This study was conducted to determine nature and magnitude of genetic parameters and their utilization in development of superior varieties/hybrids of pigeonpea. Results showed that the sufficient amount of variability was found in the entire gene pool for all the traits studied. Secondary branches/plant showed highest phenotypic as well as genotypic coefficient of variation followed by seed yield/plant and biological yield. High heritability coupled with high genetic advance as per cent of mean was observed by 100-seed weight, pods/plant, seed yield/plant, biological yield/plant and secondary branches/plant suggesting preponderance of additive gene action in the expression of these characters, while plant height, primary branches/plant, pods/plant, seeds/pod and harvest index showed high heritability with moderate genetic advance as per cent of mean suggesting greater role of non-additive gene action in their inheritance. Biological yield/plant, pods/plant, 100-seed weight, harvest index and secondary branches/plant showed positive and highly significant correlation with grain yield/plant to emerge as most important associates of seed yield. Path analysis identified biological yield/plant followed by harvest index, pods/plant, days to maturity, primary branches/plant, 100seed weight and seeds/pod as most important direct yield contributing traits which merit due consideration at the time of devising selection strategy aimed at developing high yielding varieties in pigeonpea.