This paper presents a magnetic resonance imaging method that can provide high-resolution images characterizing water diffusion in biological tissues. These images contain information about tissue microstructure, thereby providing a useful means to monitor physiological changes. The proposed method overcomes the long-standing problem of limited signal-to-noise ratio with diffusion MRI by using penalized maximum-likelihood reconstruction. Experiments performed on a mouse brain illustrate the ability of the technique to elucidate high resolution structural detail that would not be visible using other non-invasive approaches.