The genetic improvement of the Ethiopian cereal, tef, Erugrostis ref (Zucc.) Trotter, depends upon the variability in the indigenous germplasm. A bi‐replicated randomized complete block field experiment was, therefore, carried out at Debre Zeit and Alem Tena in Ethiopia during the 1996 main season to study the pheno‐morphic and agronomic trait diversity in 320 tef germplasm lines. All of the 17 traits assessed showed substantial (p ≤0.001) variation among the lines. Genotypes and locations interacted significantly (p ≤0.05) on 11 of the traits. At about 50% similarity level, the tef lines grouped into six major clusters of nine to 243 lines. Five principal components (PCs) extracted about 71% of the entire variation of the lines. About 28% of the total variance explained by the first PC was due chiefly to variation in main shoot culm length, diameters of the two basal culm internodes, panicle length and grain yield/panicle. About 16% of the whole variance explained by the second PC originated mainly from variation in the length of the first and second basal culm internodes, grain yield/plant, and peduncle length. The third PC accounting for about 12% of the entire variance resulted largely from variation in harvest index and shoot phytomass yield/plant. Across traits, the phenotypic and genotypic coefficients of variation varied in that order from about 2% for grain yield/panicle to 58% for number of fertile tillers/plant, and from less than 1% for diameters of the two basal culm internodes and grain yield/panicle to 35% for panicle length. Estimates of broad sense heritability and genetic advance (as ratio of the mean) were highest for panicle length (71%) and number of fertile tillers/plant (21%), respectively. But both of these were lowest for the second basal culm internode diameter (1%). Overall, the study confirmed that tef is a highly versatile crop with broad trait diversity in the germplasm, and this offers ample opportunities for improvement through breeding.