The response of nitrogen and potassium levels on flue cured virginia (FCV) tobacco genotype KST-28 was studied during 2007 and 2008 at Navile farm, Shimoga. Results revealed that plots receiving 60 kg N/ha with 120 kg K2O/ha recorded highest cured leaf yield (1251 kg/ha) and top grade equivalent (TGE) (806 kg/ha). Application of 60 kg N/ha recorded 1197 kg/ ha cured leaves with top grade equivalent of 766 kg/ha, while application of 120 kg K2O /ha recorded 1172 kg/ha cured leaves with 741 kg/ha top grade equivalent. Response to the N and K levels varied mainly due to profound influence of sunshine hours and rainfall on leaching of applied nutrients. However, there was no significant variation in leaf chemistry at different N & K levels. But, all the leaf quality constituents viz., nicotine, reducing sugar and chloride were within the acceptable limits. Economic analysis of the study revealed that highest additional yield (199 kg/ha and income (`19900/ha) was realized in treatment 60 kg N/ha with 120 kg K2O /ha. But application of 60 kg N/ha with 80 kg K2O /ha was found economically viable, with additional income of `15,700/ha resulting in an additional benefit cost ratio of 13.08.