CRSM-38 is a high yielding and leaf curl virus tolerant cotton variety, developed in Pakistan. Hybridization and subsequent pedigree method’s selection work was carried out under natural field conditions at Cotton Research Station, Multan during the year 2001 and 2002 by using a virus tolerant strain (583-85/99) and a variety (FH-900). The new variety exhibited an average of 77.9% higher degree of tolerance against cotton leaf curl virus (CLCuV) over respective checks, and attained an average of46.52 % higher seed cotton yield than that of CIM-496 under various climatic conditions revealing its wider adaptability. It possesses harmonious combination of fiber traits, that is, 39.94% ginning out turn(GOT), 29.07 mm fiber staple length, 4.38 ìg/inch fiber micronaire and 31.38 g/tex fiber strength. Significant differences among genotypes showed higher degree of genetic variability, heritability (78 to 90%) and genetic advance (38 to 63.90%) in seed cotton yield suggesting that these genetic components were under the control of additive genetic effects, whereas tolerance to CLCuV could be improved through selection for high seed cotton yield. On the basis of the aforementioned features, CRSM-38 was recommended for general cultivation by Punjab Seed Council during the year 2009.Key words: Gossypium hirsutum L., CRSM-38, seed cotton yield, cotton leaf curl virus (CLCuV), heritability, additive genetic effect, genetic advance.