Investigation of inheritance, mode of gene action and determination of effective breeding strategy for improvement of physiological and morpho-physiological traits specifically in drought stress conditions is very important. To determine the inheritance pattern and genetic parameters of quantitative characters in bread wheat (Triticum aestivum), P₁, P₂, BC₁, BC₂, F₁, F₂ generations derived from crosses between Bezostaya×Bolani and Bezostaya×518 Line were evaluated under normal and limited water conditions using a complete Randomized Block design with four replications. Five traits including harvest index, grain yield, 100 grains weight, and peduncle and spike length were measured. Broad sense heritability means in normal water condition ranged from 0.22 to 0.83 ranged from 0.19 to 0.95 in limited water condition, while mean narrow sense heritability ranged from 0.17 to 0.71 and from 0.07 to 0.71 for normal and limited conditions, respectively. The results obtained from analysis of variance indicated that mean squares in generations were statistically significant for most of the traits so generation means analysis was performed for these traits.  In Bezostaya×Bolani cross dominant gene action were mostly observed while in the Bezostaya×518 additive effects were seen, suggesting the application of early generation selection in first cross and the application of later generation selection in the second one. The genetic control of environmental conditions was similar and water stress did not alter genetic control.