African marigold (Tagetes erecta L.), a major source of carotenoids, is also grown as a cut flower and a garden flower in addition to being grown for its medicinal values. We studied gene action, combining ability and heterosis, aiming at genetic improvement of T. erecta for enhanced carotenoid content in petals, and report for the first time that heterosis can be exploited for total carotenoids and its commercially important fractions. Total content of carotenoids and lutein appears to be governed by dominance (or non-additive) gene action, while content of xanthophyll esters is governed by both additive and dominance (or non-additive) gene actions. Specific combining ability variance was predominant for all the three traits. General and specific combining abilities and heterosis were highly significant. Heterobeltiosis was also positive. General combining ability (GCA) variances were not significantly correlated to performance per se. There was also no correlation between performance per se of normal petalled pollen parents and the performance of crosses made between male-sterile (female) and male-fertile (pollen) parents. These findings suggest that carotenoid content should not be the only criterion considered in the selection of parental lines. Studies on esterase in seeds and peroxidase in seedlings revealed a relatively high level of polymorphism in esterase with a total of 14 isoforms, whereas peroxidase showed low polymorphism. Similarity indices between different parental combinations, calculated based on seed esterase polymorphism, showed a significant negative correlation (r = -0.479, P = 0.05) with heterosis for carotenoid content. This indicates that the selection of parents with wider variation in their esterase profiles may possibly be exploited for genetic enhancement of carotenoids in T. erecta.