Image segmentation is crucial in many computational pathology pipelines, including accurate disease diagnosis, subtyping, outcome, and survivability prediction. The common approach for training a segmentation model relies on a pre-trained feature extractor and a dataset of paired image and mask annotations. These are used to train a lightweight prediction model that translates features into per-pixel classes. The choice of the feature extractor is central to the performance of the final segmentation model, and recent literature has focused on finding tasks to pre-train the feature extractor. In this paper, we propose PathSegDiff, a novel approach for histopathology image segmentation that leverages Latent Diffusion Models (LDMs) as pre-trained featured extractors. Our method utilizes a pathology-specific LDM, guided by a self-supervised encoder, to extract rich semantic information from H\&E stained histopathology images. We employ a simple, fully convolutional network to process the features extracted from the LDM and generate segmentation masks. Our experiments demonstrate significant improvements over traditional methods on the BCSS and GlaS datasets, highlighting the effectiveness of domain-specific diffusion pre-training in capturing intricate tissue structures and enhancing segmentation accuracy in histopathology images.