Rice residue management in India presents a significant environmental, economic, and agricultural challenge. Open-field burning, the predominant disposal method, releases harmful pollutants such as particulate matter (PM2.5 and PM10), carbon monoxide (CO), methane (CH₄), and nitrogen oxides (NOₓ), contributing to severe air pollution and soil degradation. This practice not only deteriorates air quality and public health but also depletes soil nutrients, increasing reliance on chemical fertilizers. This chapter explores sustainable in situ and ex situ rice residue management practices. In situ approaches, including the use of the Happy Seeder, zero-till drilling, and straw incorporation, enhance soil fertility while reducing emissions. Ex situ methods, baling and using it for bioenergy production, industrial applications, and mushroom cultivation, offer economic opportunities by converting rice straw into valuable resources. The role of government policies, technological interventions, and financial incentives in promoting sustainable alternatives is also discussed. Despite available solutions, challenges such as high machinery costs, logistical constraints, and limited farmer awareness hinder large-scale adoption. Addressing these barriers requires a multi-stakeholder approach involving policymakers, researchers, and farmers. By integrating policy support, financial incentives, and advancements in biomass processing technologies, Northern India can transition toward a sustainable, eco-friendly agricultural system that mitigates environmental harm while enhancing soil health and farmer livelihoods.