Smoothing of generation variability, i.e., reduction of variance in the aggregate generation is crucial for grid integration of large-scale wind power plants. Prior studies of smoothing have focused on geographical smoothing, based on distance. In contrast, we propose a novel concept “diurnal smoothing” that depends on spatial variations in the timing of seasonal-mean diurnal cycle peak. Considering the case of India, which experiences a strong diurnal cycle of wind-speed, we show how spatial heterogeneity in the wind diurnal cycle can be exploited to smooth wind power variability over and above geographical smoothing. For any given separation distance between sites, the hourly wind speed correlation is highly variable. Difference in timing of the diurnal cycle peak is an important factor for explaining this variability and we define smoothing from differently timed seasonal-mean diurnal cycle as “Diurnal smoothing”. We show that apart from separation distance, the diurnal cycle is crucial for correlation among sites separated by 200 km or more with strong diurnal cycles (amplitude more than approximately 0.5 m/s). Thus, diurnal smoothing is a vital factor in the aggregation of large wind power plants, and grid integration is benefited by considering (in addition to distance) new wind plant sites with largely separated diurnal cycles, especially those differing by roughly 12 hours. Such diurnal smoothing is relevant for regions across the world with strong wind speed diurnal cycles. Ultimately grid integration depends on variations in total wind and solar generation and demand. Hence, their combined effects must be studied.