In 2016, she won the prestigious All England Open on her Birthday after defeating Wang Shixian in the final with score 21–11, 16–21, 21–19, and thereby became the first Japanese women's singles player to lift this title in 39 years since Hiroe Yuki's triumph back in 1977. She was seeded 6th for Rio Olympic Games. She defeated Akane Yamaguchi in quarterfinal 11–21, 21–17, 21–10 and reached the semis. Her opponent for semifinal was No. 9 seed P. V. Sindhu. Okuhara had no answers to Indian's attacking play and she went down in 2-straight games 19–21, 10–21. In the bronze medal match she was given walkover against Li Xuerui of China as her opponent was injured. In the process, she became Japan's first ever Badminton Women's singles player to win an Olympic medal. In the China Superseries in November, she developed shoulder issues which forced her to withdraw from Hong Kong Open and her chance of defending the Dubai Superseries Finals title was thwarted.