Article Information Knowledge of nature and magnitude of variation existing in available plant breeding materials is of great importance for successful selection of varieties for yield and other desirable traits. Therefore, this study was conducted to evaluate the genetic variation among 4 local and 11 introduced desert banana (Musa sp.) genotypes. The genotypes were planted at Dire Dawa, Eastern Ethiopia in randomized complete block design with five replications. Genetic variability components analyses were conducted considering 20 morpho-physicochemical traits. The results showed the presence of significant differences among genotypes for all traits. Phenotypic and genotypic coefficient of variations ranged from 8.95 to 52.63% and 7.2 to 48.16%, respectively, with low magnitude of differences and moderate to high for most of the traits. Heritability (H2) and genetic gain (GA) values were ranged from 14.69 to 98 and 7.4 to 81.45%, respectively, and both H2 and GA values were high and moderate for 16 traits. Fruit yield showed strong genotypic and phenotypic correlations with all growth traits and yield components with higher magnitude of genotypic correlation coefficients. Euclidean distance ranged from 2.36 to 7.6 which distinctly grouped genotypes into two clusters and five subgroups. Moreover, the local clones were more distant each other and with introduced genotypes and performed better than introduced genotypes for most of the traits including fruit yield. The study revealed the presence of genetic variation among local and introduced genotypes and most of the traits were controlled more of by genetic factors. This suggested the importance of exploiting genetic variability of local banana clones as equal to introduction and evaluation of exotic genotypes and the higher chance of increasing fruit yield through indirect selection for growth traits and yield components.