Broken rice, comprising small and fractured kernels generated during rice milling, is a major byproduct of the rice processing industry. Owing to its lower commercial value compared to whole rice grains, broken rice is often diverted from the human food chain to low-value applications such as animal feed and bioenergy production. However, its compositional similarity to whole rice and favorable functional properties offer significant potential for value addition. This article reviews recent advances in the composition, food applications, protein recovery, fermentation-based valorization, and sustainability aspects of broken rice, while highlighting key challenges and future research directions for its efficient utilization.