The effect of arsenate with or without paeonol on the growth and metabolism in rice seedlings of Basmati rice was studied. In the test, cv. arsenic was more toxic for root growth, than for shoot growth, where root hairs were less and short, roots were characteristically stubby, brittle and root tips gradually turned brown. Arsenic caused damage to the root epidermal cells and the aerenchymatous cortex. The levels of total chlorophyll, chlorophyll-a, chlorophyll-b and fluorescence intensity were decreased in arsenic treated rice seedlings. Arsenic toxicity affected the activities of different antioxidant scavenging enzymes in the test seedlings. Activities of superoxide dismutase and ascorbic acid oxidase were increased, whereas catalase and catechol peroxidase activities were decreased by arsenic application. In these seedlings, oxidative stress has been observed with arsenic treatments, and the levels of proline and H2O2 have increased. The combined application of paeonol and arsenic showed significant alterations on all parameters tested under the purview of arsenic treatment alone, leading to better growth and metabolism in rice seedlings. Thus, the use of paeonol in arsenic contaminated soil may improve the production of healthy rice plants.