Rice husk is a by-product of rice milling plants. When rice grains are hulled and milled, husks and bran are removed, leaving white, smooth grains. Rice husks are widely available, particularly in countries that produce rice. However, they have not been adequately utilized and frequently cause environmental issues. Rice husks are a complex lignocellulosic material containing mainly cellulose, hemicellulose, lignin, and ash. Utilizing rice husks to produce liquid smoke through the pyrolysis process offers a tremendous added value to the rice industry and will also solve environmental issues. The type of pyrolysis (slow, fast, or flash) and the processing parameters (pretreatments, heating rate, temperature, hot steam residence time, gas flow rate, and biomass particle size) have a significant impact on the yield and characteristics of Rice Husk Liquid Smoke (RHLS). The desired functional properties of liquid smoke heavily influence the choice of pyrolysis type and operational parameters. The lowest RHLS yield is obtained from slow pyrolysis. In terms of density, viscosity, water content, ash content, and acidity, RHLS is relatively high. The use of suitable processing techniques and parameters could enhance RHLS's characteristics. Acids, alcohols, phenols, alkanes, amines, alkynes, aromatics, aldehydes, esters, ketones, alkenes, and others are all present in RHLS. The lignocellulosic materials in rice husk undergo pyrolysis to produce the chemical compounds found in RHLS. The pyrolysis conditions influence their composition in RHLS. RHLS is reported to have some beneficial functional properties, including flavoring, antioxidant, anti-inflammatory, antimicrobial, antidiabetic, and antifeedant. Given its chemical composition and functional properties, RHLS shows significant potential for various applications, such as food flavoring and preservatives, natural pesticides, pharmaceuticals, corrosion inhibitors, and adhesives. The potential of RHLS can be used as information for the development of industries related to the utilization of liquid smoke. Furthermore, many additional potential applications for rice husk liquid smoke still need to be explored.