In a field experiment conducted on Typic Chromustert at Main Agricultural Research Station, University of Agricultural Sciences, Dharwad, the sources and levels of potassium had significant effect in improving the quality of chilli. Application of potassium @ 150 per cent RDK through SOP in 2 split doses recorded highest ascorbic acid content (175.16 mg 100 g-1), colour value (225.28 ASTA units) and oleoresin content (16.79%). It was observed that the concentration of K is highest in the fruit followed by N. colour value, per cent oleoresin of red chilli as well as ascorbic acid content of green chilli were significantly and positively correlated (r=0.855** ,0.909** and 0.841** , respectively) with K concentration in chilli fruit.