Rice cultivar zhonghua11 (Oryza sativa L. ssp. japonica) plants with decreased sedoheptulose-1, 7-bisphosphatase (SBPase) were obtained by transformation with the rice SBPase antisense gene under the control of the maize ubiquitin promoter. The transgenic and wild-type plants were grown at different nitrogen levels (0.1, 1, or 10 mM $NH_4NO_3$). Growth rates of the seedlings were measured by the changes in dry weight, and the photosynthetic carbon reduction activities and the potential efficiency of photosystem II were measured by $CO_2$ assimilation and $F_v/F_m$, respectively. At low N, there are strong effects on growth and photosynthesis when SBPase was reduced by genetic manipulation. Decreased SBPase activity led to a decrease in the amount of starch accumulated in the leaves at all N levels and the decrease was much more prominent in low N than that in high N, but the starch allocation between shoot and root was unaltered. The analysis of chlorophyll fluorescence and SBPase activity indicated that the decrease of growth and photosynthesis at different N levels were not related to the function of PSII but to the activity of SBPase. Western blot analysis showed the content of SBPase in thylakoid membranes was much more than in the stroma fractions in transgenic plants at low N. Results suggested that low N in addition to a 34% decrease in SBPase activity is sufficient to diminish photosynthesis and limit biomass production. Decreased SBPase activity may reduce the N use efficiency of photosynthesis and growth and alter biomass allocation.