The proportion and area of ratoon rice planting in China have been substantially increased, due to continuous improvement of rice breeding methods and consecutive innovation of cultivation technology, which has developed into one of rice planting modes with significant production efficiency. Combining the experience in research and practice, from the perspective of crop physiology and ecology, we reviewed the current situation and prospects of high-yielding formation and physiological mechanisms of ratoon rice. We focused on four key aspects: screening and breeding of ratoon rice cultivars and the classification; suitable stubble height for mechanically harvested ratoon rice, as well as water and fertilizer management; dry matter production and allocation in ratoon rice and the relationship with yield formation; regenerative activity and vigor of ratoon rice roots and their relationship with rhizosphere micro-ecological characteristics. As for the extending of mechanized low-cut stubbles ratoon rice technique, we should properly regulate the rhizosphere system, coordinate rhizosphere nutrient supply, germination of axillary buds, and tillering regeneration, to achieve the target of "four-high-one-low", that is high regeneration coefficient, high number of regeneration panicle, high harvest index, high yield, high quality, low-carbon and safe, aiming to improve the sustainability of ratoon rice industry.