Xianhui 207, the male parent of widely-used hybrid rice Jinyou 207 (Jin 23A/Xianhui 207), was used as the recipient parent to cross with two resistance varieties, Huahui 20 carrying Xa7 and Xa21 genes and T1c-19 carrying cry1C* gene, as donor parents, to improve the bacterial blight (BB) and borer resistance of Xianhui 207. Two improved lines, designated as CY10038-1 and CY10039-1, carrying the genes of Xa7, Xa21 and cry1C*, were developed by hybridizing, backcrossing and multi-crossing with the method of molecular marker-assisted selection. Crossed with Jin 23A, two hybrids Jin 23A/CY10038-1 and Jin 23A/CY10039-1 were made. The resistances of bacterial blight, leaf folder and stem borer, the expression of CRY1C* protein and main agronomic traits including yield and grain quality were studied for the new improved lines and their derived hybrids. The results showed that two improved lines and their hybrids were resistant to seven Xoo strains, i.e., ZHE173, GD1358, PXO61, PXO99, FuJ, YN24 and HeN11. Though the CRY1C* expression in two hybrids was lower than that in the improved lines, the hybrids were highly resistant to leaf folder and stem borer in field conditions. The testing results of main agronomic traits and grain quality showed that two hybrids were similar to Jinyou 207 except for their higher yield than that of Jinyou 207. Thus, these new improved lines would have a good prospect in future hybrid rice breeding.