Harnessing heterosis is an effective strategy to improve cotton yield and fiber quality. The present investigation was undertaken to evaluate the magnitude of heterosis and combining ability for yield and fiber-related traits in cotton. A line × tester mating design involving six lines and two testers generated twelve F1 hybrids, along with their parents and two commercial checks, were evaluated in a randomised block design with two replications at the Regional Agricultural Research Station (RARS), Warangal, Telangana, during Kharif 2024-2025. Data on yield and fiber quality parameters were analyzed using analysis of variance and heterosis and their effects were estimated. WGCV-372 emerged as the best general combiner (general combining ability (GCA) effect) for net plot yield/kg and boll weight. WGCV Bt-60 exhibited positive GCA for boll weight, lint index, seed index and yield, indicating multi-trait superiority. The hybrids WGCV Bt-60 × PKV 081 Bt, WGCV Bt-60 × WGCV Bt-108 and WGCV-252 x PKV 081 Bt show strong heterosis improvement in yield, plant height, boll weight and fiber quality. The cross WGCV-252 × PKV 081 Bt showing strongest heterosis for boll weight with 39.1 % over mid-parent, 29.9 % over better parent and a 12.2 % increase over RCH 929 (check), indicating its potential to improve fiber yield components. WGCV Bt-60 × WGCV Bt-108 showed significant positive specific combining ability (SCA) for plant height, number of bolls per plant and net plot yield/kg. WGCV-413 × PKV 081 Bt exhibited positive SCA for plant height, monopodia, sympodia and number of bolls per plant. WGCV-252 × WGCV Bt-108 showed a significant positive SCA for lint index and ginning outturn (GOT %).