The leaf midrib system is essential for plant growth and development, facilitating nutrient transport, providing structural support, enabling gas exchange, and enhancing resilience to environmental stresses. However, the molecular mechanism regulating leaf midrib development is still unclear.In this study, we reported a rice solid midrib 1 (sm1) mutant, exhibiting solid leaf aerenchyma and abaxial rolling leaves due to abnormal development of parenchyma and bulliform cells. Map-based cloning revealed that SM1 encodes a litter zipper protein (ZPR). SM1 was mainly expressed in the sheaths and basal midrib and was associated with the nucleus. Further experiments indicated that SM1 can interact with OSHB1, preventing the formation of OSHB:OSHB dimers and subsequently repressing the expression of OSH1 involved in the regulation and maintenance of apical stem meristem formation. The sm1 mutant reduced long-distance oxygen transport ability from shoot to root. The impaired oxygen transport in the sm1 mutant may have contributed to the increase in methanogens and elevated methane emissions. Collectively, our findings revealed that the SM1-OSHB1-OSH1 modules regulate leaf aerenchyma development in rice. These modules not only enhance our understanding of the molecular mechanism of rice leaf aerenchyma development but also offer insights for reducing methane emissions through genetic modification.