A field experiment was conducted to study the influence of levels of potassium fertilizer (0, 66 and 132 kg ha1) and types of mulching (black plastic, reflective plastic and coconut fronds) on growth and yield of chilli. Plant height, yield, fruit number and dry weight of plant increased with increasing K levels and mulching. Yields were increased by 89% and 142% with K levels of 66 and 132 kg ha1, respectively. Highest yield was obtained from plant grown under reflective plastic mulch. Nitrogen, P, K and Ca content in leaf tissues, soil temperature and moisture under mulched conditions were higher than without mulch. There was a positive correlation between plant dry weight with soil temperature and moisture.