We introduce a formalism of fractional diffusion on networks based on a fractional Laplacian matrix that can be constructed directly from the eigenvalues and eigenvectors of the Laplacian matrix. This fractional approach allows random walks with long-range dynamics providing a general framework for anomalous diffusion and navigation, and inducing dynamically the small-world property on any network. We obtained exact results for the stationary probability distribution, the average fractional return probability, and a global time, showing that the efficiency to navigate the network is greater if we use a fractional random walk in comparison to a normal random walk. For the case of a ring, we obtain exact analytical results showing that the fractional transition and return probabilities follow a long-range power-law decay, leading to the emergence of Levy flights on networks. Our general fractional diffusion formalism applies to regular, random, and complex networks and can be implemented from the spectral properties of the Laplacian matrix, providing an important tool to analyze anomalous diffusion on networks.