The genetic divergence study was conducted in 64 genotypes of chilli (Capsicum annuum L.) for 15 agro-morphological traits. Significant divergence existed among 64 chilli genotypes almost for all the traits. The genotypes under study were grouped into eight clusters as per Mahalanobis D2 (1928) analysis employing Tocher's method with maximum number of genotypes in cluster I (37) followed by cluster IV (12), cluster II (6), cluster V (5) and rest of the clusters were monogenotypic. Maximum intercluster distance was observed between clusters II and VI (19369.21), while maximum intra-cluster distance was observed in cluster IV (4230.34). The per cent contribution towards the total genetic divergence revealed that plant spread (29.76%), seed yield per plant (25.69%), average fruit weight (17.41%), number of fruits per plant (10.22%), days to first flower (4.01%), fruit length (4.76%), number of branches per plant (4.51%) and fruit diameter (2.88%) were the major contributing characters towards total genetic divergence. The crosses between the genotypes from cluster VI with II and VIII and cluster VIII with those of I, III and IV are likely to exhibit high heterosis and produce recombinants with desired traits in segregating generations.