This study was carried out in 2014 and 2015 to investigate the effect of transplanting density on panicle production and to analyze the relationship of panicle production with yield traits in the mid-maturing quality rice cultivar ‘Haiami’ in the mid-plain area of Korea. Number of tillers per square meter increased by reducing planting distance and increasing seedling number per hill. These effects were maintained until maturity and were reflected in the final number of panicles per square meter, although the effect of planting density decreased as rice growth progressed. However, increased panicle number per square meter following dense planting did not improve head rice yield. Panicle number per square meter was negatively associated with spikelet number per panicle and was not correlated with other yield components or head rice yield. Head rice yield was not correlated with head rice percentage but was closely and positively correlated with milled rice yield. Milled rice yield did not increase with grain filling percentage but increased with spikelet number per square meter. Spikelet number per square meter increased with both spikelet number per panicle and panicle number per square meter, although the former had a greater influence. Therefore, we conclude that head rice yield of the ‘Haiami’ cultivar grown in the mid-plain area of Korea is not improved with an increased panicle number following high planting density but it could be improved with high milled rice yield by increasing spikelet number per unit area.