Rice is commonly consumed as fully mature grain, but immature rice is considered to have better nutrient and technological properties. This is attributed to changes in content and profile of nutritional and functional compounds during maturation. This study assessed the effect of maturity on nutrient content of rice grains, and in vitro digestibility of starch and protein, for immature rice grains of TXD306 and Lawama varieties. The effect of processing of immature rice into so-called pepeta, traditionally produced from immature rice grains and widely consumed in Tanzania, was studied as well. The results showed reductions in lipid, protein, ash, thiamine, nicotinic acid, nicotinamide, and soluble and insoluble dietary fibre contents during rice grain development. However, no effect of maturity on in vitro starch and protein digestibility was observed. The contents of protein, ash, lipid, nicotinamide, iron, zinc, and total, soluble and insoluble dietary fibre were higher in pepeta from both varieties than in the corresponding rice grains. Protein digestibility of pepeta flour was 58.9% higher than that of cooked rice for variety TXD306, and 73.8% higher for Lawama. Differential scanning calorimetry indicated that starch of processed immature rice was completely gelatinized whereas its susceptibility to digestion in vitro was slightly lower than for cooked rice, possibly due to the higher cellular integrity retained after processing. These results demonstrate that pepeta-type processing improves the nutritional properties of rice and its potential use as a snack or ingredient in cereal-based formulas.