Due primarily to the logistics of producing F₁ seed, use of heterosis in cotton has been limited: The objective of this study was to research the potential of using F₂ hybrids by comparing their yield, fiber quality, and interaction with environments with their parents and F₁s. The genetic design was a half-diallel consisting of seven Midsouth parents, 21 F₁s, and 21 F₂s. The 49 genotypes were grown in-1987 and 1988 it three sites near Stoneville. At each site an April and May planting was made resulting in a total of 12 environments. Yield was determined from 4 replications. Yarn tenacity was determined for two of the 1987 tests and short fiber content was determined from three 1987 tests. Average yield of first harvest was 594,688, and 643 kg ha^-1 for the parents, F₁s and F₂s, respectively; total yield was 953, 1065, 1025 kg ha^-1, respectively. The average yarn tenacity was 130, 134, and 132 mN/tex for the parents, and F₁ and hybrids, respectively. The F₁ and F₂ hybrids had significantly less short fibers than the parents. The highest yielding parent was 'DES 119' with an average yield of 1031 kg ha^-1 and the most currently used U.S.A. cultivar 'Deltapine 50' was 959 kg ha^-1. The highest yielding F^-1 hybrids DES 119 X Delcot 344 and DES 119 X 'Coker 81-613' averaged 1145 and 1143 kg ha^-1, respectively or about 15% greater yields than the average of DES 119 and Deltapine 50. The F₂ hybrids from these two respective crosses averaged 8% higher yields than the average of these two cultivars. No differences in adaptive ability between parents F₁s and F₂s were detected. The results indicate hybrids have potential of increasing yields and fiber quality in cotton.