In order to develop a new pathway to scavenge hydroxyl radical and to utilize kelp waste, edible-medicinal fungi was fermented in medium mainly composed of kelp waste, and the products from fermentation were investigated with hydroxyl radical scavenging assays. Results showed that fungi could grow in this medium and produce abundant polysaccharides which have the capacity for hydroxyl radical scavenging. Assays indicated the capacity of fermented kelp waste for hydroxyl radical scavenging as the EC50 values were 0.77±0.012 mg/mL while scavenging rate of its polysaccharides were much higher.