AbstractFalse smut is a disease of rice inflorescence. The existing systems of disease severity assessment for rice false smut disease are not very sensitive as the ball quality and also the impact of false smut on filled grain number and grain‐filling were not under consideration. Here, a precise assessment method to evaluate the severity of the disease was developed. The ‘yield representative’ (YR) based on ‘mean floret wt.’ and ‘filled grain %’ was simulated for the precise disease severity assessment of rice false smut disease. The single floret weight envisages major yield components irrespective of the type of panicle. Correlation between YR and major yield attributes was studied, and it was observed that YR had significant correlation with ‘filled grain %’ (0.77–0.95) and ‘single spikelet weight’ (0.88–0.98). Significant negative correlation of YR was observed with the chaff percentage, false smut ball number and ball weight. This YR‐based methodology was utilized to assess the disease severity in nine rice cultivars. The disease severity in those nine cultivars was evaluated by the already existing methodologies also. The disease severity measured by the present technique was compared with the disease severity assessed by the old methodologies. The procedure adapted here for disease severity measurement was found to be more informative and useful. It was observed that in case of mild infection, the false smut was enhancing yield attributes. The high‐yielding rice varieties Savitri and Gayatri were found to be tolerant to false smut and may be used as resistant donors.