Heterosis in basmati rice was studied for eight traits such as number of effective tillers per plant, panicle length (cm), number of grains per panicle, 1000-grain weight (g), grain yield per plant (g), alkali digestion value (%), gel consistency (%) and amylose content (%) in seven crosses among eight basmati/basmati type parental lines through generation mean analysis. The analysis of variance indicated highly significant differences among genotypes and hybrids for all the traits. The magnitude of heterosis varied from cross to cross for all the traits studied and all the crosses exhibited significant inbreeding depression in F generation. High heterotic effects were observed for all the 2 traits studied. Heterobeltiosis for grain yield per plant was mainly due to high heterotic response observed for number of effective tillers per plant, panicle length, number of grains per panicle and 1000-grain weight. The quality traits like alkali digestion value, gel consistency and amylose content were in desirable range for basmati rice.