Wheat (Triticum aestivum L.) is one of the most important and widely cultivated crops in the world, used mainly for human consumption and support nearly 35% of the world population. The experiment was conducted at Adet agricultural research center in simple lattice design. A set of 49 genotypes was used to estimate the genetic diversity between genotypes. The genotypes were evaluated for 16 characters and showed wide variability for the studied components. Variance components were used to estimate component of variation, heritability and genetic advance. Genotypes differed significantly for all characters under the study, which indicate the existence of sufficient genetic variability with in different genotypes. Moderate phenotypic coefficient of variation was recorded in flag leaf length, tiller per plant, leaf per plant, number of kernel per plant, dry biomass, grain yield whereas moderate genotypic coefficient of variation was recorded in grain yield. None of the characters had the highest genetic advance as percent of mean but characters that showed moderate genetic advance as percent of mean were recorded for flag leaf length, thousand seed weight, grain yield, harvest index, days to heading and number of spikelet per spike. Genotypically, grain yield had positive and highly significant correlation with hectoliter weight (r =0.54),thousand seed weight (r =0.67) and harvest index (r=0.50). Phenotypically, Grain filling period and days to heading had positive and highly significant correlation with days to maturity(r =0.57). Principal component analysis was applied to group genotypes according to their similarity on the basis of 16 characters. The first six principal components explained 77.252% of the total variation, of which the first and the second principal components explained 23.337% and 15.064%, respectively. this study generally indicated that there was genetic variability among the genotypes. Thus, there is an opportunity in the improvement of bread wheat genotypes through wide hybridization . Key words: Cluster analysis, Genetic diversity, Heritability