The study was conducted during 2012/2013 at Wonji Sugar Estate, Ethiopia, to estimate the extent of morphological diversity among sugarcane germplasm based on 16 qualitative traits. Four hundred sugarcane genotypes grouped in 20 locations were considered. Phenotypic frequency distributions of the characters were analyzed and Shannon-Weaver diversity index (H′) was computed using the phenotypic frequencies. Results indicated that the variation inH′within locations was larger than the diversity observed between locations. The value ofH′for all sample genotypes ranged from 0.43 to 0.98 with a mean of 0.87. Considerable phenotypic diversity was observed among the germplasm studied. This information can be used for establishing proper identity of the accessions, strategic conservation of these germplasm resources, and future improvement work of the sugarcane crop. This is the first study to report phenotypic diversity of local and exotic sugarcane genotypes in Ethiopia.