Lotus infestation of ricefields is a major cause of crop failure and decrease of grain yield in the newly reclaimed cut-off areas around lake Manzala, Egypt. This study provides insights in the allelopathic effect of Nymphaea lotus L. on rice (Oryza sativa cavr. Giza-177). Lotus rhizome extracts were inhibitory to seed germination and seedling growth of rice. The degree of inhibition was dependent on extract type and concentration. Ethanol and water extracts were more inhibitory than chloroform extracts. The phenolic fraction of ethanol extracts showed the highest inhibitory effects. In a target (rice)-neighbour (lotus) pot experiment, rice dry mass and relative growth rate were dependent on its age and on lotus rhizome density, with decreased growth at increased lotus density. Field data on infested and non-infested ricefields demonstrated a decreased leaf area index and yield in infested fields. Identification of the potential allelochemical compounds by gas chromatography/mass spectrometry revealed the presence of allelopathic phenolics in lotus rhizomes.