The impetus to predicting future biomass consumption focuses on sustainable energy, which concerns the non-renewable nature of fossil fuels and the environmental challenges associated with fossil fuel burning. However, the production of rice residue in the form of rice husk (RH) and rice straw (RS) has brought an array of benefits, including its utilization as biofuel to augment or replace fossil fuel. Rice residue characterization, valorization, and techno-economic analysis require a comprehensive review to maximize its inherent energy conversion potential. Therefore, the focus of this review is on the assessment of rice residue characterization, valorization approaches, pre-treatment limitations, and techno�economic analyses that yield a better biofuel to adapt to current and future energy demand. The pre-treatment methods are also discussed through torrefaction,briquetting, pelletization and hydrothermal carbonization. The review also covers the limitations of rice residue utilization, as well as the phase structure of thermochemical and biochemical processes. The paper concludes that rice residue is a preferable sustainable biomass option for both economic and environmental growth. © 2022 by the authors.