AbstractA diagonal ind-group is a direct limit of classical affine algebraic groups of growing rank under a class of inclusions that contains the inclusionas a typical special case. If G is a diagonal ind-group and B ⊂ G is a Borel ind-subgroup, we consider the ind-variety G/B and compute the cohomology H𝓁(G/B,𝒪−λ) of any G-equivariant line bundle 𝒪−λ on G/B. It has been known that, for a generic λ, all cohomology groups of 𝒪−λ vanish, and that a non-generic equivariant line bundle 𝒪−λ has at most one nonzero cohomology group. The new result of this paper is a precise description of when Hj (G/B,𝒪−λ) is nonzero and the proof of the fact that, whenever nonzero, Hj (G/B,𝒪−λ) is a G-module dual to a highest weight module. The main difficulty is in defining an appropriate analog WB of the Weyl group, so that the action of WB on weights of G is compatible with the analog of the Demazure “action” of the Weyl group on the cohomology of line bundles. The highest weight corresponding to Hj (G/B,𝒪−λ) is then computed by a procedure similar to that in the classical Bott–Borel–Weil theorem.