We propose a neutron diffractometer system based on MgB₂ thin film detectors and an SFQ signal processor. Small dimensions of MgB₂ thin film detectors and high processing capability of the single flux quantum (SFQ) circuits enable us to handle several thousand or more detectors in a cryocooler, leading to a very compact system. In addition, the system can provide many diffraction patterns for different kinetic energies simultaneously. Kinetic energy is determined for individual neutrons by means of the time-of-flight method by using SFQ time-to-digital converters (TDCs). Digital outputs of the TDCs are multiplexed in time domain and sent to room-temperature electronics with reduced number of cables. A dual-input SFQ signal processor including TDCs and a multiplexer has been successfully demonstrated with a time resolution of 20ns and power consumption of 400μW. These values show high feasibility of the neutron diffraction system proposed here.