An experiment was conducted to assess the genetic diversity and morpho-physiological traits responsible for drought tolerance under well watered and water stress condition. The one hundred inbred lines are grouped into 18 and 12 clusters under well watered and water stress condition respectively. The cluster I comprised of maximum number of inbreds under both the condition. The numbers of clusters are reduced under water stressed condition and all the drought tolerance inbreds are grouped together in the cluster I. The maximum inter cluster distance was observed between cluster XVI and XVIII (68.78) followed by cluster VIII and XVI (68.16) under well watered condition. While, under water stressed condition, the clusters VI and XII (113.64) showed the maximum inter cluster distance followed by clusters III and XII (108.07). Among the inbred lines screened under water stress condition, fifteen inbreds viz., DMIL 101, DMIL103, DMIL112, DMIL117, DMIL122, DMIL125, DMIL129, DMIL130, DMIL136, DMIL140, DMIL145, DMIL147, DMIL150, DMIL152 and DMIL160 showed superior performance for various morpho-physiological traits and identified as drought tolerance inbreds , while inbreds viz., DMIL480, DMIL492, DMIL493, DMIL510, and DMIL518 recorded the maximum anthesis-silking interval, drought susceptibility index and leaf senescence under water stress condition. The drought tolerant inbred lines identified in the present study could be utilized for development of superior drought tolerant single cross hybrid suitable for rainfed ecosystem.