Crop improvement and the dissection of complex genetic traits require germplasm diversity. A core collection is a gateway for the utilization of diverse accessions with beneficial traits in applied breeding programs. 630 USDA Valencia peanut germplasm and a control cultivar (New Mexico Valencia C) were evaluated for 26 descriptors in augmented design for two seasons. The accessions were stratified by country of origin, and data on morphological and agronomic descriptors were used for clustering following Ward’s method. About 10% or a minimum of one accession from each cluster and region was selected to develop core subset of 77 accessions. Comparison of means using Newman-Kuels test, variances using Levene’s test, frequency distribution using χ² test, and Shannon-Weaver diversity index between core subset and entire collection indicated that the genetic variation available for these traits in the entire collection has been preserved in the core subset. The similarity in correlation coefficients in entire collection and core subset suggest that this core subset has preserved most of the co-adapted gene complexes controlling these associations. The peanut breeders engaged in improving the genetic potential of Valencia peanuts will find this core subset useful in cultivar development.