Rice is a major global staple crop, but rising temperatures and freshwater shortages have made drought one of the most severe abiotic stresses affecting agriculture. Additionally, rice blast disease and brown planthopper infestations significantly impact yields. Therefore, developing water-saving, drought-resistant, high-yielding, and disease-resistant rice varieties is critical for sustainable rice production. The new water-saving and drought-resistant (WDR) rice ‘Huhan 1516’, bred using marker-assisted selection (MAS) and marker-assisted backcrossing (MABC) techniques, addresses these challenges. This variety is highly adaptable to drought-prone and water-scarce regions such as the Yangtze and Huai River basins. With its high yield, drought tolerance, and broad-spectrum resistance to rice blast (conferred by the Pi2 gene) and brown planthopper (BPH), ‘Huhan 1516’ is suitable for various farming systems and environments. Field trials show that this variety outperforms control varieties by 2.2% in yield and exhibits moderate resistance to both rice blast and brown planthopper. ‘Huhan 1516’ has been recognized as a new water-saving and drought-resistant rice variety by the state, and as a released cultivar, it has great potential for market promotion and application.