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Latent Diffusion Models (LDMs) enable high-quality image synthesis while avoiding excessive compute demands by training a diffusion model in a compressed lower-dimensional latent space. Here, we apply the LDM paradigm to high-resolution video generation, a particularly resource-intensive task. We first pre-train an LDM on images only; then, we turn the image generator into a video generator by introducing a temporal dimension to the latent space diffusion model and finetuning on encoded image sequences, i.e., videos. Similarly, we temporally align diffusion model upsamplers, turning them into temporally consistent video super resolution models. We focus on two relevant real-world applications: Simulation of in-the-wild driving data and creative content creation with text-to-video modeling. In particular, we validate our Video LDM on real driving videos of resolution <tex xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">$512 \times 1024$</tex> , achieving state-of-the-art performance. Furthermore, our approach can easily leverage off-the-shelf pretrained image LDMs, as we only need to train a temporal alignment model in that case. Doing so, we turn the publicly available, state-of-the-art text-to-image LDM Stable Diffusion into an efficient and expressive text-to-video model with resolution up to <tex xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">$1280 \times 2048$</tex> . We show that the temporal layers trained in this way generalize to different finetuned text-to-image LDMs. Utilizing this property, we show the first results for personalized text-to-video generation, opening exciting directions for future content creation. Project page: https://nv-tlabs.github.io/VideoLDM/