With the ever-increasing energy demands, fossil fuels are gradually depleting and eventually, these nonrenewable sources of energy will be exhausted. Hence, there is an urgent need to formulate alternative fuels that are both renewable and sustainable. Biomass is one of the reliable sources of energy because it is replenishable. Rice is the staple food in many countries, particularly in Asia. The number of paddy fields has increased tremendously over the years and is expected to increase in the future in response to the growing world population. This will lead to significant amounts of agricultural wastes annually, particularly rice straw. In some countries, open burning and soil incorporation are used to manage agricultural wastes. Open burning is the preferred method because it is inexpensive. However, this method is highly undesirable because of its detrimental impact on the environment resulting from the release of carbon dioxide and methane gas. Hence, it is important to develop an energy-harvesting method from rice straw for power generation. More studies need to be carried out on the availability and characteristics of rice straw as well as logistic analysis to assess the potential of rice straw for power generation. This paper is focused on reviewing studies pertaining to the characteristics and potential of rice straw for power generation, current rice straw management practices, and logistic analysis in order to develop a suitable energy-harvesting method from rice straw in Malaysia.