Diffusion generative models (DMs) have achieved promising results in image and graph generation. However, real-world graphs, such as social networks, molecular graphs, and traffic graphs, generally share non-Euclidean topologies and hidden hierarchies. For example, the degree distributions of graphs are mostly power-law distributions. The current latent diffusion model embeds the hierarchical data in a Euclidean space, which leads to distortions and interferes with modeling the distribution. Instead, hyperbolic space has been found to be more suitable for capturing complex hierarchical structures due to its exponential growth property. In order to simultaneously utilize the data generation capabilities of diffusion models and the ability of hyperbolic embeddings to extract latent hierarchical distributions, we propose a novel graph generation method called, Hyperbolic Graph Diffusion Model (HGDM), which consists of an auto-encoder to encode nodes into successive hyperbolic embeddings, and a DM that operates in the hyperbolic latent space. HGDM captures the crucial graph structure distributions by constructing a hyperbolic potential node space that incorporates edge information. Extensive experiments show that HGDM achieves better performance in generic graph and molecule generation benchmarks, with a 48% improvement in the quality of graph generation with highly hierarchical structures.