Information on the combining ability of elite germplasm is essential to maximize their use for variety development. In the current study, sixty-six F1 crosses resulted from diallel crosses of 12 QPM inbred lines and two standard checks BHQP-542 and Melkassa-6Q were evaluated using alpha-lattice design with two replications during the 2009 cropping season at Mechara Agricultural Research Center. The objectives of the study were to determine general(GCA) and specific (SCA) combining ability for yield and yield related traits; estimate correlation among yield and yield related traits and find direct and indirect effects of yield related traits on grain yield. Analysis of variance showed that mean squares due to entries were significant to highly significant for most traits studied, indicating mean squares due to entries, crosses and crosses versus checks were non significant for stand count after thinning, leaf rolling, number of kernels per ear, plant aspect, shelling percentage, number of ears per plant and disease score. Entry and cross mean squares were non significant for stand count at harvest and ear aspect.