Chilli veinal mottle virus (ChiVMV), is a Potyvirus that causes severe yield losses in capsicum worldwide including Pakistan. In the current study, genetic diversity and molecular evolution of ChiVMV were explored based on the CP gene sequences. In multiple sequence alignments of the CP gene of 29 ChiVMV isolates, Pakistani isolates shared 82–92% and 78–96% nucleotide and amino acid identities, respectively with other ChiVMV isolates. In nucleotide and amino acid based phylogenetic analysis of the CP gene, the Pakistani isolates clustered with Indian (JN692501 and JN624776) and Chinese (KC711055, KC711055, JX088636 and HQ218936) isolates in a separate clade. In all Pakistani isolates, conserved motifs (DAG, WCIEN, QMKAAL, and AFDF) were located at 6–8, 141–145, 222–225, and 242-248th amino acid positions, respectively. Eleven recombination events were detected in the isolates investigated. One Pakistani isolate KX236451 was suggested to be a recombinant between the Pakistani isolate (KT876050) and the Indian isolate (JN692501). Most of the codons were found under negative selection except for codons at 28, 34, and 38th positions that were found under positive selection by REL method. An infrequent gene flow was observed between the ChiVMV isolates from Pakistan and other countries of the world. To our knowledge, this is the first report on genetic diversity of Pakistani isolates of ChiVMV based on recombination and phylogenetic analysis. Findings of this study may be helpful in developing sustainable management strategies against ChiVMV not only in Pakistan but also in other countries, ultimately resulting in enhanced and good quality production of chilli crop.