Three field experiments were conducted at the experimental Farm of Etay El-Baroud , El-Beheira Governorate, Egypt. These trials included forty eight families sown in F₅, F₆ and F₇ generations at the three successive seasons, 2004/05, 2005/06 and 2006/07, respectively. The objective of this investigation is to compare these families through three generations when with the two commercial varieties, Sakha 1 and Sakha 2 for yield and yield components as well as fiber and oil quality characters. Mean squares due to families were significant for straw, seed weight and their components as well as for technological traits, fiber percentage, fiber fineness and oil percentage in all tested generations. For phenotypic (PCV) and genotypic (GCV) coefficient of variability and broad sense heritability (H%), the slight discrepancy between PCV and GCV for straw weight components (plant height and technical stem length) and also for seed weight components (No. of capsules and 1000-seed weight) with high heritability estimates in each of the three generations under study, indicated the presence of genetic variability among tested families for these characters and that selection in advanced generations would be effective for improving the above-mentioned traits. Five families (No. 46 followed by 27. 43, 44 and No. 20) were superior for both seed and straw yields per fed, four of them (No. 46, 44, 43  and No. 20) were also superior for the two fiber technological characters, fiber percentage and fiber fineness. It is notable that the three families (No.43, 44 an No.46) are derived from the hybrid (S.2419/1 x S.148/6/1), whereas family No.20 and No.27 are belonged to the two hybrids (Giza 7 x S.2419/1) and (Giza 8 x S.2419/1), respectively. Therefore, these families (specially family No. 46) are recommended to be released and become as substitute for the commercial varieties Sakha 1 and Sakha 2 after evaluation in more locations before releasing as new commercial varieties for fiber and oil yields (as dual purpose type). Phenotypic (r_{p < /sub>) and genotypic (rg) correlation coefficients concluded that, straw weight per plant was significantly positively correlated with both of plant height and technical stem length. Seed weight per plant, exhibited positive association with each of capsules number per plant, 1000-seed weight, plant height and technical stem length, indicating that flax yield improvement could be achieved through selection for seed weight and high straw components (plant height and technical stem length). Fiber percentage showed positive association with both of straw weight per plant and fiber fineness, indicating that selection for a genotype characterized by high yielding ability for fiber yield and high fineness is possible.}