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A study of genetic diversity in 25 chilli genotypes for various characters revealed substantial differences for all the traits.Based on D2 values, the genotypes were clustered into eight constellations. Cluster I contained nine genotypes fallowed bycluster-II (four) cluster IV and V (two each). The maximum inter cluster distance (D=12.75) was observed between cluster VIand cluster VIII. The cluster IV recorded maximum intracluster distance (D=5.91).Intercrossing among the genotypesbelonging to cluster III, IV and I was suggested to develop high yielding varieties with other desirable characters or may beused as potential donors for future hybridization programme to develop better chilli variety with good fruit yield