Genetic diversity and variability in 480 G. hirsutum germplasm were assessed. The germplasm lines were grouped into twenty two clusters based on yield and yield contributing characters, and selected 49 superior exotic and indigenous germplasm lines formed eight clusters based on fibre quality traits. The contribution of various characters towards the expression of genetic divergence indicated that seed cotton yield per ha (kg) contributed highest (37.63 per cent) followed by boll number (33.01%) and number of sympodia (12.25%) whereas, among the 49 germplasm lines 2.5% span length contributed 34.79 per cent followed by maturity co-efficient (14.78%) and uniformity ratio (13.72%) based on fibre quality traits. High heritability (BS) was observed for the all the characters and among these ginning outturn (%) (0.99), boll weight (g) (0.94) and seed cotton yield /plant (g) (0.92) were noticeable. Genetic advance as per cent mean was high to moderate among the characters, seed cotton yield/ha (kg) (86.28), seed cotton yield per plant (g) (59.78) and number of monopodia per plant(50.80) recorded very high genetic advance as per cent mean compare to rest of the characters. Frequency distribution of germplasm lines for all the characters was normal.