Network data analytics are now at the core of almost every networking solution. Nonetheless, limited access to networking data has been an enduring challenge due to many reasons including complexity of modern networks, commercial sensitivity, privacy and regulatory constraints. In this work, we explore how to leverage recent advancements in Diffusion Models (DM) to generate synthetic network traffic data. We develop an end-to-end framework - NetDiffus that first converts one-dimensional time-series network traffic into two-dimensional images, and then synthesizes representative images for the original data. We demonstrate that NetDiffus outperforms the state-of-the-art traffic generation methods based on Generative Adversarial Networks (GANs) by providing 66.4% increase in fidelity of the generated data and 18.1% increase in downstream machine learning tasks. We evaluate NetDiffus on seven diverse traffic traces and show that utilizing synthetic data significantly improves traffic fingerprinting, anomaly detection and traffic classification.