The field trial was carried out at the VNMKV, Parbhani, to study the correlation of 13 yield contributing characters and nine grain quality characters with grain yield of aerobic rice genotypes on Vertisols. The experimental materials consist of 50 rice genotypes including three checks and allocated in randomized complete block design in three replications. Correlation analysis of yield contributing characters shows that all the characters under study were significantly and positively correlated with grain yield per plant except, days to 50% flowering, days to maturity and iron chlorosis reaction at both genotypic and phenotypic levels. Whereas, among grain quality characters elongation ratio was found to be positively correlated with grain yield per plant however volume expansion, protein content and amylose content were negatively correlated. Path analysis studies among yield contributing characters indicated that number of effective tillers per planthad maximum positive direct effect followed by number of grains per panicle and 1000 grain weight on grain yield per plant.Almost all the yield contributing characters exerted negative indirect effect on grain yield per plant via iron chlorosis reaction. The grain quality characters elongation ratio, L:B ratio and relative density exerted highest positive direct effect on grain yield per plant, whereas direct effect of elongation index was negative.