Genetic variability, heritability and genetic advance as per cent of mean for 14 characters in 7 elite and diverse genotypes of chilli (Capsicum annuum L.) were studied. The phenotypic coefficient of variation was higher than the respective genotypic coefficient of variation for all the 14 characters under study. Considerable amounts of GCV and PCV were observed for capsaicin content, number of fruits per plant, fruit length, fruit diameter, leaf area and total fresh yield per plant indicating the existence of greater diversity for these characters. Heritability, in broad sense, was found appreciably high (>90%) for the characters: number of primary branches, leaf area, fruit length, number of fruits per plant, total fresh yield per plant and the total dry yield per plant. High heritability estimates have been found to be helpful in making selection of superior genotypes on the basis of phenotypic performance with respect to quantitative characters. High heritability coupled with high degree of genetic advance was noted for total fresh yield per plant, number of fruits per plant and ascorbic acid content in both, the F1s and parents. High heritability coupled with high genetic advance and genetic coefficient of variation reflects that the above characters are under the control of additive gene effects, and could be relied upon for yield improvement.