Method of diverting fluids in a subterranean formation including the steps of providing a first fluid comprising an aqueous fluid and a hydrophobically modified water-soluble relative permeability modifier; introducing the first fluid into a well bore such that the first treatment fluid penetrates into a portion of the subterranean formation in a sufficient amount so as to substantially divert a second treatment fluid to another portion of the subterranean formation. Then, a second aqueous fluid is introduced into the well bore and substantially diverted from the portion of the subterranean formation penetrated with the first treatment fluid. In some cases, a well treatment operation, such as acid stimulation operation, a clay stabilization operation, or a scale inhibition operation, is performed using the second fluid.