We show that quantum diffusion near a quantum critical point can provide an efficient mechanism of quantum annealing. It is based on the diffusion-mediated recombination of excitations in open systems far from thermal equilibrium. We find that, for an Ising spin chain coupled to a bosonic bath and driven by a monotonically decreasing transverse field, excitation diffusion sharply slows down below the quantum critical region. This leads to spatial correlations and effective freezing of the excitation density. Still, obtaining an approximate solution of an optimization problem via the diffusion-mediated quantum annealing can be faster than via closed-system quantum annealing or Glauber dynamics.