Study was conducted to assess the magnitude of heterosis and its relation to parental divergence in the diallel cross material involving eight parents and 28 hybrids at Botany Garden, Department of Genetics and Plant Breeding, University of Agricultural Sciences, Dharwad during summer season 2005. Distance analysis classified parents in four well separated clusters. Parental divergence was classified into four divergence classes. DC1 (298.173) was highly diverse class and DC4 (209.090 - 278.047) was low diverse class while DC2 (278.048 - 268.647) and DC3 (268.648-209.089) were optimum divergence classes. Higher frequencies of heterotic hybrids were produced by parents with moderate diversity than the parents with high diversity. Based on parental divergence, all 28 hybrids were grouped 4 divergence classes. The combination of heterosis and diversity analysis indicated the high frequency of hybrids classified under DC2 and DC3  suggesting moderate genetic diversity is most desirable to produce highly heterotic hybrids.