For its advantages of easy handling and long availability, coated fertilizer finds tremendous potential of application in China. Field experiments were conducted to compare polypropylene-coated urea with common urea in yield-increasing effect on rice. Results showed that yield of the crop was increased by 22.22% in the low urea treatments; nitrogen use efficiency of the coated urea and common urea treatments was 76.88% and 37.75%, respectively; and N content shoots of the rice in coated urea treatments was 24.09% and 20.03% higher than that in common urea treatments. Coating controlled N release and one application was enough to meet the nutrient requirements of the crop throughout its life cycle. Moreover, it saved much labor and gained considerable economic benefit at a lower N application rate.