To assess broad sense heritability and phenotypic and genetic correlations among sugarcane yield components, an experiment was conducted at Wonji and Metehara Sugar Estates of Sugar Corporation of Ethiopia during 2012/2013. High broad sense heritability (h 2 ) was detected for stalk diameter (0.730), single cane weight (0.672), millable cane number (0.624), stalk height (0.624) and pol % (0.608), indicating that these traits could be selected for easily. Expected genetic gain of the yield components was moderate to high. All traits had low to high genetic correlations (rg = −0.005 to 0.884) with cane yield and (rg = 0.027 to 0.999) with sugar yield. On average genetic correlations were higher than phenotypic correlations. High Genotypic Coefficient of Variation (GCV), broad sense heritability and expected genetic advance were recorded for stalk diameter, single cane weight and millable cane number. A selection strategy based on these traits could lead to improvement in cane and sugar yield.