Generating realistic and controllable agent behaviors in traffic simulation is crucial for the development of autonomous vehicles. This problem is often formulated as imitation learning (IL) from real-world driving data by either directly predicting future trajectories or inferring cost functions with inverse optimal control. In this paper, we draw a conceptual connection between IL and diffusion-based generative modeling and introduce a novel framework Versatile Behavior Diffusion (VBD) to simulate interactive scenarios with multiple traffic participants. Our model not only generates scene-consistent multi-agent interactions but also enables scenario editing through multi-step guidance and refinement. Experimental evaluations show that VBD achieves state-of-the-art performance on the Waymo Sim Agents benchmark. In addition, we illustrate the versatility of our model by adapting it to various applications. VBD is capable of producing scenarios conditioning on priors, integrating with model-based optimization, sampling multi-modal scene-consistent scenarios by fusing marginal predictions, and generating safety-critical scenarios when combined with a game-theoretic solver.
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