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Transpiration Efficiency (TE), the biomass produced per kilogram of water transpired is an ideal parameter for measuring genetic variation in crop water use efficiency. Assessing the genetic diversity and variability in maize for this character will help us to understand the most efficient genotypes for water use. Studies on 89 maize genotypes for two years using six characters revealed significant differences among the genotypes and wide range of variation for all the characters. High variability was observed for total biomass, seed yield and TE-seed. High heritability and genetic advance as per cent of mean was observed for all the characters except water transpired. Eighty nine genotypes were grouped into 10 clusters and total biomass contributed maximum towards genetic divergence. TE seed was positively and significantly correlated with all the characters studied except water transpired. As there is a lot of variability present in the maize genotypes and the desirable characters reported high coefficients of variability, heritability, genetic advance and positively high correlation among the characters, the chance of selecting superior genotypes are more. Moreover, crossing between different clusters of clusters will enhance the chance of transgressive segregants. Maize genotypes Z 32-87, NSJ-176, DTL-2, Z101-68, HKI-1040-4, NSJ-189, LM-16, HKI-1025, NSJ-2011-26, NSJ-2011-37, DTL-3, DTL 4-1 HKI-1332, Z-60-72 and PSRJ-13038 were found to be superior for TE biomass and TE seed. [ABSTRACT FROM AUTHOR]