About 1,165 million metric tons of rice straw is generated every year worldwide, which can be a good source for the circular bioeconomy. In this research paper, the paper-grade pulp from rice straw was converted to dissolving-grade pulp by fractionation in a biorefinery initiative. Rice straw was cooked at an optimum condition of 8% potassium hydroxide (KOH) charge for 120 min at 150°C and produced a pulp yield of 47.2% with a kappa number of 18.5. Subsequently, D0(EP)D1 bleaching was carried out for the produced pulp, and the brightness of the pulp reached to 82.4%. From the black liquor, 16.5% of the lignin and 11.9% of the hemicellulose were isolated for producing biobased products and chemicals, and then the spent liquor was used for soil amendment. The bleached pulp was fractionated in a Bauer McNett fiber classifier. The pulp fibers retained on 16-, 30-, and 50-mesh screens were used as a longer fiber fraction pulp, and pulp fibers retained on 100- and 200-mesh screens were used as a shorter fiber pulp. The longer and shorter fiber fraction pulps were analyzed for cellulose, R10, pentosan, and viscosity. The long fiber fraction pulps were characterized by higher cellulose (88.2% vs. 83.1%) and lower pentosan (11.3% vs. 13.0%) content than the shorter fiber fraction pulps. The longer fiber fraction was further treated with cold KOH to remove residual hemicellulose. The KOH extraction reduced pentosan content in pulp to 6.3% and increased á-cellulose content to 91.3%. The short fiber fraction was converted to monomeric sugars using cellulase enzymes with varying reaction time, temperature, and consistency. The efficiency of cellulase activity was assessed through glucose yield and residual dry weight. A temperature of 45°C, 5.0 pH, 5% consistency, and 6 filter paper units/gram (FPU/g) o.d. pulp resulted in maximum sugar conversion of 85.7%.