After leaving the Central School, Diuguid did street theatre and worked with the fringe group A Plum Line which rehearsed in the ballroom of an Eaton Square squat (next door to Lord Boothby's home). From there, it was a short step to the recently formed Gay Sweatshop and, in 1976, a three-month tour of Jill Posner's coming-out play
Any Woman Can, which provoked bomb threats. In 1979, she directed her last production with this company,
The Dear Love of Comrades by
Noël Greig, about the 19th-century socialist utopian, and early LGBT activist,
Edward Carpenter. The following year, at her instigation, the first women's festival was held at the Action Space (now the Drill Hall) which trailblazed the future of lesbian theatre, such as
Susan Griffin's
Voices staged by Diuguid. She also formed the Women's Project Company (with Kate Crutchley, 1979) and directed several other plays:
Louise Page's
Tissue (1978), the first play about breast cancer;
Noël Greig's
Angels Descend On Paris (1980), concerning the Nazi persecution of gays and Jews;
Timberlake Wertenbaker's
New Anatomies (1981); and
Patterns (1984), by her own company, Changing Women. Diuguid had a strong alliance with Clean Break, a women's theatre company formed by ex-prisoners, directing the plays
The Easter Egg (1983) by
Chris Tchaikovsky, a prison reformer, and Lin Coghlan's
Apache Tears (2000). Other major productions included
Howard Brenton's
Sore Throats (1979); Darrah Cloud's
The Stick Wife (1991), about the wives of three Ku Klux Klan members; and
Request Programme, by
Franz Xaver Kroetz (1986) with actress Eileen Nicholas, for which Diuguid won a best director award. Throughout the 1980s and 1990s, she travelled extensively in Australia, Brazil (as a guest director, at the
British Council Theatre Group, with
Luiz Päetow), Japan and Israel (where a traumatic personal experience led, 10 years later, to her shortfilm
Aftermath). Furthermore, she became a staff director to the
English National Opera and also worked as an associate director at the
Hampstead Theatre. ==Later years==