Rice (Oryza sativa L.) is increasingly becoming an important food crop in Ethiopia. However, the average rice productivity in Ethiopia is estimated at 2.8 t ha which is much lower than the world average, 4.6 t ha- 1 due to lack of appropriate and location specific agronomic practices like application of optimum doses of nitrogen fertilizer and uses of optimum seeding rates. Thus, a field experiment was conducted in Fogera district in South Gondar Zone, Northwestern Ethiopia during 2021 main cropping season with the objective of determining optimum dose of N level and seeding rate. The treatments comprised of factorial combinations of four levels of N (134, 184, 234 and 284 kg ha ) and four different seeding rates (60, 80, 100, and 120 kg ha -1 ). The experiment was laid out in RCBD and replicated with three times. All data subjected to analysis of vari ance using the general linear model (GLM) procedures of SAS 9.0 version system (SAS, 2003). Economic analysis was also carried out by following CIMMYT (1988) .The main effects of both, different levels of nitrogen and different rate of seeding, and their interactions showed highly significant effect on total tillers and effective and non- effective tillers, filled grain per panicle, panicle length, phonological parameters, totals spikelet’s, thousands seed weight and grain yield, biological yield and straw yield. Application of 184 kg N ha- 1 level with a seeding rate 100 kg ha -1 gave the maximum grain yield (6,641 kg ha -1 ) and. the maximum number of effective tillers per m 2 (792) was recorded in response to nitrogen applied at 184 kg N ha -1 and 100 kg ha -1 seeding rate followed by (736) tiller obtained from 234 kg N ha -1 and 100 kg ha -1 seed rate. ) The maximum number of filled grains per panicle (95.34) was recorded at 184 kg N ha -1 and 100 kg ha -1 seeding rates. The highest net return of ETB 118,850 with acceptable marginal rate of return (2,313%). Therefore, this treatment combination can be a preliminary recommendation for the study area for better economic and agronomic advantage . However, to reach at conclusive recommendation the experiment has to be repeated across different years