Rice is a key crop for meeting the global food demand and ensuring food security. However, the crop has been facing great problems to combat the weed problem. Synthetic herbicides pose a severe threat to the long-term viability of agricultural output, agroecosystems, and human health. Allelochemicals, secondary metabolites of allelopathic plants, are a powerful tool for biological and eco-friendly weed management. The dynamics of weed species in various situations are determined by crop allelopathy. Phenolics and momilactones are the most common allelochemicals responsible for herbicidal effects in rice. The dispersion of allelochemicals is influenced not only by crop variety but also by climatic conditions. The most volatile chemicals, such as terpenoids, are usually emitted by crop plants in drought-stricken areas whereas the plants in humid zones release phytotoxins that are hydrophilic in nature, including phenolics, flavonoids, and alkaloids. The allelochemicals can disrupt the biochemical and physiological processes in weeds causing them to die finally. This study insight into the concepts of allelopathy and allelochemicals, types of allelochemicals, techniques of investigating allelopathic potential in rice, modes of action of allelochemicals, pathways of allelochemical production in plants, biosynthesis of allelochemicals in rice, factors influencing the production of allelochemicals in plants, genetical manipulation through breeding to develop allelopathic traits in rice, the significance of rice allelopathy in sustainable agriculture, etc. Understanding these biological phenomena may thus aid in the development of new and novel weed-control tactics while allowing farmers to manage weeds in an environmentally friendly manner.