Red rice has achieved a lot of visibility due to its greater amounts of bioactive compounds compared to traditional white rice. The increased recognition of red rice by the industry is a consequence of the expansion of its study in the field of research. The red color of its grains is characteristic of the presence of proanthocyanidins, which is associated with health benefits such as reducing the risk of chronic diseases. In addition, red rice is gluten-free and hypoallergenic, which makes it suitable for celiac or gluten-intolerant patients. However, the contents of phytochemicals can vary with the influence of the adaptability of genotypes to the environment, cultivation practices, abiotic stresses, and industrial processing. In this scenario, one of the challenges is to increase the diversity of red rice products while having a minimum impact on the content of bioactive compounds, mainly flavonoids and phenolic acids. In this review, a complete overview of the importance of pigmented red rice is presented, including the effects of different genotypes, the growth environment, and industrial processing on the bioactive compounds, mainly flavonoids and phenolic acids, in red rice, and the health benefits of its products are described. Studies cited in this review article were found by searching through the Web of Science database from 2013 to 2023. After a detailed and up-to-date search, 36 studies were included in this review article.