A total of 53 genotypes of groundnut including twelve lines, three testers, their thirty-six hybrids and two checks, viz., 5B XI and JL-24, were grouped in 16 clusters by multivariate analysis Mahalanobis' D2-statistic. The crosses between parents having more divergence neither had heterosis for more number of characters nor had higher magnitude of heterosis. Also, there was no correlation between genetic divergence and heterosis in any character except that directional and absolute heterosis had negative correlation in 100-kernel weight and shelling per cent, respectively. Further, correlation of genetic divergence and F1per se was significant positive for barren pegs per plant and height of main axis and negative for harvest index, shelling per cent and kernel yield per plant. Correlation between divergence of individual character (variability) and per se was significant positive for barren pegs per plant, days to flowering, pod yield per plant, height of main axis, mature pods per plant and haulm yield per plant and negative for harvest index. Therefore, per se of F1 for indivisual character was more related with variability between parents for individual character rather than total divergence.