Rice false smut (RFS) disease, caused by Ustilaginoidea virens, has emerged as a significant threat to rice cultivation in India, exacerbated by climate change and increasing environmental stress. Once considered a minor issue, false smut is now gaining attention due to its growing impact on yield and quality. This article explores into the pathogenecity of U. virens, focusing on its ability to exploit environmental stressors, produce toxic metabolites, and invade rice tissues. Recent advances in molecular biology have provided valuable insights into these mechanisms, enabling the development of targeted control strategies. Innovative management approaches, including the use of biocontrol agents, resistant rice varieties, and integrated disease management (IDM), are being explored to mitigate the disease. Given India’s diverse agro-climatic conditions, localized solutions tailored to specific regions are crucial for effective disease control. This review underscores the urgent need for collaborative efforts in research and policy to combat false smut and safeguard rice production in India.