The study was conducted to estimate correlation coefficients and direct and indirect effects by path analysis for pod yield per plant and its components by using 64 Peanut genotypes. In the current study, peanut genotypes were assessed for quantitative and qualitative traits during the main cropping season of 2021/22 in the North, Western Ethiopia Metekel zone at Pawe Agricultural Research Centre. The experiment was carried out to assess 64 Peanut genotypes in an 8x8 simple lattice design to generate information on the association of yield and yield-related traits and to ascertain the direct and indirect effects of yield-related traits on kernel yield. Data were recorded for 14 traits and subjected to analysis of variance ANOVA using SAS software version 9.4. Correlation analysis revealed a highly significant (P < 0.001) positive correlation between kernel yield per hectare and harvest index, number of pods per plant, number of seeds per pod, hundred seed weight, and shelling percentage at the phenotypic and genotypic levels, respectively which revealed the true relationship between the traits Path analysis was divided into direct and indirect effects for various characters for the kernel yield per hectare. At the phenotypic level, days to maturity, oil content, and shelling percentage had the largest positive direct effects on kernel yield, whereas pod yield and shelling percentage had the highest positive direct effects at the genotypic level. The result indicated that there is a good opportunity to improve kernel yield using the tested genotypes in Peanut breeding programs Therefore, emphasis should be given to pod yield followed by days to maturity, and shelling percentage to increase kernel yield production.