Twenty five traditional rice genotypes of South India were evaluated for genetic divergence and interpreted higher level of genetic heterogeneity for major rice descriptors besides being accommodated in eight clusters. Eight varieties viz., Chinnapunchai, Virendra, Navara, Jaisriram, Adukan, Kottarasamba, Mallampunchan, Kalinga III occupied the first cluster while cluster IV comprised of six varieties (Surakkuruvai, Meikuruvai, Kattuyanam, Poongar, Veethiruppu, Thondi). Kadaikannan, Purple Puttu, Kavuni, Kayamma accommodated in cluster II while the clusters V (Kerala Gandhagasala, Thooyamalli) and VII (Krishna Hemavathi, Kalahari) accommodated two genotypes. The clusters III, VI and VIII were represented each by single variety (Maranellu, Aathira and Jeeraga samba respectively) indicating high degree of heterogeneity among the varieties. Maximum intra cluster distance was observed in cluster IV, followed by cluster I, indicating that some genetic divergence still existed among the varieties. This could be made use of in the yield improvement through recombination breeding. From the inter cluster D2 values of eight clusters, it can be seen that the highest divergence occurred between cluster VI and cluster VIII followed by cluster VII and cluster VIII, cluster I and cluster VIII and cluster III and cluster VIII, suggesting that the crosses involving lines from these clusters would give wider and desirable recombinations. The lowest divergence was noticed between cluster I and cluster IV followed by cluster II and cluster V. The greater the distance between two clusters, the wider the genetic diversity between the varieties. Keeping this in view, it is indicated that hybridization between the varieties (Aathira) of cluster VI and cluster VIII (Jeeragasamba), cluster II (Krishana Hemavathi and Kalahari) and cluster VIII (Jeeragasamba), cluster I (Chinnapunchai, Navara, Mallampunchan, Virendra, Jaisriram, Adukan, Kottarasamba and Kalinga III) with cluster VIII (Jeeragasamba) and cluster III (Maranellu) with cluster VIII (Jeeragasamba) would produce encouraging results.