Rice seedlings density per hill and optimal nitrogen fertilization exercises a strong influence on rice growth and grain yield due to competitive effects both on the vegetative and reproductive development. Present study was conducted to explore the possible role of nitrogen fertilizer and seedlings density on rice kernel yield and yield contributing factors. Three nitrogen (N) rates viz. 75, 100 and 125 kg ha-1 and four seedling densities (1, 2, 3 and 4 seedlings hill-1) were tested in the study. Panicle length, number of branches per panicle and kernels per panicle remained unaffected at varying levels of N and rice seedlings per hill. Two, 3 and 4 seedlings per hill along with 100 and 125 kg N ha-1 resulted in maximum rice kernel yield and harvest index due to enhanced number of panicle bearing tillers and 1000-kernel weight. While application of N at 75 kg ha-1 along with one seedling per hill revealed the poorest results with respect to 1000-kernel weight, panicle bearing tillers per hill and the kernel yield of rice. In crux, two seedlings hill-1 at 100 kg N ha-1 proved to be the best combination for maximizing the rice yield in the Faisalabad area of Pakistan.