Selection of desirable phenotypes and characterization of variability in economically important traits are essential for domestication of indigenous fruit trees (IFTs). Currently, participatory tree selection is a widely accepted approach in IFT domestication wherein farmers' knowledge and preferences are included in tree selection processes. In Arunachal Pradesh, India, fruits of Phoebe cooperiana are extensively consumed by people and traded across the state. In this study, we employed a selection index to screen trees for superior fruit traits from a base population of 45 farmer-identified trees of P. cooperiana in Arunachal Pradesh. Based on fruit diameter length ratio, pulp fruit ratio and yield, 19 trees were selected for superior fruit traits. The per cent improvement for 10 fruit and seed traits ranged from 0.16 to 14.56% compared to the base population. Significant variation for all fruit and seed parameters was observed among the 19 trees with coefficient of variation values ranging between 1.92% for fruit diameter and 8.26% for seed weight. There was significant positive association between economic traits including fruit weight with pulp weight, fruit diameter length ratio with fruit weight and pulp thickness with pulp weight. Principal component analysis revealed that variability was largely contributed by fruit weight (0.49), pulp weight (0.46), seed weight (0.45) and fruit diameter (0.42). Cluster analysis grouped phenotypes into seven groups with no clear clustering of individuals from the same area. The study highlights the significance of participatory tree selection approach and the benefits of individual tree selection in capturing wider variation and locating extreme phenotypes in IFT domestication.