Text-to-image diffusion models are capable of generating high-quality images, but these images often fail to align closely with the given text prompts. Classifier-free guidance (CFG) is a popular and effective technique for improving text-image alignment in the generative process. However, using CFG introduces significant computational overhead and deviates from the established theoretical foundations of diffusion models. In this paper, we present DIstilling CFG by enhancing text Embeddings (DICE), a novel approach that removes the reliance on CFG in the generative process while maintaining the benefits it provides. DICE distills a CFG-based text-to-image diffusion model into a CFG-free version by refining text embeddings to replicate CFG-based directions. In this way, we avoid the computational and theoretical drawbacks of CFG, enabling high-quality, well-aligned image generation at a fast sampling speed. Extensive experiments on multiple Stable Diffusion v1.5 variants, SDXL and PixArt-$\alpha$ demonstrate the effectiveness of our method. Furthermore, DICE supports negative prompts for image editing to improve image quality further. Code will be available soon.