While it is most easily prepared by simply mixing steamed white rice and yogurt, more elaborate methods can be used when needed. Rice is prepared either via steaming or pressure cooking to be soft as in the South Indian style. It is then allowed to cool to room temperature, after which it is seasoned with finely chopped green chillies, ginger, and curry leaves, and sometimes along with the tempering of black gram, mustard seeds, cumin seeds, and asafoetida. Finally, curd and salt are added.

Curd rice is often eaten accompanied by South Asian pickles. In South Indian cuisine, curd rice is traditionally eaten at the end of lunch and dinner, as this helps ease the effects of spicy food consumed prior. It is also said to aid digestion, as well as to balance the effects of the warm climate.