Analysis of F1, reciprocal backcross, F2, and F3, data showed that dwarfism in the high‐yielding, nitrogen responsive Taiwanese indica variety, ‘Taichung Native 1,’ is controlled primarily by a single recessive gene. Minor gene action, confirmed from F3, lines, allows flexibility in selecting a range of short‐statured types. Correlation studies with maturity and tiller number and field observation with several traits of primary interest have shown no association with height and, hence, no barrier to free recombination. The dwarf gene shows no association with floret sterility, incomplete panicle exsertion, or abnormal plant and grain development in the parent dwarf or its progenies. Large numbers of fixed lines, carrying the dwarf gene in distinct genetic backgrounds, have been isolated and tested. All results indicate a major advance in the development of short‐statured, lodging resistant, nitrogen responsive, and productive tropical varieties.