The present study was conducted to assess the genetic variability and diversity of 49 local landraces of rice. Number of grains exhibited high PCV (21.95) and GCV (16.56) and was followed by number of spikelets harvest index, test weight, and productive tillers. High heritability coupled with high genetic advance as per cent of mean was recorded for all characters. Maximum number of genotypes were present in cluster I (15). Maximum inter-cluster distance was observed between cluster II and IV (115.99) and the maximum intra-cluster distance was noticed in cluster III (32.45) indicating hybridization involving genotypes within this cluster may result in good cross combinations. The maximum contribution towards divergence was made by days to 50 % flowering (54.13%). The genotypes belonging to five different clusters were distinct and diverse hence, better performing genotypes namely, Bangaarugandu, Kempudoddi, Kempukaaru, Gajagunda, Rathnachudi, Bagyajyothi, Maranellu, Dappabatta and Balaji could be utilized in hybridization programme.