Abstract: Diffusive properties of interacting magnetic dipoles confined in a parabolic narrow channel and in the presence of a periodic modulated (corrugated) potential along the unconfined direction are studied using Brownian dynamics simulations. We compare our simulation results with the analytical result for the effective diffusion coefficient of a single particle by Festa and d'Agliano [Physica A 90, 229 (1978)] and show the importance of interparticle interaction on the diffusion process. We present results for the diffusion of magnetic dipoles as a function of linear density, strength of the periodic modulation and commensurability factor.