Wood plastic composites (WPCs) made from plant fibres and plastics have gained more and more attention. Studies have been focused on preparation and mechanical performance of WPCs. While mechanism of chemical modification of cereal straw has rarely been reported. In the present work, rice straw was etherified with epichlorohydrin (EPI) and the mechanism of etherification was investigated. Natural rice straw (NRS) was pretreated with NaOH to move most of hemicellulose and lignin. The alkali treated rice straw (ARS), whose dominant component being cellulose, was etherified with EPI at 120 °C for 1-8 h in toluene with NaOH as catalyst. NRS, ARS and etherified rice straw (ERS) were characterized and analyzed by FT-IR, solid CP/MAS C-NMR, elemental analysis and neutral sugar analysis. The etherification reaction was finished within 5 h, and CHO units were introduced into the structure of cellulose, leading to the increase of contents of C and H in ERS. The etherification process of ARS in alkaline medium was divided into three stages, during which two hydroxyl groups were replaced by two ether bonds successively, and a new hydroxyl group was formed in the last step. The number of hydroxyl groups in ERS was reduced, and reduction of hydrophilicity of ERS could be expected.