Studies on drying of groundnut seeds were conducted at drying air temperatures of 40, 45,50,55 and 60°C with initial moisture contents (MC) of 35,43 and 67 per cent (db), keeping the air flow rate of 4m3 / min and loading weight of 5 kg, using a model drying unit. The seeds dried at different temperature and MC were further subjected for storage of 180 days under the ambient conditions of Bangalore to evaluate the seed quality. The study revealed that the groundnut dried at air temperature of 45°C and 50°C with an initial MC's 67 and 43 per cent (db), respectively could be safely stored for a period of 180 days. Seed dried beyond these temperatures associated with high nitial MC drastically reduced the seed germination.