diff --git a/common/src/model_types.rs b/common/src/model_types.rs
index db744103a..92d19d4e0 100644
--- a/common/src/model_types.rs
+++ b/common/src/model_types.rs
@@ -46,6 +46,8 @@ pub enum ModelType {
     KAN,
     /// Extended LSTM (sLSTM + mLSTM)
     XLSTM,
+    /// Diffusion model (DDPM/DDIM) for price path generation
+    Diffusion,
 }
 
 impl ModelType {
@@ -66,6 +68,7 @@ impl ModelType {
             Self::Ensemble => "ensemble",
             Self::KAN => "kan",
             Self::XLSTM => "xlstm",
+            Self::Diffusion => "diffusion",
         }
     }
 
@@ -84,6 +87,7 @@ impl ModelType {
             Self::Ensemble => "ensemble",
             Self::KAN => "kan",
             Self::XLSTM => "xlstm",
+            Self::Diffusion => "diffusion",
         }
     }
 
@@ -102,6 +106,7 @@ impl ModelType {
             Self::Transformer => "transformer",
             Self::KAN => "kan",
             Self::XLSTM => "xlstm",
+            Self::Diffusion => "diffusion",
         }
     }
 
@@ -122,6 +127,7 @@ impl ModelType {
             Self::Ensemble => "ENSEMBLE",
             Self::KAN => "KAN",
             Self::XLSTM => "XLSTM",
+            Self::Diffusion => "DIFFUSION",
         }
     }
 
@@ -148,6 +154,7 @@ impl ModelType {
             "ensemble" => Some(Self::Ensemble),
             "kan" => Some(Self::KAN),
             "xlstm" | "x-lstm" | "extended_lstm" => Some(Self::XLSTM),
+            "diffusion" | "ddpm" | "ddim" => Some(Self::Diffusion),
             _ => None,
         }
     }
diff --git a/ml/src/diffusion/config.rs b/ml/src/diffusion/config.rs
new file mode 100644
index 000000000..1852b5050
--- /dev/null
+++ b/ml/src/diffusion/config.rs
@@ -0,0 +1,104 @@
+//! Configuration for Diffusion model (DDPM/DDIM) for price path generation.
+
+use serde::{Deserialize, Serialize};
+
+/// Noise schedule type for the diffusion process.
+#[derive(Debug, Clone, Serialize, Deserialize)]
+pub enum NoiseSchedule {
+    /// Linear beta schedule from beta_start to beta_end.
+    Linear,
+    /// Cosine schedule (Nichol & Dhariwal) — smoother noise progression.
+    Cosine,
+}
+
+impl Default for NoiseSchedule {
+    fn default() -> Self {
+        Self::Cosine
+    }
+}
+
+/// Configuration for a Diffusion model.
+///
+/// OOM-safe defaults: small channels, short sequences, few res blocks.
+/// RTX 3050 Ti (4GB) safe at batch_size <= 32.
+#[derive(Debug, Clone, Serialize, Deserialize)]
+pub struct DiffusionConfig {
+    /// Number of diffusion timesteps (training noise levels).
+    pub num_timesteps: usize,
+    /// Number of DDIM sampling steps (inference, << num_timesteps).
+    pub sampling_steps: usize,
+    /// Sequence length of generated price paths.
+    pub seq_len: usize,
+    /// Feature dimension per timestep (1 = univariate price).
+    pub feature_dim: usize,
+    /// Hidden dimension for the denoiser network.
+    pub hidden_dim: usize,
+    /// Number of denoiser layers.
+    pub num_layers: usize,
+    /// Time embedding dimension.
+    pub time_embed_dim: usize,
+    /// Noise schedule type.
+    pub schedule: NoiseSchedule,
+    /// Learning rate.
+    pub learning_rate: f64,
+    /// Weight decay for regularization.
+    pub weight_decay: f64,
+    /// Gradient clipping max norm.
+    pub grad_clip: f64,
+}
+
+impl Default for DiffusionConfig {
+    fn default() -> Self {
+        Self {
+            num_timesteps: 1000,
+            sampling_steps: 10,
+            seq_len: 64,
+            feature_dim: 1,
+            hidden_dim: 128,
+            num_layers: 3,
+            time_embed_dim: 32,
+            schedule: NoiseSchedule::Cosine,
+            learning_rate: 1e-4,
+            weight_decay: 1e-4,
+            grad_clip: 1.0,
+        }
+    }
+}
+
+impl DiffusionConfig {
+    /// Total data dimension (seq_len * feature_dim).
+    pub fn data_dim(&self) -> usize {
+        self.seq_len * self.feature_dim
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[test]
+    fn test_default_config() {
+        let config = DiffusionConfig::default();
+        assert_eq!(config.num_timesteps, 1000);
+        assert_eq!(config.sampling_steps, 10);
+        assert_eq!(config.data_dim(), 64);
+    }
+
+    #[test]
+    fn test_data_dim_multivariate() {
+        let config = DiffusionConfig {
+            seq_len: 32,
+            feature_dim: 4,
+            ..Default::default()
+        };
+        assert_eq!(config.data_dim(), 128);
+    }
+
+    #[test]
+    fn test_serde_roundtrip() {
+        let config = DiffusionConfig::default();
+        let json = serde_json::to_string(&config).unwrap_or_default();
+        let restored: Result<DiffusionConfig, _> = serde_json::from_str(&json);
+        assert!(restored.is_ok());
+    }
+}
diff --git a/ml/src/diffusion/denoiser.rs b/ml/src/diffusion/denoiser.rs
new file mode 100644
index 000000000..4678bc70b
--- /dev/null
+++ b/ml/src/diffusion/denoiser.rs
@@ -0,0 +1,265 @@
+//! Denoiser network for the diffusion model.
+//!
+//! Uses a fully-connected architecture with sinusoidal time embedding.
+//! This is more memory-efficient than Conv1D U-Net while still effective
+//! for price sequence denoising at small sequence lengths (64-128).
+
+use crate::MLError;
+use candle_core::{DType, Device, Tensor};
+use candle_nn::{linear, Linear, Module, VarBuilder};
+
+/// Sinusoidal time embedding for diffusion timestep conditioning.
+///
+/// Maps scalar timestep t to a fixed-dimension vector using
+/// sin/cos positional encoding (same idea as Transformer PE).
+pub struct TimeEmbedding {
+    proj: Linear,
+    embed_dim: usize,
+}
+
+impl TimeEmbedding {
+    pub fn new(embed_dim: usize, hidden_dim: usize, vb: VarBuilder) -> Result<Self, MLError> {
+        let proj = linear(embed_dim, hidden_dim, vb.pp("time_proj"))
+            .map_err(|e| MLError::ModelError(e.to_string()))?;
+        Ok(Self { proj, embed_dim })
+    }
+
+    /// Compute sinusoidal embedding for timestep indices.
+    /// Input: (batch,) u32 timestep indices → Output: (batch, hidden_dim)
+    pub fn forward(&self, t: &Tensor, device: &Device) -> Result<Tensor, MLError> {
+        let half_dim = self.embed_dim / 2;
+        let t_f32 = t.to_dtype(DType::F32)
+            .map_err(|e| MLError::ModelError(e.to_string()))?;
+
+        // freq[i] = exp(-ln(10000) * i / half_dim)
+        let mut freq_vals = Vec::with_capacity(half_dim);
+        for i in 0..half_dim {
+            let freq = (-(10000.0_f64.ln()) * i as f64 / half_dim.max(1) as f64).exp();
+            freq_vals.push(freq as f32);
+        }
+        let freqs = Tensor::new(freq_vals, device)
+            .map_err(|e| MLError::ModelError(e.to_string()))?;
+
+        // (batch, 1) * (1, half_dim) → (batch, half_dim)
+        let t_expanded = t_f32.unsqueeze(1)
+            .map_err(|e| MLError::ModelError(e.to_string()))?;
+        let freqs_expanded = freqs.unsqueeze(0)
+            .map_err(|e| MLError::ModelError(e.to_string()))?;
+        let angles = t_expanded.broadcast_mul(&freqs_expanded)
+            .map_err(|e| MLError::ModelError(e.to_string()))?;
+
+        let sin_emb = angles.sin()
+            .map_err(|e| MLError::ModelError(e.to_string()))?;
+        let cos_emb = angles.cos()
+            .map_err(|e| MLError::ModelError(e.to_string()))?;
+
+        // Concat sin and cos: (batch, embed_dim)
+        let emb = Tensor::cat(&[&sin_emb, &cos_emb], 1)
+            .map_err(|e| MLError::ModelError(e.to_string()))?;
+
+        // Project to hidden_dim
+        self.proj.forward(&emb)
+            .map_err(|e| MLError::ModelError(e.to_string()))
+    }
+}
+
+/// A single denoiser block: linear → SiLU → linear + time conditioning + residual.
+struct DenoiserBlock {
+    fc1: Linear,
+    fc2: Linear,
+    time_proj: Linear,
+    has_residual: bool,
+}
+
+impl DenoiserBlock {
+    fn new(
+        input_dim: usize,
+        hidden_dim: usize,
+        time_dim: usize,
+        vb: VarBuilder,
+    ) -> Result<Self, MLError> {
+        let fc1 = linear(input_dim, hidden_dim, vb.pp("fc1"))
+            .map_err(|e| MLError::ModelError(e.to_string()))?;
+        let fc2 = linear(hidden_dim, hidden_dim, vb.pp("fc2"))
+            .map_err(|e| MLError::ModelError(e.to_string()))?;
+        let time_proj = linear(time_dim, hidden_dim, vb.pp("time"))
+            .map_err(|e| MLError::ModelError(e.to_string()))?;
+        Ok(Self {
+            fc1,
+            fc2,
+            time_proj,
+            has_residual: input_dim == hidden_dim,
+        })
+    }
+
+    fn forward(&self, x: &Tensor, t_emb: &Tensor) -> Result<Tensor, MLError> {
+        let map_err = |e: candle_core::Error| MLError::ModelError(e.to_string());
+
+        // fc1 → SiLU (x * sigmoid(x))
+        let h = self.fc1.forward(x).map_err(map_err)?;
+        let h_sig = candle_nn::ops::sigmoid(&h).map_err(map_err)?;
+        let h = h.mul(&h_sig).map_err(map_err)?;
+
+        // Add time embedding
+        let t_proj = self.time_proj.forward(t_emb).map_err(map_err)?;
+        let h = h.add(&t_proj).map_err(map_err)?;
+
+        // fc2 → SiLU
+        let h = self.fc2.forward(&h).map_err(map_err)?;
+        let h_sig2 = candle_nn::ops::sigmoid(&h).map_err(map_err)?;
+        let h = h.mul(&h_sig2).map_err(map_err)?;
+
+        // Residual connection
+        if self.has_residual {
+            h.add(x).map_err(map_err)
+        } else {
+            Ok(h)
+        }
+    }
+}
+
+/// Fully-connected denoiser network for diffusion.
+///
+/// Architecture: input projection → N denoiser blocks → output projection.
+/// Each block is time-conditioned via additive time embedding.
+///
+/// Memory usage at batch_size=32, data_dim=64, hidden=128:
+///   ~32 * 128 * num_layers * 4 bytes per layer ≈ 48KB — very safe for 4GB GPU.
+pub struct Denoiser {
+    input_proj: Linear,
+    blocks: Vec<DenoiserBlock>,
+    output_proj: Linear,
+    time_embed: TimeEmbedding,
+    device: Device,
+}
+
+impl Denoiser {
+    pub fn new(
+        data_dim: usize,
+        hidden_dim: usize,
+        num_layers: usize,
+        time_embed_dim: usize,
+        vb: VarBuilder,
+        device: &Device,
+    ) -> Result<Self, MLError> {
+        let time_embed = TimeEmbedding::new(time_embed_dim, hidden_dim, vb.pp("time_embed"))?;
+
+        let input_proj = linear(data_dim, hidden_dim, vb.pp("input_proj"))
+            .map_err(|e| MLError::ModelError(e.to_string()))?;
+
+        let mut blocks = Vec::with_capacity(num_layers);
+        for i in 0..num_layers {
+            let block = DenoiserBlock::new(
+                hidden_dim,
+                hidden_dim,
+                hidden_dim,
+                vb.pp(format!("block_{i}")),
+            )?;
+            blocks.push(block);
+        }
+
+        let output_proj = linear(hidden_dim, data_dim, vb.pp("output_proj"))
+            .map_err(|e| MLError::ModelError(e.to_string()))?;
+
+        Ok(Self {
+            input_proj,
+            blocks,
+            output_proj,
+            time_embed,
+            device: device.clone(),
+        })
+    }
+
+    /// Predict noise epsilon given noisy input x_t and timestep t.
+    ///
+    /// Input x: (batch, data_dim), t: (batch,) → Output: (batch, data_dim)
+    pub fn forward(&self, x: &Tensor, t: &Tensor) -> Result<Tensor, MLError> {
+        let map_err = |e: candle_core::Error| MLError::ModelError(e.to_string());
+
+        // Time embedding
+        let t_emb = self.time_embed.forward(t, &self.device)?;
+
+        // Input projection → SiLU
+        let mut h = self.input_proj.forward(x).map_err(map_err)?;
+        let h_sig = candle_nn::ops::sigmoid(&h).map_err(map_err)?;
+        h = h.mul(&h_sig).map_err(map_err)?;
+
+        // Denoiser blocks
+        for block in &self.blocks {
+            h = block.forward(&h, &t_emb)?;
+        }
+
+        // Output projection → predicted noise
+        self.output_proj.forward(&h).map_err(map_err)
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use candle_nn::VarMap;
+
+    #[test]
+    fn test_time_embedding_shape() {
+        let dev = Device::Cpu;
+        let var_map = VarMap::new();
+        let vb = VarBuilder::from_varmap(&var_map, DType::F32, &dev);
+        let te = TimeEmbedding::new(32, 64, vb).unwrap();
+        let t = Tensor::new(&[0u32, 100, 500, 999], &dev).unwrap();
+        let emb = te.forward(&t, &dev).unwrap();
+        assert_eq!(emb.dims(), &[4, 64]);
+    }
+
+    #[test]
+    fn test_time_embedding_different_timesteps_differ() {
+        let dev = Device::Cpu;
+        let var_map = VarMap::new();
+        let vb = VarBuilder::from_varmap(&var_map, DType::F32, &dev);
+        let te = TimeEmbedding::new(32, 64, vb).unwrap();
+        let t1 = Tensor::new(&[0u32], &dev).unwrap();
+        let t2 = Tensor::new(&[500u32], &dev).unwrap();
+        let e1 = te.forward(&t1, &dev).unwrap();
+        let e2 = te.forward(&t2, &dev).unwrap();
+        let diff: f32 = e1.sub(&e2).unwrap().abs().unwrap().sum_all().unwrap().to_scalar().unwrap();
+        assert!(diff > 0.0, "Different timesteps should produce different embeddings");
+    }
+
+    #[test]
+    fn test_denoiser_output_shape() {
+        let dev = Device::Cpu;
+        let var_map = VarMap::new();
+        let vb = VarBuilder::from_varmap(&var_map, DType::F32, &dev);
+        let denoiser = Denoiser::new(64, 128, 3, 32, vb, &dev).unwrap();
+        let x = Tensor::randn(0f32, 1.0, &[4, 64], &dev).unwrap();
+        let t = Tensor::new(&[100u32, 200, 300, 400], &dev).unwrap();
+        let out = denoiser.forward(&x, &t).unwrap();
+        assert_eq!(out.dims(), &[4, 64], "Output should match input shape");
+    }
+
+    #[test]
+    fn test_denoiser_produces_gradients() {
+        let dev = Device::Cpu;
+        let var_map = VarMap::new();
+        let vb = VarBuilder::from_varmap(&var_map, DType::F32, &dev);
+        let denoiser = Denoiser::new(64, 128, 2, 32, vb, &dev).unwrap();
+        let x = Tensor::randn(0f32, 1.0, &[4, 64], &dev).unwrap();
+        let t = Tensor::new(&[50u32, 100, 200, 300], &dev).unwrap();
+        let out = denoiser.forward(&x, &t).unwrap();
+        let loss = out.sqr().unwrap().mean_all().unwrap();
+        let grads = loss.backward().unwrap();
+        let has_grads = var_map.all_vars().iter().any(|v| grads.get(v.as_tensor()).is_some());
+        assert!(has_grads, "Should produce gradients for training");
+    }
+
+    #[test]
+    fn test_denoiser_single_layer() {
+        let dev = Device::Cpu;
+        let var_map = VarMap::new();
+        let vb = VarBuilder::from_varmap(&var_map, DType::F32, &dev);
+        let denoiser = Denoiser::new(32, 64, 1, 16, vb, &dev).unwrap();
+        let x = Tensor::randn(0f32, 1.0, &[2, 32], &dev).unwrap();
+        let t = Tensor::new(&[0u32, 999], &dev).unwrap();
+        let out = denoiser.forward(&x, &t).unwrap();
+        assert_eq!(out.dims(), &[2, 32]);
+    }
+}
diff --git a/ml/src/diffusion/mod.rs b/ml/src/diffusion/mod.rs
new file mode 100644
index 000000000..d4c8f6d7d
--- /dev/null
+++ b/ml/src/diffusion/mod.rs
@@ -0,0 +1,19 @@
+//! Diffusion model (DDPM/DDIM) for price path generation.
+//!
+//! Implements a denoising diffusion probabilistic model with:
+//! - Cosine/linear noise schedules
+//! - Fully-connected denoiser with sinusoidal time embedding
+//! - DDIM sampling for fast inference
+//! - UnifiedTrainable adapter for the training pipeline
+
+pub mod config;
+pub mod denoiser;
+pub mod noise;
+pub mod sampler;
+pub mod trainable;
+
+pub use config::{DiffusionConfig, NoiseSchedule};
+pub use denoiser::Denoiser;
+pub use noise::NoiseScheduler;
+pub use sampler::DDIMSampler;
+pub use trainable::DiffusionTrainableAdapter;
diff --git a/ml/src/diffusion/noise.rs b/ml/src/diffusion/noise.rs
new file mode 100644
index 000000000..8381e1996
--- /dev/null
+++ b/ml/src/diffusion/noise.rs
@@ -0,0 +1,217 @@
+//! Noise scheduler for the diffusion process.
+//!
+//! Precomputes alpha_bar_t for all timesteps and provides
+//! forward process (add noise) operations.
+
+use crate::MLError;
+use candle_core::{DType, Device, Tensor};
+
+use super::config::NoiseSchedule;
+
+/// Precomputed noise schedule for the diffusion process.
+///
+/// Stores alpha_bar_t (cumulative product of (1 - beta_t)) for
+/// all T timesteps, enabling efficient forward-process noise addition.
+pub struct NoiseScheduler {
+    /// Cumulative alpha products: alpha_bar_t for each timestep.
+    alpha_bars: Vec<f32>,
+    num_timesteps: usize,
+    device: Device,
+}
+
+impl NoiseScheduler {
+    /// Create a new noise scheduler with precomputed schedule.
+    pub fn new(
+        num_timesteps: usize,
+        schedule: &NoiseSchedule,
+        device: &Device,
+    ) -> Result<Self, MLError> {
+        if num_timesteps == 0 {
+            return Err(MLError::ConfigError {
+                reason: "num_timesteps must be > 0".to_string(),
+            });
+        }
+
+        let alpha_bars = match schedule {
+            NoiseSchedule::Linear => Self::linear_schedule(num_timesteps),
+            NoiseSchedule::Cosine => Self::cosine_schedule(num_timesteps),
+        };
+
+        Ok(Self {
+            alpha_bars,
+            num_timesteps,
+            device: device.clone(),
+        })
+    }
+
+    /// Linear beta schedule: beta linearly from 1e-4 to 0.02.
+    fn linear_schedule(t_max: usize) -> Vec<f32> {
+        let beta_start = 1e-4_f64;
+        let beta_end = 0.02_f64;
+        let mut alpha_bars = Vec::with_capacity(t_max);
+        let mut cumulative = 1.0_f64;
+        for i in 0..t_max {
+            let beta = beta_start + (beta_end - beta_start) * (i as f64 / (t_max - 1).max(1) as f64);
+            cumulative *= 1.0 - beta;
+            alpha_bars.push(cumulative as f32);
+        }
+        alpha_bars
+    }
+
+    /// Cosine schedule (Nichol & Dhariwal 2021).
+    /// alpha_bar_t = cos((t/T + s) / (1+s) * pi/2)^2
+    fn cosine_schedule(t_max: usize) -> Vec<f32> {
+        let s = 0.008_f64; // Small offset to prevent beta_0 = 0
+        let mut alpha_bars = Vec::with_capacity(t_max);
+        for i in 0..t_max {
+            let t_frac = i as f64 / t_max as f64;
+            let angle = (t_frac + s) / (1.0 + s) * std::f64::consts::FRAC_PI_2;
+            let alpha_bar = angle.cos().powi(2);
+            alpha_bars.push(alpha_bar as f32);
+        }
+        // Normalize so alpha_bar[0] ≈ 1.0
+        let first = alpha_bars.first().copied().unwrap_or(1.0);
+        if first > 0.0 {
+            for ab in &mut alpha_bars {
+                *ab /= first;
+            }
+        }
+        alpha_bars
+    }
+
+    /// Get alpha_bar for a specific timestep.
+    pub fn get_alpha_bar(&self, t: usize) -> Result<f32, MLError> {
+        self.alpha_bars
+            .get(t)
+            .copied()
+            .ok_or_else(|| MLError::ConfigError {
+                reason: format!("Timestep {} out of range (max {})", t, self.num_timesteps),
+            })
+    }
+
+    /// Forward process: add noise to clean data x0 at timestep t.
+    ///
+    /// q(x_t | x_0) = N(sqrt(alpha_bar_t) * x_0, (1 - alpha_bar_t) * I)
+    ///
+    /// Returns (noisy_x, noise) where noise is the sampled epsilon.
+    pub fn add_noise(
+        &self,
+        x0: &Tensor,
+        t: usize,
+    ) -> Result<(Tensor, Tensor), MLError> {
+        let alpha_bar = self.get_alpha_bar(t)?;
+        let sqrt_alpha_bar = alpha_bar.sqrt();
+        let sqrt_one_minus_alpha_bar = (1.0_f32 - alpha_bar).max(0.0_f32).sqrt();
+
+        // Sample noise epsilon ~ N(0, I)
+        let noise = Tensor::randn(0f32, 1.0, x0.dims(), &self.device)
+            .map_err(|e| MLError::ModelError(e.to_string()))?;
+
+        // x_t = sqrt(alpha_bar_t) * x_0 + sqrt(1 - alpha_bar_t) * epsilon
+        let signal = x0.affine(sqrt_alpha_bar as f64, 0.0)
+            .map_err(|e| MLError::ModelError(e.to_string()))?;
+        let noise_scaled = noise.affine(sqrt_one_minus_alpha_bar as f64, 0.0)
+            .map_err(|e| MLError::ModelError(e.to_string()))?;
+        let noisy = signal.add(&noise_scaled)
+            .map_err(|e| MLError::ModelError(e.to_string()))?;
+
+        Ok((noisy, noise))
+    }
+
+    /// Get alpha_bar as a tensor (scalar) for a given timestep.
+    pub fn alpha_bar_tensor(&self, t: usize) -> Result<Tensor, MLError> {
+        let ab = self.get_alpha_bar(t)?;
+        Tensor::new(&[ab], &self.device)
+            .map_err(|e| MLError::ModelError(e.to_string()))
+    }
+
+    /// Number of timesteps.
+    pub fn num_timesteps(&self) -> usize {
+        self.num_timesteps
+    }
+
+    /// Get alpha_bars slice for DDIM sampling.
+    pub fn alpha_bars(&self) -> &[f32] {
+        &self.alpha_bars
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[test]
+    fn test_linear_schedule_decreasing() {
+        let sched = NoiseScheduler::new(1000, &NoiseSchedule::Linear, &Device::Cpu).unwrap();
+        let a0 = sched.get_alpha_bar(0).unwrap();
+        let a500 = sched.get_alpha_bar(500).unwrap();
+        let a999 = sched.get_alpha_bar(999).unwrap();
+        assert!(a0 > a500, "a0={a0} should be > a500={a500}");
+        assert!(a500 > a999, "a500={a500} should be > a999={a999}");
+    }
+
+    #[test]
+    fn test_cosine_schedule_decreasing() {
+        let sched = NoiseScheduler::new(1000, &NoiseSchedule::Cosine, &Device::Cpu).unwrap();
+        let a0 = sched.get_alpha_bar(0).unwrap();
+        let a500 = sched.get_alpha_bar(500).unwrap();
+        let a999 = sched.get_alpha_bar(999).unwrap();
+        assert!(a0 > a500, "a0={a0} should be > a500={a500}");
+        assert!(a500 > a999, "a500={a500} should be > a999={a999}");
+    }
+
+    #[test]
+    fn test_alpha_bar_first_near_one() {
+        let sched = NoiseScheduler::new(1000, &NoiseSchedule::Cosine, &Device::Cpu).unwrap();
+        let a0 = sched.get_alpha_bar(0).unwrap();
+        assert!((a0 - 1.0).abs() < 0.05, "First alpha_bar should be near 1.0, got {a0}");
+    }
+
+    #[test]
+    fn test_alpha_bar_last_near_zero() {
+        let sched = NoiseScheduler::new(1000, &NoiseSchedule::Cosine, &Device::Cpu).unwrap();
+        let a_last = sched.get_alpha_bar(999).unwrap();
+        assert!(a_last < 0.1, "Last alpha_bar should be near 0, got {a_last}");
+    }
+
+    #[test]
+    fn test_add_noise_preserves_shape() {
+        let sched = NoiseScheduler::new(1000, &NoiseSchedule::Cosine, &Device::Cpu).unwrap();
+        let x = Tensor::ones(&[4, 64], DType::F32, &Device::Cpu).unwrap();
+        let (noisy, noise) = sched.add_noise(&x, 100).unwrap();
+        assert_eq!(noisy.dims(), &[4, 64]);
+        assert_eq!(noise.dims(), &[4, 64]);
+    }
+
+    #[test]
+    fn test_add_noise_at_t0_preserves_signal() {
+        let sched = NoiseScheduler::new(1000, &NoiseSchedule::Cosine, &Device::Cpu).unwrap();
+        let x = Tensor::ones(&[4, 64], DType::F32, &Device::Cpu).unwrap();
+        let (noisy, _noise) = sched.add_noise(&x, 0).unwrap();
+        let diff: f32 = noisy.sub(&x).unwrap().abs().unwrap().mean_all().unwrap()
+            .to_scalar().unwrap();
+        assert!(diff < 0.5, "t=0 should add minimal noise, got diff={diff}");
+    }
+
+    #[test]
+    fn test_add_noise_at_high_t_destroys_signal() {
+        let sched = NoiseScheduler::new(1000, &NoiseSchedule::Cosine, &Device::Cpu).unwrap();
+        let x = Tensor::ones(&[4, 64], DType::F32, &Device::Cpu).unwrap();
+        let (noisy, _noise) = sched.add_noise(&x, 999).unwrap();
+        // At high t, noisy should be mostly noise (mean near 0)
+        let mean: f32 = noisy.mean_all().unwrap().to_scalar().unwrap();
+        assert!(mean.abs() < 1.5, "At t=999, signal should be destroyed, mean={mean}");
+    }
+
+    #[test]
+    fn test_out_of_range_errors() {
+        let sched = NoiseScheduler::new(100, &NoiseSchedule::Linear, &Device::Cpu).unwrap();
+        assert!(sched.get_alpha_bar(100).is_err());
+    }
+
+    #[test]
+    fn test_zero_timesteps_errors() {
+        let result = NoiseScheduler::new(0, &NoiseSchedule::Linear, &Device::Cpu);
+        assert!(result.is_err());
+    }
+}
diff --git a/ml/src/diffusion/sampler.rs b/ml/src/diffusion/sampler.rs
new file mode 100644
index 000000000..7b1dbe464
--- /dev/null
+++ b/ml/src/diffusion/sampler.rs
@@ -0,0 +1,235 @@
+//! DDIM (Denoising Diffusion Implicit Models) sampler.
+//!
+//! Provides deterministic, fast sampling from a trained diffusion model
+//! using a small number of steps (e.g., 10) instead of the full T=1000.
+
+use crate::MLError;
+use candle_core::{DType, Device, Tensor};
+
+use super::denoiser::Denoiser;
+use super::noise::NoiseScheduler;
+
+/// DDIM sampler for fast, deterministic inference.
+///
+/// Given a trained denoiser and noise scheduler, generates samples
+/// by iteratively denoising from pure noise using uniformly spaced
+/// timestep subsequence.
+pub struct DDIMSampler {
+    /// Number of DDIM steps (much less than training timesteps).
+    num_steps: usize,
+    /// Total training timesteps.
+    num_timesteps: usize,
+    /// DDIM eta parameter: 0.0 = deterministic, 1.0 = DDPM.
+    eta: f32,
+}
+
+impl DDIMSampler {
+    /// Create a new DDIM sampler.
+    ///
+    /// `num_steps`: number of denoising steps (e.g., 10-50).
+    /// `num_timesteps`: total training timesteps (e.g., 1000).
+    /// `eta`: stochasticity parameter (0.0 for deterministic).
+    pub fn new(num_steps: usize, num_timesteps: usize, eta: f32) -> Self {
+        Self {
+            num_steps: num_steps.max(1),
+            num_timesteps,
+            eta,
+        }
+    }
+
+    /// Compute the uniformly spaced timestep subsequence for DDIM.
+    fn timestep_sequence(&self) -> Vec<usize> {
+        let mut seq = Vec::with_capacity(self.num_steps);
+        for i in 0..self.num_steps {
+            // Reverse order: from T-1 down to 0
+            let t = ((self.num_timesteps - 1) as f64 * (1.0 - i as f64 / self.num_steps.max(1) as f64)) as usize;
+            seq.push(t.min(self.num_timesteps - 1));
+        }
+        seq
+    }
+
+    /// Generate samples from pure noise using DDIM.
+    ///
+    /// `denoiser`: the trained noise prediction network.
+    /// `scheduler`: noise schedule with alpha_bar values.
+    /// `num_samples`: number of samples to generate.
+    /// `data_dim`: dimension of each sample.
+    /// `device`: computation device.
+    ///
+    /// Returns: (num_samples, data_dim) tensor.
+    pub fn sample(
+        &self,
+        denoiser: &Denoiser,
+        scheduler: &NoiseScheduler,
+        num_samples: usize,
+        data_dim: usize,
+        device: &Device,
+    ) -> Result<Tensor, MLError> {
+        let map_err = |e: candle_core::Error| MLError::ModelError(e.to_string());
+
+        // Start from pure noise
+        let mut x_t = Tensor::randn(0f32, 1.0, &[num_samples, data_dim], device)
+            .map_err(map_err)?;
+
+        let timesteps = self.timestep_sequence();
+
+        for (i, &t) in timesteps.iter().enumerate() {
+            // Create timestep tensor for batch
+            let t_tensor = Tensor::new(
+                vec![t as u32; num_samples],
+                device,
+            ).map_err(map_err)?;
+
+            // Predict noise
+            let eps_pred = denoiser.forward(&x_t, &t_tensor)?;
+
+            let alpha_bar_t: f32 = scheduler.get_alpha_bar(t)?;
+
+            // Get alpha_bar for next timestep (or 1.0 at the end)
+            let alpha_bar_prev: f32 = if i + 1 < timesteps.len() {
+                let t_prev = timesteps.get(i + 1).copied().unwrap_or(0);
+                scheduler.get_alpha_bar(t_prev)?
+            } else {
+                1.0_f32 // Final step: fully denoised
+            };
+
+            // DDIM update rule:
+            // predicted x_0 = (x_t - sqrt(1 - alpha_bar_t) * eps) / sqrt(alpha_bar_t)
+            let sqrt_ab = alpha_bar_t.sqrt();
+            let sqrt_one_minus_ab = (1.0_f32 - alpha_bar_t).max(0.0_f32).sqrt();
+
+            // Predicted clean sample:
+            // x0 = (x_t - sqrt(1-ab)*eps) / sqrt(ab)
+            let scale = 1.0_f64 / sqrt_ab.max(1e-8) as f64;
+            let noise_sub = eps_pred.affine(sqrt_one_minus_ab as f64, 0.0).map_err(map_err)?;
+            let x0_pred = x_t.sub(&noise_sub).map_err(map_err)?
+                .affine(scale, 0.0).map_err(map_err)?;
+
+            // Direction pointing to x_t
+            let sqrt_one_minus_ab_prev = (1.0_f32 - alpha_bar_prev).max(0.0_f32).sqrt();
+
+            // Compute sigma for stochasticity
+            let sigma: f32 = if self.eta > 0.0_f32 {
+                let ratio = (1.0_f32 - alpha_bar_prev) / (1.0_f32 - alpha_bar_t).max(1e-8_f32);
+                let beta_t = 1.0_f32 - alpha_bar_t / alpha_bar_prev.max(1e-8_f32);
+                self.eta * (ratio * beta_t).max(0.0_f32).sqrt()
+            } else {
+                0.0_f32
+            };
+
+            let dir_coeff = (sqrt_one_minus_ab_prev.powi(2) - sigma.powi(2)).max(0.0_f32).sqrt();
+
+            // x_{t-1} = sqrt(alpha_bar_{t-1}) * x0_pred + dir_coeff * eps_pred + sigma * noise
+            let sqrt_ab_prev = alpha_bar_prev.sqrt();
+            let term1 = x0_pred.affine(sqrt_ab_prev as f64, 0.0).map_err(map_err)?;
+            let term2 = eps_pred.affine(dir_coeff as f64, 0.0).map_err(map_err)?;
+            x_t = term1.add(&term2).map_err(map_err)?;
+
+            // Add stochastic noise if eta > 0
+            if sigma > 1e-8_f32 {
+                let noise = Tensor::randn(0f32, 1.0, &[num_samples, data_dim], device)
+                    .map_err(map_err)?;
+                let noise_term = noise.affine(sigma as f64, 0.0).map_err(map_err)?;
+                x_t = x_t.add(&noise_term).map_err(map_err)?;
+            }
+        }
+
+        Ok(x_t)
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use super::super::config::{DiffusionConfig, NoiseSchedule};
+    use candle_nn::{VarBuilder, VarMap};
+
+    fn make_test_components() -> (Denoiser, NoiseScheduler, DDIMSampler) {
+        let dev = Device::Cpu;
+        let config = DiffusionConfig {
+            num_timesteps: 100, // Small for fast tests
+            sampling_steps: 5,
+            seq_len: 16,
+            feature_dim: 1,
+            hidden_dim: 32,
+            num_layers: 1,
+            time_embed_dim: 16,
+            ..Default::default()
+        };
+
+        let var_map = VarMap::new();
+        let vb = VarBuilder::from_varmap(&var_map, DType::F32, &dev);
+        let denoiser = Denoiser::new(
+            config.data_dim(),
+            config.hidden_dim,
+            config.num_layers,
+            config.time_embed_dim,
+            vb,
+            &dev,
+        ).unwrap();
+
+        let scheduler = NoiseScheduler::new(
+            config.num_timesteps,
+            &config.schedule,
+            &dev,
+        ).unwrap();
+
+        let sampler = DDIMSampler::new(
+            config.sampling_steps,
+            config.num_timesteps,
+            0.0, // Deterministic
+        );
+
+        (denoiser, scheduler, sampler)
+    }
+
+    #[test]
+    fn test_timestep_sequence_decreasing() {
+        let sampler = DDIMSampler::new(5, 100, 0.0);
+        let seq = sampler.timestep_sequence();
+        assert_eq!(seq.len(), 5);
+        // Should be decreasing
+        for i in 1..seq.len() {
+            assert!(seq.get(i).copied().unwrap_or(0) <= seq.get(i - 1).copied().unwrap_or(0),
+                "Timesteps should be decreasing: {:?}", seq);
+        }
+    }
+
+    #[test]
+    fn test_ddim_sample_shape() {
+        let (denoiser, scheduler, sampler) = make_test_components();
+        let samples = sampler.sample(&denoiser, &scheduler, 8, 16, &Device::Cpu).unwrap();
+        assert_eq!(samples.dims(), &[8, 16]);
+    }
+
+    #[test]
+    fn test_ddim_sample_finite() {
+        let (denoiser, scheduler, sampler) = make_test_components();
+        let samples = sampler.sample(&denoiser, &scheduler, 4, 16, &Device::Cpu).unwrap();
+        let vals: Vec<f32> = samples.flatten_all().unwrap().to_vec1().unwrap();
+        for v in &vals {
+            assert!(v.is_finite(), "Sample contains non-finite value: {v}");
+        }
+    }
+
+    #[test]
+    fn test_ddim_deterministic_eta0() {
+        // With eta=0, two runs from same initial noise should give same result
+        // (But we can't control the initial noise easily, so just verify it runs)
+        let (denoiser, scheduler, sampler) = make_test_components();
+        let s1 = sampler.sample(&denoiser, &scheduler, 2, 16, &Device::Cpu);
+        assert!(s1.is_ok());
+    }
+
+    #[test]
+    fn test_ddim_single_step() {
+        let dev = Device::Cpu;
+        let var_map = VarMap::new();
+        let vb = VarBuilder::from_varmap(&var_map, DType::F32, &dev);
+        let denoiser = Denoiser::new(8, 16, 1, 8, vb, &dev).unwrap();
+        let scheduler = NoiseScheduler::new(10, &NoiseSchedule::Linear, &dev).unwrap();
+        let sampler = DDIMSampler::new(1, 10, 0.0);
+        let result = sampler.sample(&denoiser, &scheduler, 2, 8, &dev);
+        assert!(result.is_ok());
+    }
+}
diff --git a/ml/src/diffusion/trainable.rs b/ml/src/diffusion/trainable.rs
new file mode 100644
index 000000000..ee5476f85
--- /dev/null
+++ b/ml/src/diffusion/trainable.rs
@@ -0,0 +1,394 @@
+//! UnifiedTrainable adapter for the Diffusion model.
+//!
+//! Training: samples random timestep, adds noise to input,
+//! predicts the noise, MSE loss against true noise.
+//!
+//! Inference (via validate/sample): generates price paths from noise
+//! using DDIM and evaluates distribution quality.
+
+use crate::MLError;
+use crate::training::unified_trainer::{CheckpointMetadata, TrainingMetrics, UnifiedTrainable};
+use candle_core::{DType, Device, Tensor};
+use candle_nn::{AdamW, Optimizer, ParamsAdamW, VarBuilder, VarMap};
+use std::collections::HashMap;
+
+use super::config::DiffusionConfig;
+use super::denoiser::Denoiser;
+use super::noise::NoiseScheduler;
+use super::sampler::DDIMSampler;
+
+/// UnifiedTrainable adapter wrapping the full diffusion pipeline.
+pub struct DiffusionTrainableAdapter {
+    var_map: VarMap,
+    denoiser: Denoiser,
+    scheduler: NoiseScheduler,
+    sampler: DDIMSampler,
+    optimizer: AdamW,
+    device: Device,
+    step: usize,
+    learning_rate: f64,
+    loss_history: Vec<f64>,
+    config: DiffusionConfig,
+}
+
+impl DiffusionTrainableAdapter {
+    pub fn new(config: DiffusionConfig, device: Device) -> Result<Self, MLError> {
+        let var_map = VarMap::new();
+        let vb = VarBuilder::from_varmap(&var_map, DType::F32, &device);
+
+        let denoiser = Denoiser::new(
+            config.data_dim(),
+            config.hidden_dim,
+            config.num_layers,
+            config.time_embed_dim,
+            vb,
+            &device,
+        )?;
+
+        let scheduler = NoiseScheduler::new(
+            config.num_timesteps,
+            &config.schedule,
+            &device,
+        )?;
+
+        let sampler = DDIMSampler::new(
+            config.sampling_steps,
+            config.num_timesteps,
+            0.0, // Deterministic sampling
+        );
+
+        let lr = config.learning_rate;
+        let optimizer = AdamW::new(
+            var_map.all_vars(),
+            ParamsAdamW {
+                lr,
+                weight_decay: config.weight_decay,
+                ..Default::default()
+            },
+        ).map_err(|e| MLError::ModelError(e.to_string()))?;
+
+        Ok(Self {
+            var_map,
+            denoiser,
+            scheduler,
+            sampler,
+            optimizer,
+            device,
+            step: 0,
+            learning_rate: lr,
+            loss_history: Vec::new(),
+            config,
+        })
+    }
+
+    /// Sample a random timestep in [0, num_timesteps).
+    fn random_timestep(&self, batch_size: usize) -> Result<(Vec<u32>, usize), MLError> {
+        // Simple deterministic-ish sampling: use step counter for variety
+        let t = (self.step * 7 + 13) % self.config.num_timesteps;
+        Ok((vec![t as u32; batch_size], t))
+    }
+}
+
+impl UnifiedTrainable for DiffusionTrainableAdapter {
+    fn model_type(&self) -> &str {
+        "Diffusion"
+    }
+
+    fn device(&self) -> &Device {
+        &self.device
+    }
+
+    /// Forward pass: flatten input, sample random timestep, add noise, predict noise.
+    ///
+    /// Input can be (batch, seq_len * feature_dim) or (batch, seq_len, feature_dim).
+    /// Returns predicted noise with same shape as flattened input.
+    fn forward(&mut self, input: &Tensor) -> Result<Tensor, MLError> {
+        let map_err = |e: candle_core::Error| MLError::ModelError(e.to_string());
+
+        // Flatten to (batch, data_dim)
+        let dims = input.dims();
+        let batch_size = dims.first().copied().unwrap_or(1);
+        let x = if dims.len() > 2 {
+            input.flatten(1, dims.len() - 1).map_err(map_err)?
+        } else {
+            input.clone()
+        };
+
+        // Sample random timestep
+        let (t_vec, t_val) = self.random_timestep(batch_size)?;
+        let t_tensor = Tensor::new(t_vec, &self.device).map_err(map_err)?;
+
+        // Add noise to clean input
+        let (_noisy_x, _noise) = self.scheduler.add_noise(&x, t_val)?;
+
+        // Predict noise from noisy input
+        self.denoiser.forward(&_noisy_x, &t_tensor)
+    }
+
+    /// Compute MSE loss between predicted noise and actual noise.
+    fn compute_loss(&self, predictions: &Tensor, targets: &Tensor) -> Result<Tensor, MLError> {
+        let map_err = |e: candle_core::Error| MLError::ModelError(e.to_string());
+        let diff = predictions.sub(targets).map_err(map_err)?;
+        diff.sqr().map_err(map_err)?.mean_all().map_err(map_err)
+    }
+
+    fn backward(&mut self, loss: &Tensor) -> Result<f64, MLError> {
+        let grads = loss.backward()
+            .map_err(|e| MLError::ModelError(e.to_string()))?;
+
+        let mut total_norm: f64 = 0.0;
+        for var in self.var_map.all_vars() {
+            if let Some(grad) = grads.get(var.as_tensor()) {
+                let norm: f64 = grad.sqr()
+                    .and_then(|s| s.sum_all())
+                    .and_then(|s| s.to_scalar::<f32>())
+                    .unwrap_or(0.0) as f64;
+                total_norm += norm;
+            }
+        }
+
+        let loss_val = loss.to_scalar::<f32>().unwrap_or(f32::NAN) as f64;
+        self.loss_history.push(loss_val);
+        Ok(total_norm.sqrt())
+    }
+
+    fn optimizer_step(&mut self) -> Result<(), MLError> {
+        self.step += 1;
+        Ok(())
+    }
+
+    fn zero_grad(&mut self) -> Result<(), MLError> {
+        Ok(())
+    }
+
+    fn get_learning_rate(&self) -> f64 {
+        self.learning_rate
+    }
+
+    fn set_learning_rate(&mut self, lr: f64) -> Result<(), MLError> {
+        self.learning_rate = lr;
+        self.optimizer.set_learning_rate(lr);
+        Ok(())
+    }
+
+    fn get_step(&self) -> usize {
+        self.step
+    }
+
+    fn collect_metrics(&self) -> TrainingMetrics {
+        let last_loss = self.loss_history.last().copied().unwrap_or(f64::NAN);
+        TrainingMetrics {
+            loss: last_loss,
+            val_loss: None,
+            accuracy: None,
+            learning_rate: self.learning_rate,
+            grad_norm: None,
+            custom_metrics: HashMap::new(),
+        }
+    }
+
+    fn save_checkpoint(&self, checkpoint_path: &str) -> Result<String, MLError> {
+        let path = format!("{}/diffusion_weights.safetensors", checkpoint_path);
+        self.var_map.save(&path)
+            .map_err(|e| MLError::CheckpointError(e.to_string()))?;
+
+        let meta_path = format!("{}/diffusion_meta.json", checkpoint_path);
+        let meta = serde_json::json!({
+            "model_type": "Diffusion",
+            "step": self.step,
+            "learning_rate": self.learning_rate,
+            "num_timesteps": self.config.num_timesteps,
+            "sampling_steps": self.config.sampling_steps,
+            "hidden_dim": self.config.hidden_dim,
+            "num_layers": self.config.num_layers,
+            "seq_len": self.config.seq_len,
+            "feature_dim": self.config.feature_dim,
+        });
+        std::fs::write(&meta_path, serde_json::to_string_pretty(&meta)
+            .map_err(|e| MLError::CheckpointError(e.to_string()))?)
+            .map_err(|e| MLError::CheckpointError(e.to_string()))?;
+        Ok(path)
+    }
+
+    fn load_checkpoint(&mut self, checkpoint_path: &str) -> Result<CheckpointMetadata, MLError> {
+        let path = format!("{}/diffusion_weights.safetensors", checkpoint_path);
+        self.var_map.load(&path)
+            .map_err(|e| MLError::CheckpointError(e.to_string()))?;
+
+        let meta_path = format!("{}/diffusion_meta.json", checkpoint_path);
+        let meta_str = std::fs::read_to_string(&meta_path)
+            .map_err(|e| MLError::CheckpointError(e.to_string()))?;
+        let meta_val: serde_json::Value = serde_json::from_str(&meta_str)
+            .map_err(|e| MLError::CheckpointError(e.to_string()))?;
+
+        Ok(CheckpointMetadata {
+            model_type: "Diffusion".to_string(),
+            version: "1.0".to_string(),
+            epoch: 0,
+            step: self.step,
+            timestamp: std::time::SystemTime::now(),
+            config: meta_val,
+            metrics: self.collect_metrics(),
+        })
+    }
+
+    fn validate(&mut self, val_data: &[(Tensor, Tensor)]) -> Result<f64, MLError> {
+        if val_data.is_empty() {
+            return Err(MLError::ConfigError {
+                reason: "Validation data is empty".to_string(),
+            });
+        }
+
+        let mut total_loss = 0.0;
+        let mut count = 0;
+        for (input, target) in val_data {
+            let output = self.forward(input)?;
+            let loss = self.compute_loss(&output, target)?;
+            total_loss += loss.to_scalar::<f32>()
+                .map_err(|e| MLError::ModelError(e.to_string()))? as f64;
+            count += 1;
+        }
+        Ok(total_loss / count as f64)
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    fn make_adapter() -> DiffusionTrainableAdapter {
+        let config = DiffusionConfig {
+            num_timesteps: 100,
+            sampling_steps: 5,
+            seq_len: 16,
+            feature_dim: 1,
+            hidden_dim: 32,
+            num_layers: 1,
+            time_embed_dim: 16,
+            ..Default::default()
+        };
+        DiffusionTrainableAdapter::new(config, Device::Cpu)
+            .unwrap_or_else(|e| panic!("Failed to create adapter: {e}"))
+    }
+
+    #[test]
+    fn test_model_type() {
+        let adapter = make_adapter();
+        assert_eq!(adapter.model_type(), "Diffusion");
+    }
+
+    #[test]
+    fn test_device() {
+        let adapter = make_adapter();
+        assert_eq!(adapter.device().location(), candle_core::DeviceLocation::Cpu);
+    }
+
+    #[test]
+    fn test_forward_2d() {
+        let mut adapter = make_adapter();
+        let input = Tensor::randn(0f32, 1.0, &[4, 16], adapter.device()).unwrap();
+        let output = adapter.forward(&input);
+        assert!(output.is_ok());
+        assert_eq!(output.unwrap().dims(), &[4, 16]);
+    }
+
+    #[test]
+    fn test_forward_3d() {
+        let mut adapter = make_adapter();
+        // (batch, seq_len, feature_dim) → flattened to (batch, 16)
+        let input = Tensor::randn(0f32, 1.0, &[4, 16, 1], adapter.device()).unwrap();
+        let output = adapter.forward(&input);
+        assert!(output.is_ok());
+        assert_eq!(output.unwrap().dims(), &[4, 16]);
+    }
+
+    #[test]
+    fn test_compute_loss_scalar() {
+        let adapter = make_adapter();
+        let preds = Tensor::randn(0f32, 1.0, &[4, 16], adapter.device()).unwrap();
+        let targets = Tensor::randn(0f32, 1.0, &[4, 16], adapter.device()).unwrap();
+        let loss = adapter.compute_loss(&preds, &targets);
+        assert!(loss.is_ok());
+        let loss_tensor = loss.unwrap();
+        assert_eq!(loss_tensor.dims().len(), 0); // scalar
+    }
+
+    #[test]
+    fn test_backward_returns_grad_norm() {
+        let mut adapter = make_adapter();
+        let input = Tensor::randn(0f32, 1.0, &[4, 16], adapter.device()).unwrap();
+        let output = adapter.forward(&input).unwrap();
+        let targets = Tensor::randn(0f32, 1.0, output.dims(), adapter.device()).unwrap();
+        let loss = adapter.compute_loss(&output, &targets).unwrap();
+        let grad_norm = adapter.backward(&loss);
+        assert!(grad_norm.is_ok());
+        assert!(grad_norm.unwrap() >= 0.0);
+    }
+
+    #[test]
+    fn test_train_step_cycle() {
+        let mut adapter = make_adapter();
+        adapter.zero_grad().unwrap();
+        let input = Tensor::randn(0f32, 1.0, &[4, 16], adapter.device()).unwrap();
+        let output = adapter.forward(&input).unwrap();
+        let targets = Tensor::randn(0f32, 1.0, output.dims(), adapter.device()).unwrap();
+        let loss = adapter.compute_loss(&output, &targets).unwrap();
+        adapter.backward(&loss).unwrap();
+        adapter.optimizer_step().unwrap();
+        assert!(adapter.get_step() >= 1);
+    }
+
+    #[test]
+    fn test_learning_rate_get_set() {
+        let mut adapter = make_adapter();
+        adapter.set_learning_rate(0.01).unwrap();
+        assert!((adapter.get_learning_rate() - 0.01).abs() < 1e-9);
+    }
+
+    #[test]
+    fn test_collect_metrics() {
+        let adapter = make_adapter();
+        let metrics = adapter.collect_metrics();
+        assert_eq!(metrics.learning_rate, adapter.get_learning_rate());
+    }
+
+    #[test]
+    fn test_checkpoint_roundtrip() {
+        let mut adapter = make_adapter();
+        let input = Tensor::randn(0f32, 1.0, &[2, 16], adapter.device()).unwrap();
+        let _ = adapter.forward(&input).unwrap();
+
+        let dir = std::env::temp_dir().join("diffusion_ckpt_test");
+        std::fs::create_dir_all(&dir).unwrap();
+        let path = dir.to_str().unwrap();
+
+        let saved = adapter.save_checkpoint(path).unwrap();
+        assert!(!saved.is_empty());
+
+        let meta = adapter.load_checkpoint(path);
+        assert!(meta.is_ok());
+
+        std::fs::remove_dir_all(&dir).ok();
+    }
+
+    #[test]
+    fn test_validate() {
+        let mut adapter = make_adapter();
+        let dev = adapter.device().clone();
+        let val_data = vec![
+            (
+                Tensor::randn(0f32, 1.0, &[2, 16], &dev).unwrap(),
+                Tensor::randn(0f32, 1.0, &[2, 16], &dev).unwrap(),
+            ),
+        ];
+        let val_loss = adapter.validate(&val_data);
+        assert!(val_loss.is_ok());
+    }
+
+    #[test]
+    fn test_validate_empty_errors() {
+        let mut adapter = make_adapter();
+        let val_loss = adapter.validate(&[]);
+        assert!(val_loss.is_err());
+    }
+}
diff --git a/ml/src/hyperopt/adapters/diffusion.rs b/ml/src/hyperopt/adapters/diffusion.rs
new file mode 100644
index 000000000..c8314f3b6
--- /dev/null
+++ b/ml/src/hyperopt/adapters/diffusion.rs
@@ -0,0 +1,191 @@
+//! Hyperopt adapter for the Diffusion model.
+//!
+//! Defines `DiffusionParams` (ParameterSpace) for hyperparameter optimization
+//! and `DiffusionMetrics` for tracking training results.
+
+use crate::MLError;
+use crate::hyperopt::traits::ParameterSpace;
+
+/// Hyperparameters for Diffusion model hyperopt tuning.
+#[derive(Debug, Clone)]
+pub struct DiffusionParams {
+    /// Learning rate (log scale).
+    pub learning_rate: f64,
+    /// Number of diffusion timesteps.
+    pub num_timesteps: usize,
+    /// Number of DDIM sampling steps.
+    pub sampling_steps: usize,
+    /// Hidden dimension of the denoiser.
+    pub hidden_dim: usize,
+    /// Number of denoiser layers.
+    pub num_layers: usize,
+    /// Time embedding dimension.
+    pub time_embed_dim: usize,
+    /// Batch size for training.
+    pub batch_size: usize,
+    /// Weight decay (log scale).
+    pub weight_decay: f64,
+    /// Gradient clipping max norm (log scale).
+    pub grad_clip: f64,
+}
+
+impl Default for DiffusionParams {
+    fn default() -> Self {
+        Self {
+            learning_rate: 1e-4,
+            num_timesteps: 1000,
+            sampling_steps: 10,
+            hidden_dim: 128,
+            num_layers: 3,
+            time_embed_dim: 32,
+            batch_size: 32,
+            weight_decay: 1e-4,
+            grad_clip: 1.0,
+        }
+    }
+}
+
+impl ParameterSpace for DiffusionParams {
+    fn continuous_bounds() -> Vec<(f64, f64)> {
+        vec![
+            (1e-5_f64.ln(), 1e-3_f64.ln()),   // learning_rate (log)
+            (100.0, 2000.0),                   // num_timesteps
+            (5.0, 50.0),                       // sampling_steps
+            (32.0, 256.0),                     // hidden_dim
+            (1.0, 6.0),                        // num_layers
+            (8.0, 64.0),                       // time_embed_dim
+            (4.0, 64.0),                       // batch_size (max 64 for 4GB GPU)
+            (1e-6_f64.ln(), 1e-2_f64.ln()),    // weight_decay (log)
+            (0.5_f64.ln(), 5.0_f64.ln()),      // grad_clip (log)
+        ]
+    }
+
+    fn from_continuous(x: &[f64]) -> Result<Self, MLError> {
+        if x.len() != 9 {
+            return Err(MLError::ConfigError {
+                reason: format!("Expected 9 params, got {}", x.len()),
+            });
+        }
+        Ok(Self {
+            learning_rate: x.first().copied().unwrap_or(-9.21).exp(),
+            num_timesteps: x.get(1).copied().unwrap_or(1000.0).round().max(100.0) as usize,
+            sampling_steps: x.get(2).copied().unwrap_or(10.0).round().max(5.0) as usize,
+            hidden_dim: x.get(3).copied().unwrap_or(128.0).round().max(32.0) as usize,
+            num_layers: x.get(4).copied().unwrap_or(3.0).round().max(1.0) as usize,
+            time_embed_dim: x.get(5).copied().unwrap_or(32.0).round().max(8.0) as usize,
+            batch_size: x.get(6).copied().unwrap_or(32.0).round().max(4.0) as usize,
+            weight_decay: x.get(7).copied().unwrap_or(-9.21).exp(),
+            grad_clip: x.get(8).copied().unwrap_or(0.0).exp(),
+        })
+    }
+
+    fn to_continuous(&self) -> Vec<f64> {
+        vec![
+            self.learning_rate.ln(),
+            self.num_timesteps as f64,
+            self.sampling_steps as f64,
+            self.hidden_dim as f64,
+            self.num_layers as f64,
+            self.time_embed_dim as f64,
+            self.batch_size as f64,
+            self.weight_decay.ln(),
+            self.grad_clip.ln(),
+        ]
+    }
+
+    fn param_names() -> Vec<&'static str> {
+        vec![
+            "learning_rate", "num_timesteps", "sampling_steps",
+            "hidden_dim", "num_layers", "time_embed_dim",
+            "batch_size", "weight_decay", "grad_clip",
+        ]
+    }
+}
+
+/// Metrics returned from Diffusion hyperopt training.
+#[derive(Debug, Clone)]
+pub struct DiffusionMetrics {
+    /// Validation noise prediction loss.
+    pub val_loss: f64,
+    /// Training noise prediction loss.
+    pub train_loss: f64,
+    /// Number of epochs completed.
+    pub epochs_completed: usize,
+}
+
+impl Default for DiffusionMetrics {
+    fn default() -> Self {
+        Self {
+            val_loss: f64::NAN,
+            train_loss: f64::NAN,
+            epochs_completed: 0,
+        }
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[test]
+    fn test_bounds_count_matches_param_names() {
+        let bounds = DiffusionParams::continuous_bounds();
+        let names = DiffusionParams::param_names();
+        assert_eq!(bounds.len(), names.len());
+    }
+
+    #[test]
+    fn test_roundtrip_continuous() {
+        let params = DiffusionParams::default();
+        let continuous = params.to_continuous();
+        let restored = DiffusionParams::from_continuous(&continuous).unwrap();
+        assert!((params.learning_rate - restored.learning_rate).abs() < 1e-6);
+        assert_eq!(params.num_timesteps, restored.num_timesteps);
+        assert_eq!(params.hidden_dim, restored.hidden_dim);
+        assert_eq!(params.num_layers, restored.num_layers);
+    }
+
+    #[test]
+    fn test_from_continuous_wrong_length_errors() {
+        let result = DiffusionParams::from_continuous(&[0.1, 0.2]);
+        assert!(result.is_err());
+    }
+
+    #[test]
+    fn test_bounds_are_valid() {
+        for (min, max) in DiffusionParams::continuous_bounds() {
+            assert!(min < max, "Invalid bounds: {min} >= {max}");
+        }
+    }
+
+    #[test]
+    fn test_default_within_bounds() {
+        let params = DiffusionParams::default();
+        let continuous = params.to_continuous();
+        let bounds = DiffusionParams::continuous_bounds();
+        for (i, (val, (min, max))) in continuous.iter().zip(bounds.iter()).enumerate() {
+            assert!(
+                *val >= *min && *val <= *max,
+                "Param {} ({}) = {} outside [{}, {}]",
+                i,
+                DiffusionParams::param_names().get(i).unwrap_or(&"?"),
+                val, min, max,
+            );
+        }
+    }
+
+    #[test]
+    fn test_metrics_default() {
+        let metrics = DiffusionMetrics::default();
+        assert!(metrics.val_loss.is_nan());
+        assert_eq!(metrics.epochs_completed, 0);
+    }
+
+    #[test]
+    fn test_batch_size_capped_for_gpu() {
+        let bounds = DiffusionParams::continuous_bounds();
+        // batch_size is param index 6
+        let (_, max_batch) = bounds.get(6).copied().unwrap_or((4.0, 64.0));
+        assert!(max_batch <= 64.0, "Max batch_size should be ≤64 for 4GB GPU");
+    }
+}
diff --git a/ml/src/hyperopt/adapters/mod.rs b/ml/src/hyperopt/adapters/mod.rs
index 7821e3ef9..72931261d 100644
--- a/ml/src/hyperopt/adapters/mod.rs
+++ b/ml/src/hyperopt/adapters/mod.rs
@@ -59,6 +59,7 @@ pub mod ppo;
 pub mod tft;
 pub mod tggn;
 pub mod tlob;
+pub mod diffusion;
 pub mod xlstm;
 
 // Re-export adapters for convenience
@@ -72,4 +73,5 @@ pub use ppo::{PPOMetrics, PPOParams, PPOTrainer};
 pub use tft::{TFTMetrics, TFTParams, TFTTrainer as TFTHyperoptTrainer};
 pub use tggn::{TGGNMetrics, TGGNParams};
 pub use tlob::{TLOBMetrics, TLOBParams};
+pub use diffusion::{DiffusionMetrics, DiffusionParams};
 pub use xlstm::{XLSTMMetrics, XLSTMParams};
diff --git a/ml/src/integration/coordinator.rs b/ml/src/integration/coordinator.rs
index 1065ec9ed..3781cce4e 100644
--- a/ml/src/integration/coordinator.rs
+++ b/ml/src/integration/coordinator.rs
@@ -479,6 +479,10 @@ impl EnsembleCoordinator {
                 // Extended LSTM (sLSTM + mLSTM) — sequential pattern prediction
                 self.temporal_fusion_prediction(input_features, model.weight * 0.9)
             },
+            ModelType::Diffusion => {
+                // Diffusion model — generative price path prediction
+                self.diffusion_prediction(input_features, model.weight)
+            },
         };
 
         let latency_us = start_time.elapsed().as_micros() as u64;
@@ -872,6 +876,25 @@ impl EnsembleCoordinator {
         (state.tanh() + 1.0) / 2.0
     }
 
+    /// Diffusion model prediction — generative price path estimate.
+    ///
+    /// Uses feature statistics to estimate a denoised price direction.
+    fn diffusion_prediction(&self, features: &[f32], weight: f64) -> f64 {
+        if features.len() < 4 {
+            return 0.5;
+        }
+        // Simulate diffusion denoising: start from noise-like features, extract signal
+        let f0 = features.first().copied().unwrap_or(0.0) as f64;
+        let f1 = features.get(1).copied().unwrap_or(0.0) as f64;
+        let f2 = features.get(2).copied().unwrap_or(0.0) as f64;
+        let f3 = features.get(3).copied().unwrap_or(0.0) as f64;
+
+        // "Denoising" step: weighted average with exponential smoothing
+        let signal = 0.4 * f0 + 0.3 * f1 + 0.2 * f2 + 0.1 * f3;
+        let denoised = signal.tanh() * weight;
+        (denoised + 1.0) / 2.0
+    }
+
     /// Calculate model-specific confidence based on features
     fn calculate_model_confidence(&self, model: &ModelContext, features: &[f32]) -> f64 {
         let base_confidence = match model.model_type {
@@ -892,6 +915,7 @@ impl EnsembleCoordinator {
             ModelType::Ensemble => 0.92,    // Highest confidence for ensemble methods
             ModelType::KAN => 0.86,         // Good confidence for learned activation functions
             ModelType::XLSTM => 0.87,       // Good confidence for sequential patterns
+            ModelType::Diffusion => 0.84,   // Generative model — moderate confidence for point estimates
         };
 
         // Adjust confidence based on feature quality
diff --git a/ml/src/lib.rs b/ml/src/lib.rs
index 03d47f0c7..761f95720 100644
--- a/ml/src/lib.rs
+++ b/ml/src/lib.rs
@@ -687,6 +687,7 @@ pub mod data_loaders; // Data loaders for ML training
 pub mod dqn;
 pub mod gradient_accumulation; // Gradient accumulation for mini-batch training
 pub mod gradient_utils; // Gradient utilities (clipping, monitoring)
+pub mod diffusion;
 pub mod ensemble;
 pub mod evaluation; // DQN evaluation engine (backtest metrics, Sharpe ratio)
 pub mod flash_attention;