Abstract: Genes of Bacillus thuringiensis (Bt) are the most studied and applied genetic material for transgenic plant bioengineering research. For instance, the transgenic Bt rice is highly effective in controlling lepidopterous pests, such as the striped stem borer, yellow stem borer and rice leaf roller. Consequently, commercial cultivation of Bt rice has become a focal point for the scientists in China and abroad. This article reviews current progress on the related studies with an emphasize on the ecological effect of Bt rice on non-target insects in the field. Future development and research concerning the issues are discussed.