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Genetic variability and correlations were studied in seven inbred lines of maize and their 21 direct cross combinations obtained from a diallel cross. Based on the data recorded on eight yield related traits, the values of genotypic correlation were slightly higher than the corresponding phenotypic values. Phenotypic and genotypic correlations between grain yield on one hand and plant height, ear height and ear length on the other were positive and significant. Genotypic and phenotypic coefficients of variation were high for grain yield, ear height, 100-kernel weight, ear length and number of kernel rows/ear. Genotypic variation was found to be good indication of phenotypic variability. Heritability estimates and genetic advance were high for grain yield, ear height, plant height and ear length.