High-spin states in 163Yb have been studied by the 149Sm( 18O, 4n) 163Yb reaction with 84 MeV 18O ions from the NBI tandem accelerator. Gamma-gamma coincidence data were accumulated with an array of five Compton-suppressed Ge(Li) detectors resulting in an extension of our knowledge of high spin members of familiar rotational bands as well as of weakly populated side bands. A γγ time coincidence experiment, conversion electrons and angular distribution measurements were performed. Four side bands are observed besides the yrast cascade, which is followed up to its 49 2 + member. The yrast band of the 163Yb nucleus has been interpreted, following the systematics in this region of neutron deficient rare-earth nuclei, as the favoured member of a decoupled i 3 2 neutron band. The negative-parity band ( −, +) 1 based on the 3 2 −[521] state was reestablished. The other signature of this band is the newly introduced band ( −, − ) 1. The signature splitting in the negative-parity band is observed to be small; however, for large &z.xh;ω, band ( −, − ) 1 lies lower in energy than band ( −, +) 1; which is a unique observation in this mass region. The quasiparticle routhians and alignments obtained from these data are compared with results of cranked shell-model calculations and similar data for the heavier and lighter Yb nuclei. The rotational effects on M1 transitions connecting unfavoured members of the band, based on the i 13 2 orbital, with the favoured members are demonstrated.