Florets are the basic structural units of spikelets, and their morphogenesis determines the yield and quality of rice grains. However, whether and how pseudouridine-5′-phosphate glycosidase participates in rice spikelet development remains an open question. In this study, we identified a novel gene, OsPPG, which encodes a peroxisome-localized pseudouridine-5′-phosphate glycosidase and regulates the development of rice spikelets. osppg mutants exhibited abnormal sterile lemma, lemma, palea, lodicule, stamens, and pistils; male sterility; shorter panicles; and reduced plant height. OsPPG was found to regulate several OsMADS genes, thereby affecting the morphogenesis of rice spikelets. Furthermore, metabolomics revealed that the OsPPG gene was involved in the decomposition of pseudouridine via the pyrimidine metabolism pathway and may affect the jasmonic acid signaling pathway. These results suggest that OsPPG is a key regulator of rice spikelet development.