Selenium nanoparticles are well known for their antioxidant and stress-mitigating properties. In our study, composite nanoformulations of selenium and chitosan have been synthesized. The synthesized composite nanoformulations were 50 nm in diameter, spherical in shape, and had higher antioxidant activities and stability than the selenium and chitosan nanoparticles. In our study, Luit rice seedlings grown in an arsenic-treated Hoagland solution showed a reduction of growth, decreased superoxide dismutase, catalase, ascorbate peroxidase, guaiacol peroxidase, ascorbate, and glutathione content. Otherwise, superoxide anion, hydrogen peroxide, and malondialdehyde content increased in arsenic-stressed conditions. The alone application of Selenium nanoparticles, chitosan nanoparticles, and their nanoformulation improved growth, reduced stress parameters, and enhanced enzymatic and non-enzymatic activity. Additionally, the reduction of superoxide anion, hydrogen peroxide, and malondialdehyde content was higher by applying composite nanoformulations in arsenic-stressed conditions than selenium and chitosan nanoparticles. The treatment of composite nanoformulation also regulated the enzymatic and non-enzymatic antioxidant activity higher than that of other nanoparticles. It might be due to the higher stability and antioxidant activity of composite nanoformulations than that of selenium and chitosan nanoparticles. Our study suggests that the composite nanoformulation enhanced the growth of rice plants by mitigating arsenic-induced reactive oxygen species and upregulating antioxidant activity.