At present, development and production of advanced green energy sources are highly demanded, and this may offer a clean and sustainable environment to our modern society. In this reference, biogas is emerging as a promising green energy source and seems to have high potential to replace fossil-fuel based energy sources in the coming future. Further, lignocellulosic biomass (LCB) based biogas production technology has been found to be highly promising owing to several advantages associated therewith. Rich inorganic content, renewable nature, huge availability and low-cost are the key beneficial factors of LCB-based feedstock l to produce biogas. Among the varieties of LCB, paddy straw is one of the most demanding feedstocks and is highly rich in organic compounds that are imperative to producing biogas. Nevertheless, it is noticed that paddy straw as a waste material is usually disposed-off by direct burning, whereas it exhibits low natural digestibility due to the presence of high lignin and silica content which causes severe environmental pollution. On the other hand, paddy straw can be a potential feedstock to produce biogas through anaerobic digestion. Therefore, based on the current ongoing research studies worldwide, this review evaluates the advancements made in the AD process. Meanwhile, existing limitations and future recommendations to improve the yield and productivity of the biogas using paddy straw have been discussed. The emphasis has also been given to various operational parameters developments, related shortcomings, and strategies to improve biogas production at pilot scale.