Remote Sensing (RS) images are usually captured at resolutions lower than those required. Deep Learning (DL)-based super-resolution (SR) architectures are typically used to increase the resolution artificially. In this study, we designed a new architecture called TESR (Two-stage approach for Enhancement and super-resolution), leveraging the power of Vision Transformers (ViT) and the Diffusion Model (DM) to increase the resolution of RS images artificially. The first stage is the ViT-based model, which serves to increase resolution. The second stage is an iterative DM pre-trained on a larger dataset, which serves to increase image quality. Every stage is trained separately on the given task using a separate dataset. The self-attention mechanism of the ViT helps the first stage generate global and contextual details. The iterative Diffusion Model helps the second stage enhance the image’s quality and generate consistent and harmonic fine details. We found that TESR outperforms state-of-the-art architectures on super-resolution of remote sensing images on the UCMerced benchmark dataset. Considering the PSNR/SSIM metrics, TESR improves SR image quality as compared to state-of-the-art techniques from 34.03/0.9301 to 35.367/0.9449 in the scale ×2. On a scale of ×3, it improves from 29.92/0.8408 to 32.311/0.91143. On a scale of ×4, it improves from 27.77/0.7630 to 31.951/0.90456. We also found that the Charbonnier loss outperformed other loss functions in the training of both stages of TESR. The improvement was by a margin of 21.5%/14.3%, in the PSNR/SSIM, respectively. The source code of TESR is open to the community.