The paper discusses phonological and semantic changes of diminutives in Datian Houlu Hua in the framework of grammaticalization cycle. It shows that diminutive rime change is triggered by -n suffixation, which may result in vowel change and vowel convergence, and diminutive tones are produced through syllable contraction. Semantically, rime-changed diminutives have genetic reference, and the other newly introduced diminutive suffix ”kĩ53” is also grammaticalized to certain extent. Diminutives in Datian Houlu Hua share cross-dialectal characteristics with those in eastern Hubei, Jin and Wu dialects, and they also demonstrate that diminutives have parallel stages in segmental and suprasegmental development.