The main question connected with developing wheat cultivars adapted to low nitrogen (N) is whether separate breeding programs for low and high input conditions are necessary. Nineteen wheat cultivars were grown over three years in Croatia in a total of eight environments at high N and low N in order to determine the effect of two N levels on means, variances and heritability of grain yield and bread-making quality and to assess the relative efficiency of indirect selection under high N in improving trait means under low N. Means of grain yield and grain protein content decreased under low N 10 and 13 %, respectively compared to the high N, whereas higher reductions of means due to lower fertilization were observed for grain N yield (21 %), wet gluten content (20 %), Zeleny sedimentation value (27 %) and for most rheological parameters, whose mean values were reduced from 20 % to as much as 57 %. Heritabilities for grain yield and grain N yield at high N were 0.82 and 0.76, respectively, and 0.77 and 0.43 at low N. Heritability for dough development time, stability and resistance also tended to be higher at high N than at low N due to a decrease in genetic variance and an increase in error variance at low N. The genetic correlation coefficients between high and low N were higher than 0.90 and the efficiency of indirect selection under high N for performance under low N was near 1.0 for grain yield and for most bread-making quality traits.