In this paper, we propose LSRNA, a novel framework for higher-resolution (exceeding 1K) image generation using diffusion models by leveraging super-resolution directly in the latent space.Existing diffusion models struggle with scaling beyond their training resolutions, often leading to structural distortions or content repetition.Reference-based methods address the issues by upsampling a low-resolution reference to guide higher-resolution generation. However, they face significant challenges: upsampling in latent space often causes manifold deviation, which degrades output quality. On the other hand, upsampling in RGB space tends to produce overly smoothed outputs.To overcome these limitations, LSRNA combines Latent space Super-Resolution (LSR) for manifold alignment and Region-wise Noise Addition (RNA) to enhance high-frequency details.Our extensive experiments demonstrate that LSRNA outperforms state-of-the-art reference-based methods across various resolutions and metrics, while showing the critical role of latent upsampling in preserving detail and sharpness.