Improvement of agronomic traits and fibre quality in cotton requires detailed information on genetic variation available in the population. The objective of this study was to investigate variability, heritability and character association in nine agronomic and five fibre quality traits among 220 recombinant inbred lines (RILs) derived from MCU 5 and TCH1218. The study was undertaken during kharif 2018-19 at Department of cotton, TNAU, Coimbatore. High PCV and GCV were exhibited by number of monopodia per plant, while moderate GCV and high PCV were recorded by number of bolls per plant. The traits boll weight, single plant yield, lint index and fibre fineness exhibited moderate GCV. Most of traits except five were in similar trend for GCV and PCV indicating less environmental influence. All traits had high heritability, whereas high GAM was expressed for number of monopodia per plant, boll weight, lint index, elongation percentage and fibre fineness. Such traits were additive in nature and process of selection will be effective. Number of bolls per plant and number of sympodia per plant were positively and significantly correlated with single plant yield. In fibre quality, bundle strength and elongation percentage were significantly and positively correlated with upper half mean length. So, while selecting high yielding genotypes these traits are to be considered. Superior transgressive segregants for single plant yield was identified as RIL 44 as it performed better for other yield component traits, while for fibre quality RIL 63 performance was comparatively higher. Among the population RIL 220 ranked top for single plant yield and upper half mean length. Fibre quality traits had few favourable segregants when compared to yield traits. These identified RILs can be used in advance breeding trial for varietal development.