PURPOSE: To reduce image distortion in MR diffusion imaging using an accelerated multi-shot method. METHODS: The proposed method exploits the fact that diffusion-encoded data tend to be sparse when represented in the kb-kd space, where kb and kd are the Fourier transform duals of b and d, the b-factor and the diffusion direction, respectively. Aliasing artifacts are displaced toward under-used regions of the kb-kd plane, allowing nonaliased signals to be recovered. A main characteristic of the proposed approach is how thoroughly the navigator information gets used during reconstruction: The phase of navigator images is used for motion correction, while the magnitude of the navigator signal in kb-kd space is used for regularization purposes. As opposed to most acceleration methods based on compressed sensing, the proposed method reduces the number of ky lines needed for each diffusion-encoded image, but not the total number of images required. Consequently, it tends to be most effective at reducing image distortion rather than reducing total scan time. RESULTS: Results are presented for three volunteers with acceleration factors ranging from 4 to 8, with and without the inclusion of parallel imaging. CONCLUSION: An accelerated motion-corrected diffusion imaging method was introduced that achieves good image quality at relatively high acceleration factors.