Thirty genotypes of chilli (Capsicum annum) were studied for genetic divergence for eight characters utilizing Mahalanobis D2 statistics. The genotypes were grouped into seven clusters. The genotype GP-65(A) was quite different and formed cluster VII. Variability in this material was limited and was mainly due to a few extreme types. The genotype(s) in clusters II, V and VII had the highest dry yield per plant and higher values for fruits per plant, fruit length and days to flower and could be utilized in breeding programmes.