The diaper with integrated disposal system comprises a disposable diaper and a disposal bag. The disposable diaper may be adapted to be worn by a baby to retain waste, and mask odor. As a non-limiting example, the waste may be urine and/or feces. The disposal bag may be coupled to the outside of the back of the disposable diaper, as worn, such that the disposal bag is kept clean and available at all times. The disposable diaper containing the waste may be referred to as a soiled diaper. The soiled diaper may be removed from the baby and rolled to contain the waste. The disposal bag may be pulled around the soiled diaper to seal the soiled diaper within the disposal bag.