Magnesium oxide nanoparticles (MgO NPs) have been attracted by the scientific community for their combating action against heavy metal stress in plants. However, their role towards the mitigation of arsenic (As) induced toxicity is still obscure. In the present study, MgO NPs were synthesized through the green route and assessed their efficacy towards the reduction of As accumulation and phytotoxicity in As-stressed rice cultivar MTU-1010 under laboratory conditions. Initially, rice seedlings were grown under separate and combined applications of As (10mg/L) and MgO NPs (0, 10, 50, and 100mg/L) and further analyzed plant growth attributes and As accumulation in rice seedlings. Characterization of biosynthesized MgO NPs by UV-Vis spectrophotometer, transmission electron microscopy (TEM), scanning electron microscopy with energy-dispersive X-ray analysis (SEM-EDX), X-ray diffraction (XRD) and Fourier transform infrared spectroscopy (FTIR) analysis showed the cubic in shape, and crystalline nature (73.10%) with average size ranges from 17-23nm. The growth experiment showed a significant (p < 0.05) increase in seed germination, seedling growth, photosynthetic and other pigments content, and biomass accumulation in rice seedlings under the combined application of As (10mg/L) and MgO NPs (50mg/L) as compared to only As (10mg/L) treatment. Additionally, As exposure resulted in declined primary metabolites such as soluble sugars and protein. However, the application of MgO NPs exhibited the alleviation of As toxicity through significant (p < 0.05) reduction of As accumulation by 34 and 53% in roots and 44 and 62% in shoots of rice seedlings under 50 and 100mg/L MgO NPs supplementations, respectively and restored the accumulation of the primary metabolites. Furthermore, MgO NPs demonstrated the ability to scavenge reactive oxygen species (ROS) like hydrogen peroxide (H2O2) and superoxide anion (O2•-), through significant (p < 0.05) promotion of non-enzymatic (carotenoid, anthocyanin, flavonoid, and proline) and enzymatic (CAT, POD, and SOD) antioxidant defence under As stress. These findings highlighted the potential of green synthesized MgO NPs towards the mitigation of As contamination in rice plants. However, future study is necessary to unfold the actual mechanisms responsible for the protective effects of MgO NPs and to screen out the optimal dose to be used to formulate a potent nanofertilizer for sustainable rice production in metal-contaminated soils.