Abstract: In this study, kenaf has been retted in the middle paddy rice fields with abundant water source. The results indicate that retting kenaf in the rice fields can not only increase fibre extraction rate,fibre quality,following crop production (about 10-20%) and soil fertility, but also prevent and control the waste water pollution caused by floating water from retting kenaf. It is concluded that this process is the simple and feasible approach which could increase economic, environmental and social benefits simultaneously under present production situation in rural areas.