Two field experiments were carried out at the Farm of Rice Research and Training Center (RRTC), Sakha, Kafr El-Sheikh, Egypt during 2004 and 2005 season to study the effect of organic and inorganic fertilizers on growth, yield and its attribute, and grain quality characters of Giza 177 and Giza 178 rice varieties.                 Each experiment involved eight treatments which were the combination of straw, compost and urea with different rates. (Control, 164 kg N/ha, 6 tons compost/ha alone and with 82 and 123 kg N/ha, 6 tons rice straw/ha alone and with 82 and 123 kg N/ha). The results could be summarized as follows:                 Application of 164 kg N/ha or 6 tons compost/ha plus 124 kg N/ha gave the highest number of tillers, dry matter yield (g/hill), leaf area index, number of panicles/hill, number of grains per panicle, filled grains percentage, panicle weight, straw yield and grain yield compared to other treatments. Regarding grain quality hulling and milling rice percentage were not affected by organic and inorganic application, while the head rice percentage was affected by them. Also, the results indicated that the use of straw alone or combined with inorganic nitrogen had no significant effect on the studied traits.                 According to the previous results it could be concluded that application of compost plus inorganic fertilizers gave the best results compared with the other treatments. The use of compost either alone or combined with nitrogen was better than that of straw mainly due to the fast decomposition of compost. Recently, compost plays a major role in crop production, science it minimizes the use of chemical fertilizer and decreases environmental pollution.