The increase superiority in characteristics such as size, growth rate, fertility, yield and general fitness of hybrids produced by crossing genetically diverse inbred parents is well established in many plant and animal species. This phenomenon has been exploited to produce commercial cultivars in a range of crop species including sorghum.In sorghum F1 hybrid seed is produced by crossing genetically distinct restorer (R lines) and cytoplasmic male sterile seed parent (A lines). In the developed world commercial cultivars are almost exclusively F1 hybrids and are increasingly being used in the developing countries. In spite of the yield advantage in some circumstances, however, hybrids developed using introduced parental lines have not been adopted by Ethiopian farmers primarily because of the extra cost of purchasing seed has not been outweighed by the benefits of introduced hybrids in particular the lack of farmer preferred traits such as tall stature and larger grain size. The development of hybrids using locally adapted genotypes could have the potential to overcome the shortcomings of introduced hybrids. However, the complex cytoplasmic male sterility system and prevalence of restorer genes complicate the development of new Additionally, the hybrids derived from these locally adapted genotypes will have the benefit of containing farmers preferred traits. The groups most divergent from the introduced A/B lines were the Ethiopian landraces adapted to highland and intermediate agro-ecologies and a subset of lowland adapted genotypes. These genotype groups were also grouped distinctly from the introduced R lines, and hence provide highly divergent parental lines for hybrid development in Ethiopia.The performance and magnitude of heterosis of 139 F1 hybrids, derived from introduced seed parents crossed with selected locally adapted genotypes and introduced R lines, were evaluated in three contrasting environments. The lowland adapted hybrids displayed a mean better parent heterosis (BPH)iii of 19% and a 29% increase in grain yield, on average, in comparison to the hybrids derived from the introduced R lines. In addition, these hybrids were also found to be superior in plant height and grain weight. The mean BPH for grain yield for the highland adapted hybrids was 16% in the highland and 52 % in the intermediate, in addition to increased grain weight. The magnitude of heterosis between the three hybrid groups reflected the genetic distance between the genotype groups with the A/B lines.These results highlight the potential of locally adapted genotypes for the exploitation of heterosis in Ethiopia.In order to understand the genetic basis of increased hybrid performance, the relationship between yield component traits was assessed and the genetic variance for each subset of hybrid group was partitioned into parental lines and their interaction effects. In the lowland environment, increase in grain number and grain weight contributed to increased yield of the lowland adapted hybrids in comparison to the intro...