An experiment was conducted in rice to study the heterosis for drought tolerance and grain yield in 24 hybrids developed from six landraces viz., Kallurundaikar, Kuliadichan, Kuruvaikalangiam, Mattaikar, Nootripathu and Vellaichithiraikar used as lines and four high yielding varieties viz., PMK 3, MDU 5, ASD 16 and ADT 36 used as testers for physio-morphological traits by Line x tester analysis. The experimental results revealed that the hybrids viz., Nootripathu / MDU 5, which had significant standard heterosis for eight characters namely days to 50% flowering, plant height, productive tillers, root length, root dry weight, root : shoot ratio, harvest index and grain yield per plant, Nootripathu / PMK 3 exhibited significant standard heterosis for seven characters namely plant height, root length, root dry weight, root : shoot ratio, 100 grain weight, harvest index, and grain yield per plant were found to be superior hybrids over the standard check variety PMK 3. High proline content which is an index for drought tolerance was recorded in hybrid Kuruvaikalangiam / ADT 36 (11.94%) exhibited significant standard heterosis which is found to be drought tolerant among the hybrids.