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Nowadays, graph representation learning has aroused a lot of research interest, which aims to learn the latent low-dimensional representations of graph nodes, while preserving the graph structure. Based on the local smooth assumption, some existing methods have achieved significant success. However, although the structure information of data has been taken into consideration, these models fail to capture enough connectivity pattern such as high-order connections. To alleviate this issue, we propose a Graph Diffusion Network (GDN) that can dynamically preserve local and global consistency of graph. More specifically, Graph Diffusion Auto-encoder is utilized as the main framework in GDN to nonlinearly maintain global information volume. Different from simple auto-encoders, the forward propagation in our model is conducted through Graph Diffusion System which can guide the random walk of information flow to sense the high-order local relationships on graph. Furthermore, to discover a customized graph structure that reveals the similarities between nodes, the connection relationship between nodes are refined by learned metrics with the preservation of scale-free property. By the dynamically self-refining on the graph structure, it can be promoted towards learning the intrinsic node representations in a progressive way. Experimental results on node classification tasks demonstrate the effectiveness of the proposed GDN model. [ABSTRACT FROM AUTHOR]