Water shortage caused reduction for all the estimated morphological and productivity traits for wheat crop. So, seven bread wheat genotypes consists of three promising lines and four commercial cultivars, which differed considerably in their characters were used as parents with their crosses at the Experimental Farm, Faculty of agriculture, Kafrelsheikh University, to estimate combining ability and nature of gene action under normal and water stress conditions. The results indicated that water deficit decreased the means of all traits for parents and their crosses. The GCA variance was higher than the SCA for all traits under both conditions, except spike length and no. of kernel/spike under both conditions and 1000kerenel weight under normal condition, indicating that additive gene effects were more important than non-additive in the expression of these traits. The parents Misr3 and line136 showed the best desirable GCA effects for earliness, whereas the parents Sakha95 and Line115 were the best general combiners for grain yield/plant and most of its components under both conditions. The two crosses Gemmiza11× Line117 and Line117 ×Line136 were identified as promising specific combiners for earliness, while the cross Misr3× Line136 for improving yielding ability under both conditions. Both additive and dominance genetic components are important in the inheritance of the studied traits. However, the values of (D) were higher than (H1) for all the studied traits, except flag leaf area under drought and Chlorophyll content (SPAD) under both conditions, revealing that the additive gene effects played the major role in the inheritance of these traits