Field experiment were conducted under south Gujarat Agro Climatic condition on clayey soil at Regional Rice Research Station, Navsari Agricultural University, Vyara, (Gujarat) during kharif 2015 to 2017 with a view to study the effect of spacing and nitrogen levels on yield in aerobic rice”. The treatments consisted of three nitrogen levels viz., 100, 125 and 150 kg N/ha and three row spacing viz., 15 cm, 20 cm and 30 cm row to row. The result revealed that nitrogen levels had non-significant effect on growth parameters and yield of aerobic rice. Crop sown at different row spacing significantly influenced grain and straw yield. Highest grain (4224 kg/ ha) and straw yield (6452 kg/ha) were recorded when crop sown at 15 cm row spacing which remained at par with treatment of 20 cm row spacing. Different levels of nitrogen did not manifest its significant effect on available nitrogen, available phosphorus and available potash in soil after harvest of crop. Different spacing failed to exhibit its significant variation on available nitrogen and available phosphorus in soil after harvest of crop. Significantly higher available potash 285.5 kg/ ha in soil was observed when crop were sown at 30 cm row to row spacing. Economics showed that treatment of 20 cm row spacing accrued higher net returns and BCR (1.91).