Improving physiological N-use efficiency (PE) in rice must be based on an understanding of rice responses to nitrogen management. Field experiments were conducted to investigate the effects of nitrogen management on PE in relation to accumulation and redistribution of dry matter and nitrogen in three rice cultivars, Baguixiang, Liangyoupeijiu and Jinyou 253. The rice plants were grown in spring and summer seasons in 2002 with three N rates of 0, 99 and 157 kg ha −1 and two panicle nitrogen fractions (PNF) of 1/3 and 2/3. Grain yield, dry weights and nitrogen contents of plants were measured at heading and maturity, respectively. Grain yield exhibited highly significant differences among cultivars and among N rates, but no significant difference between two PNFs. Increasing N rates increased pre- and post-heading and total dry matter accumulation in cultivars except Baguixiang at N rate of 157 kg ha −1 in the first season and increased pre-heading and total nitrogen accumulation in all three cultivars. In contrast, post-heading N accumulation varied markedly with cultivars, N rates and growing seasons. High PNF increased pre-heading and total dry matter accumulation in Jinyou 253 and Liangyoupeijiu, and post-heading dry matter accumulation in the three cultivars, while reduced pre-heading and total dry matter accumulation in Baguixiang. High PNF increased pre-heading and total nitrogen accumulation, and reduced post-heading nitrogen accumulation for all three cultivars. As a result, increasing N rate and PNF reduced pre-heading N-use efficiency, post-heading N-redistribution efficiency, physiological N-use efficiency for grain (PE-grain), and physiological N-use efficiency for biomass (PE-biomass). It can be concluded that PE of three cultivars showed similar responses to N rates and PNFs although accumulation and redistribution of dry matter and nitrogen indicated considerable differential responses to N management. In addition, improvement in PE should focus on increasing pre-heading nitrogen accumulation, post-heading dry matter accumulation and post-heading nitrogen redistribution in rice.