Recently, Hyperspectral Image (HSI) classification has attracted increasing attention in remote sensing. However, HSI data are inherently high-dimensional but low-rank, with discriminative information concentrated on a low-dimensional latent manifold. In real-world remote sensing scenarios, the superposition of multiple degradation factors disrupts this intrinsic manifold structure, driving samples away from their original low-dimensional distribution and introducing substantial redundant and non-discriminative variations. To better handle this challenge, this paper proposes a manifold-space diffusion framework (MSDiff) for robust hyperspectral classification under complex degradation conditions. Specifically, the proposed method first maps high-dimensional, degradation-affected HSI data into a compact low-dimensional manifold through a discriminative spectral-spatial reconstruction task, preserving class semantics and reducing redundant variations. A diffusion-based generative model is then applied to regularize the spectral-spatial distribution within the manifold, enabling progressive refinement and stabilization of latent features against residual degradations. The key advantage of the proposed framework lies in performing diffusion-based distribution modeling directly on the low-dimensional manifold, effectively decoupling degradation-induced disturbances from intrinsic discriminative structures and enhancing representation stability under complex degradations. Experimental results on multiple hyperspectral benchmarks demonstrate consistent performance improvements over state-of-the-art methods under diverse composite degradation settings. The code will be available at https://github.com/yangboxiang1207/MSDiff