Bacterial Leaf Blight (BLB), caused by Xanthomonas oryzae pv. oryzae, is a devastating disease that significantly impacts rice productivity, leading to severe yield losses in many rice-growing regions worldwide. This review aims to provide a comprehensive synthesis of recent advancements in the diagnostics, epidemiology, and management of BLB, while examining its economic impact and the influence of climate change on disease dynamics. Traditional diagnostic methods, including visual assessment and bacterial isolation, are being complemented by advanced molecular tools such as PCR, real-time PCR, and CRISPR-based methods, which offer enhanced accuracy and early detection capabilities. Climate variability, including increased temperatures, humidity, and extreme weather events, has been shown to affect the incidence and severity of BLB, facilitating the pathogen's spread to non-endemic regions. Furthermore, the economic burden of BLB management, particularly for smallholder farmers, poses a threat to food security and market stability. Recent case studies from Asia highlight the substantial financial losses caused by BLB, emphasizing the need for integrated management strategies. Advances in host resistance through gene pyramiding and breeding for climate-resilient varieties, combined with biological control and optimal cultural practices, are critical for sustainable BLB management. This review identifies key knowledge gaps, such as the need for novel diagnostic tools, climate-resilient rice varieties, and an improved understanding of pathogen evolution. Policy recommendations are provided to enhance international collaboration and strengthen research and extension services, ultimately aiming to mitigate the economic impact of BLB on global rice production under changing climate conditions.