The present study was undertaken to determine inter-relationship between 16 yield and its component characters and their direct and indirect effects on grain yield in RILs of Basmati derivatives. The study evaluated 31 RILs of Basmati derivatives, along with a check variety, under New Alluvial Zone of West Bengal, India, during kharif 2011. Correlation studies revealed that grain yield per plant was positive and significantly correlated with fertility (%) and panicle weight. Therefore, these two characters should be considered during selection of rice genotypes. Path coefficient analysis revealed that eight characters viz., panicle numbers per plant, panicle length, panicle weight, secondary branches per panicle, chaffy number per panicle, fertility (%), grain L/B ratio and kernel length had positive direct effect on grain yield. Yield correlations for panicle weight and fertility (%) were significantly positive and had high positive direct effect, therefore, direct selection against these traits would be effective for yield improvement in rice.