Chilli and bell pepper (Capsicum annuum L.) popularly known as 'Lal Mirch' and 'Shimla Mirch', respectively are important solanaceous crops grown throughout the world. The present investigation on generation mean analysis in chilli x bell pepper.” were carried out at research and experimental farm of Department of Vegetable Science, Dr. Y. S. Parmar University of Horticulture and Forestry, Nauni, Solan, H.P during the years 2007- 2009. The material included chilli genotypes DKC-12A and DKC-12ms which were male sterile and crossed with male fertile varieties of bell pepper i.e California Wonder and HC-201. The characters studied were plant height, fruit length, fruit width, number of fruits per plant, fruit weight, number of lobes and fruit yield per plant. Analysis of variance showed significant variation among various crosses for all the traits except for plant height.F1's performed in between the parental lines except for yield/plant. Generally F2's showed inbreeding depression and B1 and B2 behaved as per expectations. Generation mean analysis revealed that selection will be effective in improvement of plant height, fruit width, fruit weight and number of lobes. Both selection and heterosis breeding will be effective in the improvement of fruit length, number of fruits per plant and yield per plant.