Tef [Eragrostis tef (Zucc.) Trotter] is one of the major cereal crops grown in the Horn of Africa for food and as an export commodity for its unique nutritional qualities. Moisture stress is the leading yield limiting factor of tef production in northern Ethiopia. The objectives of this study were to assess the genetic variability present among 144 tef genotypes of varied population and to identify important agronomic traits with high heritability and correlations for effective breeding. The genotypes were evaluated using four experiments laid down in a 12 x 12 lattice design under moisture stressed and non-stressed conditions in the northern Ethiopia. Main shoot panicle seed weight had high genotypic coefficients of variation (GCV) of 22.4% and 25.9% under non-stressed and stressed conditions, respectively. Grain yield had GCV values of 17.6% and 20.0% in the corresponding environments. Heritability was highest under optimum condition than the moisture stressed, which is valuable to conduct effective selection. A path-coefficient analysis indicated that direct selection for high biomass, harvest index and late maturity could increase grain yield under optimal conditions, while under moisture stress conditions early maturity, high biomass and harvest index were important direct selection criteria for tef breeding aiming for drought tolerance.Keywords: Correlation, Ethiopia, genetic advance, heritability, path-analysis. Abbreviations: ADARC _Adet Agricultural Research Center; ARARC_ Areka Agricultural Research Center; BARC_ Bako Agricultural Research Center; BYLD_biomass yield; CSA_ Central statistics authority; DM_days to 75% maturity; DPE_days to panicle emergence; DZARC_ Debre-Zeit Agricultural Research Center; GAM_ genetic advance as percent of the mean; GCV _Genotypic coefficients of variance; GPF_grain filling period; GYLD_grain yield; H_ broad sense heritability; HARC_Holleta Agricultural Research Center; HI_harvest index; LODG_lodging index; MARC _Melkassa Agricultural Research Center; NPT_number of tillers per plant; PCV _phenotypic coefficients of variance; PLHT_ plant height; PNLG_ panicle length; PSW _main shoot panicle seed weight;