The objectives of the study were to determine genetic variability, interrelationships among different traits, and to estimate genetic divergence among the nineteen common bean varieties. Nineteen common bean varieties were tested for yield and yield related traits in completely randomized block design in three replications at Uke Research and Technology Demonstration Site, in 2018 cropping season. The analysis of variance showed that the varieties were significantly different for all traits except for days to 50% flowering and number of seed per pod. Among all tested varieties Anger gave the maximum yield (4.03 t/ha) followed by Awash 1 (3.93 t/ha) and Awash-2 (3.49 t/ha). Genotypic and phenotypic coefficient of variation values greater than 30% were obtained for plant height, leaf area, pod length, and seed yield indicating high variations among the tested genotypes. Heritability values greater than 60% were obtained for plant height, leaf area, inter node length, pod length, number node per plant, number of pod per plant, 100-seed weight, seed yield, biological yield and harvest index; Genetic advance as a percent of mean values were greater than 30% for plant height, leaf area, inter node length, pod length, number of node per plant, number of pod per plant, seed yield, biological yield and harvest index indicating, the traits are governed by additive genes. Genotypic and phenotypic correlation coefficient showed that seed yield was significantly and positively correlated with biological yield and harvest index both at genotypic and phenotypic levels, indicating they are true indicator for higher seed yield. Whereas the correlation between seed yields and other traits not strong in magnitudes. The principal component analysis indicated that the first four principal components explained 84.78% of the total variation in the varieties, suggesting the characters considered were sufficient to explain the total variations. The genetic divergence (D<sup>2</sup>) analysis indicated that the 19 varieties were grouped in to four clusters and distances between these clusters were significantly different between all the cluster combinations. This indicates that there is an opportunity to bring about improvement through hybridization of varieties from different clusters and subsequent selection from the segregating generations. Generally, the tested varieties had ample genetic variations and yield potential to use in the future breeding program in western Ethiopia.