Cotton (Gossypium hirsutum L.), an important agricultural fiber crop belonging to the Malvaceae family, exhibits wide genetic diversity that requires thorough investigation for the development of climate-smart cotton. This study aimed to assess the genetic variation of cotton varieties in relation to yield-related characteristics. A total of fifty genotypes were sown at the Cotton Research Institute (CRI) in Multan using a randomized complete block design (RCBD) with two replications. The row-to-row and plant-to-plant distances were maintained at 75 cm and 23 cm, respectively. Data were collected for various morphological traits, including plant height (PH), monopodial branches per plant (MO), sympodial branches per plant (SY), number of nodes (NO), boll length (BL), boll width (W), boll weight (BW), total boll weight per plant (TB), and seed cotton yield (SCY). Maximum values were recorded for PH (109.40 cm), MO (8.0500 branches/plant), SY (25.100 branches/plant), NO (41.550 nodes), BL (41.750 mm), W (41.300 mm), BW (3.9500 mg), TB (33.750 g), and SCY (95.400 g). ANOVA results indicated significant differences among all the genotypes. Positive and significant correlations were observed between PH, SCY, and BL, demonstrating the successful utilization of selection criteria based on these traits to improve cotton yields. Cladogenesis studies revealed that class I, II, and III were represented by FH-183, VH-281, and AGC-2, respectively, exhibiting superior genetic potential in terms of morphological traits. Principal component analysis (PCA) demonstrated that 81.88% of the total variance was primarily attributed to traits such as SY, TB, PH, SCY, and BW, with the first five components having eigenvalues greater than 1. These findings provide breeders with valuable insights into selecting desirable characteristics for cotton varieties.