In recent years, significant progress has been made in collecting large-scale datasets to improve segmentation and autonomous driving models. These large-scale datasets are often dominated by common environmental conditions such as "Clear and Day" weather, leading to decreased performance in under-represented conditions like "Rainy and Night". To address this issue, we introduce SynDiff-AD, a novel data augmentation pipeline that leverages diffusion models (DMs) to generate realistic images for such subgroups. SynDiff-AD uses ControlNet-a DM that guides data generation conditioned on semantic maps-along with a novel prompting scheme that generates subgroup-specific, semantically dense prompts. By augmenting datasets with SynDiff-AD, we improve the performance of segmentation models like Mask2Former and SegFormer by up to 1.2% and 2.3% on the Waymo dataset, and up to 1.4% and 0.7% on the DeepDrive dataset, respectively. Additionally, we demonstrate that our SynDiff-AD pipeline enhances the driving performance of end-to-end autonomous driving models, like AIM-2D and AIM-BEV, by up to 20% across diverse environmental conditions in the CARLA autonomous driving simulator, providing a more robust model.