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Character correlation and path coefficient analysis study was conducted using 55 hot pepper genotypes with the objectives to assess the nature of character correlation at phenotypic and genotypic levels and direct and indirect effects of traits on yield and yield components. The experiment was conducted during 2015-20116 at six environments in Southern Ethiopia using RCBD with three replications. The result revealed that, in most cases, the genotypic correlation coefficients were higher than their respective phenotypic correlation coefficients indicating their inherent association of traits and hence more advantageous for breeding purposes. Phenotypic and genotypic correlation further confirmed that branch number per plant, fruit number per plant, fruit length, fruit diameter and fruit weight were the most important traits for improving the genotypes for higher fruit yield and may be applied for selection in hot pepper productivity. Path analysis revealed that the maximum direct effect on fresh fruit yield was exerted by dry weight (0.6686), average fruit length (0.2185), fruit diameter (0.2085) and average fruit number per plant (0.1444), Thus, on the basis of current result, fruit length, diameter and fruit number per plant could be the most important yield component characters which might be selected for yield improvement while the converse was true with plant height and stem girth (diameter) at phenotypic level.

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