Eighteen rice varieties which are mostly grown in Bihar state of India were studied for genetic diversity on the basis of sixteen quantitative characters using numerical taxonomic approach. Eighteen varieties were grouped into nine different clusters revealing sufficient amount of variability among the varieties. Hybridization involving Rajendra Shweta and Dhan Lakshmi with Sudha, Rajendra Bhagwati and Rajshree with Satyam, Rajendra Suwasni and Super Katarni with Nata Mahsuri, Rajendra Bhagwati and Satyam with Sudha were found to be more suitable parents for increasing the grain yield.