A field investigation on response of rice varieties to different establishment methods under system of aerobic rice production was carried out at Orissa University of Agriculture and Technology, Bhubaneswar during wet season of 2012. Among the varieties, aerobic rice Pyari, proved superior with higher yield of grain and straw, and net return compared to other two varieties. With regards to methods of establishment, the yield of grain and straw and net returns were higher under aerobic transplanting with crop geometry of 20 cm x 20 cm. It also recorded higher values of yield attributing characters, leaf area index, nutrient uptake and field water use efficiency.