The polychaete Hediste diversicolor is a suitable species for industrial aquaculture; however, cost-effective culture techniques need to be developed for its intensive production. The aim of this study is to evaluate the effects of worm density and substrate height and their interaction, as well as feeding frequency, on the rearing performance of H. diversicolor. Two trials were conducted. In trial 1, the effects of two substrate heights—6 and 12 cm—and two rearing densities—1000 and 4000 individuals m−2—were assessed in terms of worm growth and biomass production. Worm initial wet weight was 48 mg, and specimens were fed with commercial fish feed during a 70-day assay. The results show no interaction between rearing density and substrate height, and confirm density as a key factor in growth; however, a density of 4000 individuals m−2 results in a significant increase in production (final biomass three times higher for the highest rearing density) without affecting survival. In trial 2, the effect of three levels of feeding frequency—seven days a week; three times a week; and once a week—on growth in individuals of three weight classes—small (25–50 mg); medium (100–150 mg); large (250–350 mg)—was evaluated in a 15-day growing assay. Feeding frequency showed a major influence on the smallest size class, with the best growth indicators obtained at the highest feeding frequency. This study shows that Hediste diversicolor can be reared at a high stocking density to obtain a higher biomass production, and that feeding frequency must be considered as an important factor and adapted to the culture phase.