The present investigation was undertaken to have an idea of the nature of gene action for dry fruit yield and related traits and to evaluate the most promising crosses obtained by hybridizing eight parents of the Capsicum annuum species. Eight parents were crossed in half diallel manner to generate 28 hybrids which then were analyzed along with parents in a Randomized block design with three replicates. The data were submitted to analysis of variance at 5% and 1% probability. The variation among the hybrids was further partitioned into genetic components attributed to general combining ability (GCA) variances and specific combining ability (SCA) variances and effects were analyzed by adopting Model-I, Method-2, since the present study includes parents and F1s (without reciprocals). Both additive and non-additive effects influenced the hybrid’s performance, as indicated by the GCA/SCA ratio. The non-additive effects, epistasis and/or dominance, played a more important role than the additive effects in plant height, number of primary branches, number of secondary branches, number of fruits per plant, seed weight and dry fruit yield per plant and hence for such characters development of hybrids is the best strategy.