ABSTRACT Despite the high nutritional value and extensive consumer preference for chili, productivity levels in India are significantly low. An experiment was carried out to study the variability, genetic diversity, and character association in 30 genotypes. Analysis of variance showed significant differences among genotypes for all the traits under study. A high magnitude of genotypic and phenotypic coefficient of variation, coupled with heritability and genetic advance, was observed for all the traits, except days to first flowering, days to first fruit set, and days to final harvest. Diversity analysis showed that the maximum intercluster distance was observed between clusters IX and XII. Results of correlation and path coefficient analysis indicated that number of fruits per plants, fruit length, fruit weight, green fruit yield per plant, number of seeds per fruit, days to first flowering, and days to final harvest were positively correlated with dry fruit yield. It is concluded that improvement in fruit yield in chili pepper could be achieved by selecting genotypes from clusters IX and XII as parents for hybridization, and traits as components that have positive effect on yield.