Phospho-gypsum a primary waste by-product in phosphate fertilizer manufacturing industry and a potential source of electron acceptors, such as mainly of sulfate and a trace amount of iron and manganese oxides, was selected as soil amendment for reducing methane $(CH_4)$ emissions during rice cultivation. The selected amendment was added into potted soils at the rate of 0, 2, 10, and 20 Mg $ha^{-1}$ before rice transplanting. $CH_4$ flux from the potted soil with rice plant was measured along with soil Eh and floodwater pH during the rice cultivation period. $CH_4$ emission rates measured by closed chamber method decreased with increasing levels of phospho-gypsum application, but rice yield markedly increased up to 10 Mg $ha^{-1}$ of the amendment. At this amendment level, total $CH_4$ emissions were reduced by 24% along with 15% rice grain yield increment over the control. The decrease in total $CH_4$ emission may be attributed due to shifting of electron flow from methanogenesis to sulfate reduction under anaerobic soil conditions.