To investigate gene action and combining ability in some traits such as grain yield, number of fertile tillers per plant, number of grains per panicle, growth period, plant height, length of panicle, length of flag leaf, length and width of grain in three lines and three cultivars of rice, a 6×6 parent diallel cross was designed in 2002. During the following year, parental lines as well as progenies were sown in a randomized complete design with three replications in the Rice Research Institute of Iran, Rasht. Analysis of variance revealed significant differences between genotypes for all the studied traits. Diallel analysis was conducted using the second Griffing method. The effects of general and specific combining abilities were highly significant for all the traits. The mean square ratio of GCA/ SCA was significant for the number of fertile tillers, length of flag leaf, length and width of grain, indicating that the majority of the genetic variance in these traits were due to additive gene action. The heritabilities of these traits were 53%, 52%, 65% and 68%, respectively, revealing that the success of response to selection would be estimated as high. However, for grain yield, number of grains per panicle, growth period, plant height and length of panicle, non additive gene effects played the major role. Graphical analysis of results for characteristics such as number of fertile tillers, length of flag leaf, length and width of grain exhibited an over dominance.