Genotype-environment interaction poses an outmost barrier to the breeders in the process of development of improves rice varieties. Understanding the causes and extent of Genotype-environment interaction is highly useful to frame breeding objectives, identifying ideal test locations, and formulating varietal release recommendations. The objectives of this study were to: (i) know the effect of environment on gene action, (ii) assess yield stability across environment, (iii) know the ideal environment to discriminate the F3 population and (iv) assess ideal genotype to discriminate the environment. Thus, 120 rice families, 4 parents and local check were evaluated on 2 saline environments. Collected data were analyzed using SAS software version 9.2 and Genstat 18 th. Non significant effect of environment on gene action was noticed for all the traits, tiller excepted. The genotype by environment interaction was highly significant implying differential performance of families at different locations. However, there was crossover G * E interaction, suggesting that different winners can be evaluated in different environments.