In this experiment, Hybrid rice Jingyou127 was used as material, two irrigation regimes of conventional irrigation (CI) and drought stress during tillering period (DSTP), two nitrogen (N) levels of medium N rate (120 kg/hm2) and high N rate (180 kg/hm2), and three hill densities of low hill density (12 hill per 1 m2, LH) and medium hill density (16.5 hill per 1 m2, MH) and high hill density (22.5 hill per 1 m2, HH) were designed, to investigate how nitrogen rates and hill density affect grain yield and quality of hybrid rice under drought stress during tillering period. The result showed that there was no significant difference in grain yield between CI (10.72 t/hm2) and DSTP (11.01 t/hm2) in 2014, whereas the difference (6.2%) between DSTP (9.84 t/hm2) and CI (10.50 t/hm2) was significant in 2015, the decrease of grain yield of DSTP was due to the decrease of effective ears of grain number per panicle and the weight of dry matter. Grain yield of DSTP increased with N rate increasing, while grain yield of CI decreased with N rate increasing. Grain yield increased with hill density increasing, irrespective of CI or DSTP regime, that was due to the increase of effective ears and the weight of dry matter. Compared with CI, DSTP was not only significantly lower in rate of chalky grains and degree of chalkiness by 32.0% to 46.5% and 20.0% to 34.8%, respectively, but also had similar or higher quality of milling, cooking and eating. Our results suggest that increasing N rate and hill density can obviously decrease yield loss resulted from drought stress during tillering period. The N application rate of 180 kg/hm2 with hill density of 22.5 hill per 1 m2 are the optimal choice in the rice production area where the drought occur frequently in tillering period.