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The study on variability and diversity of 32 genotypes of rice (Oryza sativa L.) under direct seeded condition revealed significant variability at 5% level among the genotypes for all the characters. High level of broad sense heritability was observed for days to 50% flowering (0.986) followed by filled grains (0.8216) and 1000-grain weight (0.7306). Expected genetic advance was highest for yield per hectare (39.639) and filled grains per panicle (51.39). Genetic divergence analysis using Mahalanobis’s D2 statistic grouped the genotypes into 7 clusters. Cluster II had maximum number (16) of genotypes. Maximum inter cluster distance was found between cluster IV and VII (984.82). However, intra cluster distance was maximum in cluster III (363.58). Genotypes from diverse clusters viz.NR 89, PAU 3284, ARIZE SWIFT, RY 248, Varadhan, RYC489, MTU 1010 and RYC 674 could be recommend-ed for inclusion in hybridization programme for breeding under aerobic rice condition.