Rice has been the main staple food and important to the economy of Thailand. As the country is becoming more developed toward industrialization, the contribution of agricultural sector including the rice sector becomes less to the GDP. Nevertheless, nearly 40 percent of the population depends on agriculture for their living and 70 per cent of them are in rice sector. As Thailand has sent the goal for Thailand 4.0 using advanced technology and smart farming to release itself from the middle income trap, this paper describes the historical background and current situations of Thai rice economy, and discussing its strategic plans to manage current challenges.