Rice straw is a low-density crop residue. It is produced in huge quantities every year across the country. Therefore, the management of rice residue has become a problem for farmers. Farmers have to vacant the field as early as possible for sowing of the next crop. Hence, they go for the burning of crop residue and now it has become the common practice but burning can result in up to 80% loss of tissue nitrogen by volatilization besides a significant source of air pollution. Therefore, proper management of rice straw has become a national issue. Scientists have developed some strategies for the ex-situ utilization of rice straw. For the production of mushrooms, compost, biochar, biogas, and bioethanol rice straw could be used efficiently. The problem of burning and air pollution could be solved easily by adopting these techniques without affecting the environment.