The effect of inbreeding on mean and genetic covariance matrix for a quantitative trait in a population with additive and dominance effects is shown. This genetic covariance matrix is a function of five relationship matrices and five genetic parameters describing the population. Elements of the relationship matrices are functions of Gillois (1964) identity coefficients for the four genes at a locus in two individuals. The equivalence of the path coefficient method (Jacquard 1966) and the tabular method (Smith and Mäki-Tanila 1990) to compute the covariance matrix of additive and dominance effects in a population with inbreeding is shown. The tabular method is modified to compute relationship matrices rather than the covariance matrix, which is trait dependent. Finally, approximate and exact Best Linear Unbiased Predictions (BLUP) of additive and dominance effects are compared using simulated data with inbreeding but no directional selection. The trait simulated was affected by 64 unlinked biallelic loci with equal effect and complete dominance. Simulated average inbreeding levels ranged from zero in generation one to 0.35 in generation five. The approximate method only accounted for the effect of inbreeding on mean and additive genetic covariance matrix, whereas the exact accounted for all of the changes in mean and genetic covariance matrix due to inbreeding. Approximate BLUP, which is computable for large populations where exact BLUP is not feasible, yielded unbiased predictions of additive and dominance effects in each generation with only slightly reduced accuracies relative to exact BLUP.