The colour and pungency of chilli, fades away during storage, thereby reducing its marketability which results in economic losses to the farmers. An experiment was therefore, conducted to study the role of potassium application on quality and storage of chilli. The experiment was conducted under temperate agro-climatic conditions of Kashmir valley at vegetable Research Farm, SKUAST-Kashmir with four sources of potassium viz., potassium nitrate (KNO3), potassium sulphate (K2SO4), potassium chloride (KCl) and potassium schoenite (K2SO4.2MgSO4) each applied at the rate of 30, 60, 90, 120 kg K2O ha-1. Potassium schoenite recorded maximum dry matter (24.7%), maximum capsanthin (138.95 ASTA units), capsaicin (0.370%) at harvest and maximum retention of capsanthin and capsaicin after six months of storage among the treatments tested. In addition, lowest percentage of discoloured fruits viz., 3.05% was recorded with the application of 120 kg K2O ha-1 as potassium schoenite. Potassium levels @ 120 kg K2O ha-1 significantly improved total phenol content, recording 7.72 mg g-1 in comparison to other levels. Potassium sources did not influence total phenol content in chilli.