A study on genetic diversity, correlation and path analysis for yield and yield contributing traits was carried outduring kharif 2015 at the Agricultural Research Station, Tandur (Prof. Jayashankar Telangana State Agricultural University)Telangana. The material consisted of 49 advanced breeding lines collected from ICRISAT, Hyderabad. Observations on eighttraits viz., plant height, days to 50 per cent flowering, days to maturity, number of primary branches per plant, number ofsecondary branches per plant, number of pods per plant, 100-seed weight, and seed yield (kg/ha) were recorded. The geneticparameters like divergence, genotypic and phenotypic variability, genotypic and phenotypic coefficient of variation,heritability and genetic advance were studied along with correlation coefficient for seed yield and its component traits ofpigeonpea. Mahalonobis D2 statistics classified the genotypes into four distinct clusters. Clusters II and IV exhibitedmaximum inter cluster distance of 10.16. Days to 50 per cent flowering followed by number of primary branches per plantcontributed to maximum genetic divergence. Genotypes in cluster I recorded highest number of primary branches, secondarybranches and pods per plant along with seed yield. Genotypes in cluster III recorded highest test weight while genotypesin cluster IV recorded less number of days to maturity. Genotypic coefficient of variation (GCV) observed was 4.39 to35.49 per cent for the traits under study which provides information regarding the extent of variability present among thegenotypes. Seed yield was significantly and positively correlated with number of primary branches, secondary branchesand number of pods per plant. Path coefficient analysis indicated that number of pods per plant exhibited maximum directeffect followed by number of primary branches per plant. The findings from the present study suggested that genotypesfrom cluster I and IV may be utilized for the development of high yielding short duration varieties that can escape terminaldrought situation.