Cymbopogon winterianus Jowitt. is cultivated worldwide for its industrial and pharmaceutical applications. The economic value for this crop is due to its herbage, essential oil yield, and citronellal content. Therefore, this study was conducted to identify the traits that are important to increase the economic yield and to estimate the variability among the Cymbopogon winterianus germplasm necessary for selection of superior genotypes. In this study, a total of 72 accessions of Cymbopogon winterianus were collected from different parts of Northeast India and planted in the experimental farm of CSIR-NEIST, Jorhat, Assam, India. Divergence and association studies among the nine characters were estimated from the 3-yr pooled data. The genotypic coefficient of variation was slightly lower than the phenotypic coefficient of variation for all the traits studied. High genetic advance with high heritability (H 2 BS) estimates were observed in tillers per bush, herbage yield, citronellal, and essential oil content. Path coefficient analysis also supported that the leaves per bush, tillers per bush, leaf breadth, and length of basal sheath were the major contributing characters for the herbage yield. Tillers per bush, leaves per bush, and herbage yield were the direct and indirect factors affecting the essential oil content. Divergence study partitioned the germplasm into 15 different clusters in which tillers per bush, leaves per bush, plant height, leaf length, and herbage yield contributed more towards variability. All the parameters studied could be considered as selection criterion to improve economic yield of C. winterianus and in estimating variability necessary for breeding program.