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The biorefinery approach for the production of fuels and chemicals is gaining more and more attraction in recent years. The major advantages of biorefineries are the generation of multiple products with complete utilization of biomass with zero waste generation. Moreover the process will be economically viable when it targets low volume high value products in addition to high volume low value products like bioethanol. The present review discuss about the potential of rice straw based biorefinery. Since rice is a major staple food for many Asian countries, the utilization of the rice straw residue for fuel and chemicals would be very economical. The review focuses the availability and the potential of this residue for the production of fuel and other high value chemicals.