The effects of distillery effluent (effluent:well water at 1:5, 1:10, 1:25, 1:50 or undiluted) as irrigation on the performance of wheat cv. DWR-162 were studied in Karnataka, India, during rabi 1999/2000 and 2000/2001. The plots were irrigated one week before sowing; the crops were provided with 8 irrigations during the growth period. A dilution level of 1:50 recorded a grain yield (52.59 quintal/ha) which was on a par (51.29 quintal/ha) with that of the control (irrigation with well water only). Grain yield was reduced by 7.75, 13.19 and 21.37% at dilution levels of 1:25, 1:10 and 1:5, respectively. Dilution at 1:50 also gave the greatest number of productive tillers (118.40 per row), ear length (10.30 cm), ear weight (3.10 g), number of grains per ear (54.43), 1000-grain weight (40.98 g) and harvest index (0.438). The superior performance of crops under a dilution level of 1:50 was also attributed to moderate plant height (6.76, 57.30 and 83.21 cm at 30, 60 and 90 days after sowing, respectively). Straw yield, which was highest (79.62 quintal/ha) at a dilution level of 1:5, decreased with the increase in dilution. The undiluted distillery effluent adversely affected biomass production, and nutrient (N, P and K) and water uptake. The results suggest the suitability of irrigation with distillery effluent diluted with well water at 1:50 for increasing wheat yield. [1 quintal=100 kg].