In this paper, we tackle the problem of Generalized Category Discovery (GCD). Given a dataset containing both labelled and unlabelled images, the objective is to categorize all images in the unlabelled subset, irrespective of whether they are from known or unknown classes. In GCD, an inherent label bias exists between known and unknown classes due to the lack of ground-truth labels for the latter. State-of-the-art methods in GCD leverage parametric classifiers trained through self-distillation with soft labels, leaving the bias issue unattended. Besides, they treat all unlabelled samples uniformly, neglecting variations in certainty levels and resulting in suboptimal learning. Moreover, the explicit identification of semantic distribution shifts between known and unknown classes, a vital aspect for effective GCD, has been neglected. To address these challenges, we introduce DebGCD, a Debiased learning with distribution guidance framework for GCD. Initially, DebGCD co-trains an auxiliary debiased classifier in the same feature space as the GCD classifier, progressively enhancing the GCD features. Moreover, we introduce a semantic distribution detector in a separate feature space to implicitly boost the learning efficacy of GCD. Additionally, we employ a curriculum learning strategy based on semantic distribution certainty to steer the debiased learning at an optimized pace. Thorough evaluations on GCD benchmarks demonstrate the consistent state-of-the-art performance of our framework, highlighting its superiority. Project page: https://visual-ai.github.io/debgcd/