Conventional methods for PAN-sharpening often struggle to restore fine details due to limitations in leveraging high-frequency information. Moreover, diffusion-based approaches lack sufficient conditioning to fully utilize Panchromatic (PAN) images and low-resolution multispectral (LRMS) inputs effectively. To address these challenges, we propose an uncertainty-aware knowledge distillation diffusion framework with details enhancement for PAN-sharpening, called U-Know-DiffPAN. The U-Know-DiffPAN incorporates uncertainty-aware knowledge distillation for effective transfer of feature details from our teacher model to a student one. The teacher model in our U-Know-DiffPAN captures frequency details through freqeuncy selective attention, facilitating accurate reverse process learning. By conditioning the encoder on compact vector representations of PAN and LRMS and the decoder on Wavelet transforms, we enable rich frequency utilization. So, the high-capacity teacher model distills frequency-rich features into a lightweight student model aided by an uncertainty map. From this, the teacher model can guide the student model to focus on difficult image regions for PAN-sharpening via the usage of the uncertainty map. Extensive experiments on diverse datasets demonstrate the robustness and superior performance of our U-Know-DiffPAN over very recent state-of-the-art PAN-sharpening methods.