Growth behaviour and yield performance of Bt cotton hybrids under sub-optimal rainfall situation is of practical significance, because more than 60% of the cotton area is under rainfed condition in India. A field trial conducted in a sandy clay loam soil during the seasons 2006-2007, 2007-2008, and 2008-2009 to study the growth behaviour and yield performance under scanty rainfall situation revealed that growth in both Bt and non-Bt cotton hybrids significantly differed under these parameters. The crop experienced moisture stress at the early stages of growth and again during boll development phase in 2006-2007 and 2008-2009. However, Bt hybrids (1691kgha(-1)) produced higher seed cotton yield than non-Bt hybrids (1092kgha(-1)), while the controlled variety (LRA 5166) performed the average of these two (1399kgha(-1)). Similar trend was evident in respect of bolls per plant (at 90 DAP) and the final harvested bolls in both Bt and non-Bt cotton. Because of Bt gene, the early formed bolls were protected from the boll worms which led to less damage and higher yield with Bt hybrids. Amongst the hybrids, RCHB 708 Bt (1917kgha(-1)) performed better over the others.