This study was conducted to evaluate the drought tolerance of Japonica and Indica rice cultivars during germinating and seedling stages by using the polyethylene glycol (PEG) solution. Each 5 cultivars of Japonica and Indica were cultured from 14 days after seeding(DAS) to 21 DAS using the PEG solution in a moderate water potential (-0.63 MPa). The lengths of radicle and plumule during the germinating stage were inhibitied by the PEG treatment to about 50% and 85%, respectively. The application of PEG to the seedling of two rice types caused to inhibit the plant height and leaf age about 23 % and 10%, respectively. Shoot and root dry weights by PEG treatment were inhibited more severely in Japonica than those in Indica. The difference on delaying of leaf area expansion between both rice types was not found with treatment of PEG, while the leaf color was increased in both Japonica and Indica by 19.9% and 9.2%, respectively. The average photosynthetic ability was inhibited more in Japonica to 36.0% than did Indica to 27.9%. The stomatal conductance was severely affected by PEG treatment, and the degree was varied in both rice types, ranged with 80-85% in Japonica and 29.3-81.6% in Indica. These results indicate there is little relationship between seed germination and seedling growth under the stress of low water potential.