A study of genetic divergence among 24 genotypes of basmati rice was carried out to study the nature and magnitude of genetic divergence using D2 statistics. Total seventeen yields and quality traits were recorded on the genotypes which were raised in the RBD with three replications. Twenty four basmati rice genotypes were grouped into five different clusters based on the interaction in genetic distances. The clusters I, III and V consisted of maximum six genotypes each followed by clusters II and IV accommodating three genotypes each. The results indicated that there has been some degree of similarity among the genotypes clustered together on the basis of their origin. The maximum intra cluster distance (D2-values) was found in cluster V (1047.879) followed by cluster I (877.138). The highest inter cluster distance was found between clusters IV and V (4604.881) where as lowest distance was between clusters III and IV (1158.394), The highest mean genetic divergence was observed between the clusters IV and V exhibiting wide diversity. Cluster I containing six genotypes was characterized by lowest mean value for spikelets/panicle (103.18). For quality traits, intermediate range of divergence was observed. Cluster IV containing three genotypes was characterized by highest mean value for main panicle length (30.08) and 100 seed weight (2.54), show lowest mean value for spikelet fertility (80.103). For quality traits this cluster shows highest mean value for kernel length, kernel length after cooking (2.54), alkali spread value (14.58) and gelatinization temperature (6.9), lowest values for amylose content (65.40). The highest contribution to total D2 was observed for alkali spread value (48.91%) followed by kernel length after cooking (19.93), amylose content (11.23%), plant height (6.16%) and kernel length (4.71%). However, the pattern of distribution for some genotypes from different eco-geographical regions was found to be random, indicating that geographical distribution and genetic diversity are not related to each other. The high genetic diversity may be used as criteria for selection of parents as base material in hybridization programmes for crop improvement.