Evaluation of groundwater quality is vital due to its diverse use for several purposes. In the present study, groundwater quality and suitability from the Peshawar basin, Pakistan, were evaluated for drinking and irrigation purposes. The water samples were analysed for major cations (Ca, Mg, Na and K) and anions (chloride, bicarbonate and sulphate) along with other physicochemical parameters (pH, electrical conductivity, total dissolved solids, and total hardness). About 95% of the water samples were found to be within the WHO, US-EPA and Pak-EPA permissible levels for drinking purposes. Seventy percent (70%) of the water samples belonged to the hard water category. Irrigation water quality parameters, such as, chloride, residual sodium bicarbonate, sodium adsorption ratio, percent sodium, magnesium adsorption ratio, Kelly's ration and permeability index were evaluated which demonstrated that the groundwater was highly to moderately suitable for irrigation. A correlation study was conducted to find out the mutual associations among the variables. Piper diagram indicated the overall chemical nature of the study area was calcium-magnesium bicarbonate type. Cluster analysis revealed mutual apportionment of various parameters in the groundwater of the Peshawar basin, Pakistan.