The main target of this research work was to evaluate the potential of various potassic fertilizers and their levels on growth and yield of chilli. Field experiments were conducted during kharif 2010-11 and 2011-12. The treatments consisted of four sources of potassium viz., Potassium schoenite, Potassium sulphate, Potassium nitrate and Potassium chloride applied at four levels each (30, 60, 90 and 120 kg K2O ha-1). Various treatment combinations showed significant variation with respect to growth, yield attributes and yield. Application of potassium @ 120 kg K2O ha-1 proved significantly better with respect to improvement in the plant height and spread. Among potassium sources, Potassium nitrate was significantly superior. Maximum yield and yield related attributes were recorded with Potassium schoenite at 90 kg K2O ha-1. Optimum and maximum doses of potassium were 97.83 and 144.00 kg K2O ha-1 with a corresponding dry fruit yield of 46.40 and 48.54 q ha-1 respectively. The net returns at optimum dose of potassium (97.83 kg K2O ha-1) were 443719.61 ha-1 with benefit cost ratio of 3.25.