Rice production is essential for global food security and socio-economic development, as it is a staple food for many people. However, low water-use efficiency/water productivity is noticed due to the high water input in the traditional transplanted rice ecosystem with stagnant water. On the other hand, climate change affects the hydrological cycle through precipitation, causing increasing water demand and major threats to the sustainability of rice cultivation and food security for the growing population. A significant need is to find out the balance between water conservation practices and their influence on greenhouse (GHG) emissions, mainly methane. This review gives insight into a comprehensive analysis of sustainable rice production systems that improve water productivity while reducing GHG emissions, a crucial gap in existing research. To overcome this, we evaluate key strategies like aerobic rice, alternate wetting and drying (AWD), direct-seeded rice (DSR), drip-irrigated rice, a system of rice intensification (SRI) and Internet of Things (IoT) based smart irrigation, highlighting the potential water use efficiency and reducing carbon footprints. Notably, we spotlight low methane-emitting rice cultivars and drought resistance right cultivars as promising low-emission rice cultivation solutions. Additionally, this article underscores the adoption of simulation models on water productivity and seasonal GHG emissions in rice. This review provides valuable insight for policymakers and researchers to optimize rice production under changing climatic conditions. This review underscores the need for effective water management practices to enhance food security while reducing environmental impacts.