In addition to high yields, improving the quality of cotton (Gossypium hirsutum L.) fiber has become an increasingly important component of the value of cotton, especially for marketing in the international trade. The objective of the present study was to identify sources of variation for fiber quality. Seven cotton cultivars (TM1, 7235, SG125, Fibermax832, CAMD-E, MD51, and DPL50) were selected to represent a range in fiber quality and productivity, and they were crossed in a diallel design to develop F2 populations. Fiber measurements were taken on 200 individual plants in each of the 21 F2 populations and 20 individual plants from each parent. Results of the phenotypic analysis show that the F2 populations significantly differ for strength, micronaire, and elongation. Several F2 individuals also exceeded the value of their parents. These transgressive segregates could be useful both in identifying regions of the genome specific for fiber quality traits and as parents in a breeding program to develop cultivars with improved fiber properties.