Estimation of genetic diversity, combining ability and heterosis of maize inbred lines for breeding aims are very important and would determine breeding strategies. In order to combining ability estimation of Iranian corn inbred lines using diallel method, 14 Corn inbred lines cross according diallel scheme. Parents and their hybrids which contain 105 different genotypes evaluated at Seed and Plant Improvement Institute, Karaj, using Randomized Complete Block design with three replications in 2007. Results indicating that Significant (p<0.01) differences were observed among the genotypes for all the studied traits, therefore Griffing’s method 2, model 1 was chosen for subsequent diallel analysis. Number kernel per row, grain yield and ear length had the highest average heterosis. Results indicated that for number of kernel row per ear, 100 seed weight, cob percent and kernel moisture percent additive gene effects were more important than the non additive ones, but for grain yield, plant height, ear height, ear diameter, number of kernel per row and number of kernel per ear non additive gene effects were more important than the additive ones. For ear length and kernel weight per ear, importance of additive and non additive gene effects was the same. Among parents, the K3615/2 and K166B lines have the highest grain yield (9.07 and 9.06 respectively). From hybrids, K3653/2 × K18, K18 × K166B and K3615/2 × K3653/2 have the highest grain yield (13.40, 13.23 and 12.65 ton/ha respectively). The best general combinator for yield was lines K166B, K3615/2 and K3653/2. The highest specific combining ability and mid-parent heterosis for yield was observed in K18 × K3653/2 and A679 × K3544/1 crosses.