Synthetic Aperture Radar (SAR) imagery presents significant advantages for observing ocean surface winds owing to its high spatial resolution and low sensitivity to extreme weather conditions. Nevertheless, signal noise poses a challenge, hindering precise wind retrieval from SAR imagery. Moreover, traditional geophysical model functions (GMFs) often falter, particularly in accurately estimating high wind speeds, notably during extreme weather phenomena like tropical cyclones (TCs). To address these limitations, this study proposes a novel hybrid model, CMOD-Diffusion, which integrates the strengths of GMFs with data-driven deep learning methods, thereby achieving enhanced accuracy and robustness in wind retrieval. Based on the coarse estimation of wind speed by the traditional GMF CMOD5.N, we introduce the recently developed data-driven method Denoising Diffusion Probabilistic Model (DDPM). It transforms an image from one domain to another domain by gradually adding Gaussian noise, thus achieving denoising and image synthesis. By introducing the DDPM, the noise from the observed normalized radar cross-section (NRCS) and the residual of the GMF methods can be largely compensated. Specifically, for wind speeds within the low-to-medium range, a DDPM is employed before proceeding to another CMOD iteration to recalibrate the observed NRCS. Conversely, a posterior-placed DDPM is applied after CMOD to reconstruct high-wind-speed regions or TC-affected areas, with the prior information from regions characterized by low wind speeds and recalibrated NRCS values. The efficacy of the proposed model is evaluated by using Sentinel-1 SAR imagery in vertical–vertical (VV) polarization, collocated with data from the European Centre for Medium-Range Weather Forecasts (ECMWF). Experimental results based on validation sets demonstrate significant improvements over CMOD5.N, particularly in low-to-medium wind speed regions, with the Structural Similarity Index (SSIM) increasing from 0.76 to 0.98 and the Root Mean Square Error (RMSE) decreasing from 1.98 to 0.63. Across the entire wind field, including regions with high wind speeds, the validation data obtained through the proposed method exhibit an RMSE of 2.39 m/s, with a correlation coefficient of 0.979.