Field experiments were conducted for two years to optimize the suitable raised bed size and irrigation interval for the aerobic rice production system. The treatments consisted of three bed widths and three irrigation intervals daily, once in two days and once in three days). The results showed that aerobic rice in furrow irrigated raised bed (FIRB) of 1.0 m width and 30 cm furrow and schedule the irrigation once in two days gave higher grain and straw yield. Water use efficiency was also higher with this system. So, we can save water along with enhanced yield. Due to the higher yields obtained under raising of aerobic rice under FIRB which accommodated four rows of rice in 1.0 m width of raised bed and irrigating the furrow once in two days gave higher net income and B: C ratio. Hence, for getting better yield and economics of aerobic rice, FIRB with a bed width of 1.0 m and irrigating the furrow once in two days was optimum under irrigated condition.