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Chloroplast RNA splicing and ribosome maturation (CRM) domain proteins are a family of plant-specific proteins associated with RNA binding. In this study, we have conducted a detailed characterization of a novel rice CRM gene (<i>LOC_Os04g39060</i>) mutant, <i>yl4</i>, which showed yellow-green leaves at all the stages, had fewer tillers, and had a decreased plant height. Map-based cloning and CRISPR/Cas9 editing techniques all showed that <i>YL4</i> encoded a CRM domain protein in rice. In addition, subcellular localization revealed that YL4 was in chloroplasts. <i>YL4</i> transcripts were highly expressed in all leaves and undetectable in roots and stems, and the mutation of <i>YL4</i> affected the transcription of chloroplast-development-related genes. This study indicated that <i>YL4</i> is essential for chloroplast development and affects some agronomic traits.