A field experiment was conducted during 1985-86 and 1986-87 on silty, clay-loam soil to study the response of rainfed wheat (Triticum aestivum L. emend. Fiori & Paol.) to nitrogen. Three wheat varieties ('VL 421', 'HS 86' and 'HD 2009') were tested for their relative performance under 4 levels of N (0, 40, 80 and 120 kg/ha). 'VL 421' and 'HS 86' were superior to 'HD 2009' for grain and straw yields. Grain and straw yields were significantly increased with the application of N up to 80 kg/ha. The economic optimum level of N was worked out to be 117.3 kg/ha for wheat under temperate conditions of Kashmir.