Text-to-image diffusion models often exhibit biases toward specific demographic groups, such as generating more males than females when prompted to generate images of engineers, raising ethical concerns and limiting their adoption. In this paper, we tackle the challenge of mitigating generation bias towards any target attribute value (e.g., "male" for "gender") in diffusion models while preserving generation quality. We propose FairGen, an adaptive latent guidance mechanism which controls the generation distribution during inference. In FairGen, a latent guidance module dynamically adjusts the diffusion process to enforce specific attributes, while a memory module tracks the generation statistics and steers latent guidance to align with the targeted fair distribution of the attribute values. Further, given the limitations of existing datasets in comprehensively assessing bias in diffusion models, we introduce a holistic bias evaluation benchmark HBE, covering diverse domains and incorporating complex prompts across various applications. Extensive evaluations on HBE and Stable Bias datasets demonstrate that FairGen outperforms existing bias mitigation approaches, achieving substantial bias reduction (e.g., 68.5% gender bias reduction on Stable Diffusion 2). Ablation studies highlight FairGen's ability to flexibly and precisely control generation distribution at any user-specified granularity, ensuring adaptive and targeted bias mitigation.