques. Visual examination of photoluminescence (PL) of another batch of samples shows one type emission: a blue core surrounded by a green shell. As a rule these diamonds were colored in brownish to greenish tints and belong to the IaA type containing predominantly N–N nitrogen aggregates.Specific features of type IaB diamonds are a dominant broad line in the P2 EPR spectrum and an unusually high concentration of nitrogen in a single substitutional form, NS0. We suggest that this uncommon combination was produced naturally by the destruction of B-centers (N4V0) during plastic deformation. When IaA and IaB diamonds are heated, movement of dislocations throughout the crystal causes further decomposition of the complicated nitrogen defects (A, B), producing simpler nitrogen forms: P1, P2 and H3 centers. Analysis of light illumination effects on the IaB type diamonds revealed that some of these defects are in different charge states and the color of plastically deformed crystals is believed to be due to the charge transfer between the nitrogen defects and the dislocation core. Results of the current study suggest that a line broadening in P2/N3 and H3 systems and thus unusual ratio between strengths of the zero phonon lines and vibronic bands in PL spectra are related to the lattice distortion because of nearby dislocations. The sharp 1332 cm− 1 IR peak in these samples is due to NS+ rather than to B-centers.The PL 490.7 nm center, most manifesting itself in plastically deformed IaA diamonds, is first shown to be always accompanied by PL blue systems at 406 and 423 nm and to correlate with EPR signal from dangling bonds in the dislocation cores.