Marker-assisted selection (MAS) is implemented to improve Camellia oleifera yield and fruit attributes for meeting China’s increased demand for new varieties development. We conducted three-generational (G0, G1, and G2) hybridization (diallel mating) and selection experiment and used Sequence-Related Amplified Polymorphism (SRAP). SRAP markers to investigate their utility in a MAS framework. The utilized SRAP markers were instrumental in hybrid authenticity and the identification of matroclinal or patroclinal inheritance presence, thus guiding mating pair selection and direction (their role as male or females). Across the studied 3 generations, estimates of genetic diversity parameters showed steady increase with percentage increase of ((G0 to G1 and G1 to G2) 9.25 and 9.05: observed number of alleles; 3.12 and 7.80: means effective number of alleles; 12.35 and 22.34: Nei‘s gene diversity; and 14.21 and 21.77: Shannon‘s index), indicating lack of diversity reduction associated with selection. Estimates of genetic distance and their correlation with heterosis were useful in guiding selection of mating pairs for achieving the desired yield and fruit attributes (fruit diameter, height, weight, and index, peel thickness, number of seeds per fruit, seed weight per fruit, and seed rate). Most yield and fruit attributes exhibited high broad-sense heritability with increasing trend over generation intervals, indicating the increased potential of hybrid breeding for this species.