Diabetic Retinopathy (DR) causes quite a few blindness worldwide, which can be refrained by the timely diagnosis on retinal images. Recently, researches on deep learning-based retinal image classification have accelerated outstanding improvements in DR grading task. However, existing DR grading works are mostly limited to a supervised manner. They require accurately annotated data labeled by professional experts, and the annotating work is very laborious and time-consuming. We propose a Semisupervised Auto-encoder Graph Network (SAGN) for the challenging DR diagnosis to relax this constraint. Precisely, SAGN consists of three major modules: auto-encoder feature learning, neighbor correlation mining, and graph representation. Firstly, our model learns to extract representations from retinal images and reconstruct them as close to original inputs as possible. Then neighbor correlations among labeled and unlabeled samples are established by their similarities, calculated by the radial basis function. Finally, we operate Graph Convolutional Neural Network (GCN) to grade retinal samples from extracted features and their correlations. To evaluate the performance of SAGN, we conduct sufficient comparative experiments on APTOS 2019 dataset, trained from EyePACS. Results demonstrate that our SAGN model can achieve comparable performance with limited labeled retinal images with the help of large amounts of unlabeled data.