Experiments were conducted at three locations on the sandy loam soils of West coast of Uttara Kannada district in rice fallows under receding soil moisture conditions during rabi/summer seasons of 1983-84, 1984-85 and 1985-86 to know the effect of application of gypsum on groundnut yield and quality of cv. Dh 3-30. During 1983-84, the differences in pod yield of groundnut due to varying levels of gypsum application were not significant. However, over the locations, the maximum pod yield (2360 kg/ha) was recorded in the treat­ment receiving 500 kg gypsum/ha at pegging stage which was significantly superior to all other treatments, except the treatment receiving 250 kg gypsum/ha at sowing + 250 kg gypsum/ ha at pegging (2253 kg/ha) and the treatment receiving 1000 kg gypsum/ha at pegging (2200/kg/ha)