Diffusion MRI is a useful imaging technique with many clinical applications. Many diffusion MRI studies have utilized echo‐planar imaging (EPI) acquisition techniques. In this study, we have developed a rapid diffusion‐prepared fast imaging with steady‐state free precession MRI acquisition for a preclinical 7T scanner providing diffusion‐weighted images in less than 500 ms and diffusion tensor imaging assessments in ∼1 min with minimal image artifacts in comparison with EPI. Phantom apparent diffusion coefficient (ADC) and fractional anisotropy (FA) assessments obtained from the diffusion‐prepared fast imaging with steady‐state free precession (DP‐FISP) acquisition resulted in good agreement with EPI and spin echo diffusion methods. The mean apparent diffusion coefficient was 2.0 × 10−3 mm2/s, 1.90 × 10−3 mm2/s, and 1.97 × 10−3 mm2/s for DP‐FISP, diffusion‐weighted spin echo, and diffusion‐weighted EPI, respectively. The mean fractional anisotropy was 0.073, 0.072, and 0.070 for diffusion‐prepared fast imaging with steady‐state free precession, diffusion‐weighted spin echo, and diffusion‐weighted EPI, respectively. Initial in vivo studies show reasonable ADC values in a normal mouse brain and polycystic rat kidneys. Magn Reson Med, 2012. © 2011 Wiley Periodicals, Inc.