Five rust resistant and four rust susceptible groundnut (Arachis hypogaca L.) genotypes were crossed in all possible combinations to study the nature of combining ability and gene action involved for 13 quantitative traits. Combining ability analysis showed the importance of GCA variance alone for number of primary branches and days to 50 per cent flowering while for the remaining characters, both the GCA and SCA variances were important with predominance of GCA indicating the scope for exploiting the available additive components. The rust resistant Virginia genotypes VG 78 and CS 31 were the best general combiners for yield and yield components while the two Spanish types CO 1 and VRI 1 for carliness, number of mature pods per plant and harvest index and VRI 1 for oil content also. Inter-subspecific hybridisation between the Spanish and Virginia genotypes followed by intermating is advocated to exploit both the additive and non-additive components.