The investigation was carried out during 2009-2010 in the AICRIP aerobic experimental blocks of Zonal Agricultural Research Station, VC Farm, Mandya, to estimate first degree statistics based gene effects and to predict and validate the frequencies of transgressive segregants in F2 population in the cross 'IR-64 × IET-16348'. From the generation mean analysis it was evident that the major component of genetic variation was due to additive × additive gene action for the expression of filled spikelets panicle-1, 1000-grain weight, straw yield panicle-1 and harvest index; dominance and dominance × dominance type of gene interaction for the expression of productive tillers plant-1, grain yield plant-1, days to flowering, plant height, panicle length, SLA and ?13C. Duplicate epistasis played an important role in the inheritance of all most all characters studied except for filled spikelets panicle-1 and grain yield plant-1 where complementary epistasis was important. In an attempt to predict and validate the frequencies of transgressive segregants, the predicted and observed probability of transgressive segregants was comparable when predictions were based on means and variances of the parents, F1 and F2 populations.