The NS3 protein of rice stripe virus (RSV), encoded by the virion strand of RNA3, is a viral suppressor of RNA silencing (VSR). Rice expressing NS3 had a normal phenotype, was initially sensitive to RSV but recovered at the later stages of infection. RSV accumulated slightly more in transgenic than in wild-type plants at the early stage of infection, but accumulation was similar later. Transgenic rice expressing NS3 also showed enhanced resistance to the fungus Magnaporthe oryzae. Meanwhile, expressional levels of genes related to the salicylic acid (SA) and jasmonic acid (JA) pathways were not significantly altered, indicating that the defense to M. oryzae was independent of the SA and JA pathways. We propose that NS3 may have dual functions, facilitating viral infection as a VSR and inhibiting pathogenic development as an inducer of host defense.