Rice has long been the most important food crop cultivated in Laos, and still account for more than 80% of the area under cultivation within the country. Laos is recognized as one of the countries with the highest per capita consumption of rice in the world. In 2012, total rice production in Laos was more than 3.4 million tons which is a remarkable improvement to make a country self-sufficient in rice production. Total production of rice has increased significantly in the past couple of decades with most of the increment in yield occurring in the rainfed lowland (season rice) where production has doubled from 1,502,000 tons in 1999 to 3,489,210 tons in 2012. Further improvement in rice production will depend on higher levels of inputs and continued alleviation of major production... constraints. The system of rice production will become less important as alternative, more sustainable technologies and better government policies are implemented. This paper summarizes the major production constraints in Laos‟s rice production environments; rainfed lowland (season rice), dry season irrigation and rainfed upland. Major production constraints identified in the rice production system in Laos include unstable temperature, droughts and floods, poor soil fertility, disease and pest infestation. Flood damage is mostly regarded as the major production constraints than drought. Government proposed policy recommendation seeks to adapt the current policy mix to meet socioeconomic challenges in the rice sector by facilitating trade of the products produced both internally and beyond the boundaries of the country. Also strengthen the rice seed and food reserve, improve the efficiency and effectiveness of public investment and finally strengthen the rice seed sector.