The original variation in the source population as well as the selection method may influence the genetic variation in further cycles of genetic improvement. Therefore, the objectives of this research were to determine genetic parameters (variance components and heritability) in source and intermediate stages of a true potato seed (TPS) breeding population and to calculate the genetic and phenotypic correlations in this breeding material developed by the Centre Internacional de la Papa (CIP). The intermediate stage was derived from a source population adapted to the warm lowland tropics plus introduction of exotic germplasm from North America and Europe. Non-additive genetic variation was almost nil for plant survival, tuber yield and tuber shape uniformity in both stages of the breeding population and no quantitative genetic variation for uniformity of tuber color was observed in both source and intermediate breeding materials. Heritability was higher in the intermediate stage than in the source population for plant survival (0.86 vs 0.66), tuber yield (0.30 vs 0.14) and tuber shape (0.77 vs 0.51), but it was the reverse for tuber uniformity (0.11 vs 0.72). These results suggest that potato breeders at CIP were able to keep enough genetic variation for most important characteristics for potato production from true seed in their intermediate breeding materials by adding new sources of variation to the original breeding population. Additive genetic and phenotypic correlations were significant and positive between plant vigor after transplanting and tuber yield, and tuber shape and tuber uniformity, which suggest that high yielding offspring result from early vigorous growth, and that tuber uniformity could depend on tuber shape uniformity in this breeding material.