The peanut root-knot nematode (Meloidogyne arenaria race 1) is potentially a major pest of pepper cultivars belonging to the species Capsicum chinense. Greenhouse tests were conducted to: 1) compare the level of resistance to the peanut root-knot nematode exhibited by the recently released C. chinense germplasm line PA-353 to that exhibited by the C. annuum cv. Carolina Cayenne; 2) to determine the inheritance of the resistance in the C. chinense germplasm line PA-353; and 3) to determine the genetic relationship between the resistance exhibited by the C. chinense germplasm line PA-353 and that exhibited by the C. annuum cv. Carolina Cayenne. The level of resistance exhibited by the C. chinense germplasm line PA-353 was equal to the high level of resistance of the C. annuum cv. Carolina Cayenne. Evaluation of parental, F1, F2, and backcross populations of the cross between the resistant C. chinense germplasm line PA-353 and the susceptible C. chinense accession PA-350 indicated that the resistance in C. chinense is conditioned by a single dominant gene. The F2 population of the interspecific cross between the resistant C. chinense germplasm line PA-353 and the resistant C. annuum cv. Carolina Cayenne did not segregate for resistance, indicating that the dominant resistance gene in C. chinense is likely allelic to or closely linked to a gene conditioning resistance in C. annuum. The availability of a simply inherited source of outstanding resistance makes breeding for peanut root-knot nematode resistance a viable objective in C. chinense breeding programs.