Background Ethiopia is one of the centres of genetic diversity of sesame (Sesamum indicum L.). The sesame genetic resources present in the country should be explored for local, regional and international sesame improvement programs to design high performing and market preferred varieties. This study's objectives were to determine the extent of genetic variation among 100 diverse cultivated sesame germplasm collections of Ethiopia using phenotypic traits and simple sequence repeat (SSR) markers to select distinct and complementary specimens for breeding. One-hundred sesame entries were field evaluated at two locations in Ethiopia for agro-morphological traits and seed oil content using a 10 × 10 lattice design with two replications. Test specimens were profiled using 27 selected polymorphic SSR markers. Results The analysis of variance revealed significant (P ≤ 0.05) entry by environment interaction for plant height, internode length, number of secondary branches, and seed yield. Genotypes such as Hirhir Kebabo Hairless-9, Setit-3, Orofalc ACC-2, Hirhir Humera Sel-6, ABX=2-01-2, and Setit-1 recorded higher grain yield of > 0.73 ton ha-1 with excellent performance in yield component such as oil and seed yield per hectare. Seed yield had positive and significant (p < 0.01) associations with oil yield (r = 0.99) useful for simultaneous selection for yield improvement in sesame. The SSR markers revealed gene diversity and polymorphic information content of 0.30 and 0.25, respectively, showing that the tested sesame accessions were genetically diverse. Cluster analysis resolved the accessions into two groups, while population structure analysis revealed four major heterotic groups, this enabling selection and subsequent crosses to develop breeding populations for cultivar development.Conclusions Based on phenotypic and genomic divergence, the following complementary specimens were selected: Hirhir Humera Sel-6, Setit-3, Hirhir Kebabo Hairless Sel-4, Hirhir Nigara 1st Sel-1, Humera-1 and Hirhir Kebabo Early Sel-1 (from cluster II-a), Hirhir kebabo hairless-9, NN-0029(2), NN0068-2 and Bawnji Fiyel Kolet, (from cluster II-b). The selected genetic resources are recommended for use in sesame production and breeding programs in Ethiopia.