The decomposition and burning of straw results in serious environmental pollution, and research is needed to improve strategies for straw collection to reduce pollution. This work presents an integrated design of multi-functional rice combine harvester that allows grain harvesting and straw baling. This multi-functional combine harvester could reduce the energy consumption required for rice harvesting and simplify the process of harvesting and baling. The transmission schematic, matching parameters and the rotation speed of threshing cylinder and square baler were designed and checked. Then the evaluation of grain threshing and straw baling were tested on a transverse threshing cylinders device tes rig and straw square bales compression test rig. The test results indicated that, with a feeding rate of 3.0 kg/s, the remaining straw flow rate at the discharge outlet was only 1.22 kg/s, which indicates a variable mass threshing process by the transverse threshing cylinder. Then the optimal diameter, length and rotating speed of multi-functional combine harvester transverse threshing cylinder were 554 mm, 1590 mm, and 850 r/min, respectively. The straw bale compression rotating speed of crank compression slider and piston was 95 r/min. Field trials by the multi-functional combine harvester formed bales with height×width×length of 40×50×54-63 cm, bale mass of 22.5 to 26.0 kg and bale density 206 to 216 kg/m3. This multi-functional combine harvester could be used for stem crops (such as rice, wheat and soybean) grain harvesting and straw square baling, which could reduce labor cost and power consumption.