The ORANGE (OR) gene has been reported to regulate chromoplast differentiation and enhance carotenoid biosynthesis in many dicotyledonous plants. However, the function of the OR gene in monocotyledons, especially rice, is poorly known. Here, the OR gene from rice, OsOR, was isolated and characterized by generating overexpressing and genome editing mutant lines. The OsOR-overexpressing plants exhibited pleiotropic phenotypes, such as alternating transverse green and white sectors on leaves at the early tillering stage, that were due to changes in thylakoid development and reduced carotenoid content. In addition, the number of tillers significantly increased in OsOR-overexpressing plants but decreased in osor mutant lines, a result similar to that previously reported for the carotenoid isomerase mutant mit3. The expression of the DWARF3 and DWARF53 genes that are involved in the strigolactone signalling pathway were similarly downregulated in OsOR-overexpressing plants but upregulated in osor mutants. Moreover, the OsOR-overexpressing plants exhibited greater sensitivity to salt and cold stress, and had lower total chlorophyll and higher MDA contents. All results suggest that the OsOR gene plays an important role not only in carotenoid accumulation but also in tiller number regulation and in responses to environmental stress in rice.