Pineapple is one of tropical fruits that is easily perishes due to high moisture content. Further processed into low-moisture food such as jam is needed to extend its shelf life. Jam has a high sugar content and if consumed in the long term could increase blood sugar levels leads to diabetic disease. Carrageenan is one of the hydrocolloids that can be used as a sugar substitute because it can bind to free water, increase shelf life, and cannot be hydrolysed into simple sugar by the gastrointestinal tract. However, carrageenan needs to be modified by the hydrolysis of acid using hydrochloric acid to break down the polysaccharide structure into simpler sugar structures. The aim of the study is to determine the physicochemical properties of hydrolysed carrageenan and the effects of the application of hydrolysed carrageenan as a sugar substitute in pineapple jam. The carrageenan that used were hydrolysed by 0.01 M and 0.02 M of HCl for 24 and 48 h. Results showed that the higher concentrations of HCl used and the length of hydrolysis significantly increased the yield, viscosity, reducing sugar, and spreadability and decreasing the color intensity. It also showed that the texture and spreadability of the jam that has been substituted with hydrolysed carrageenan will increase with increasing HCl concentration and hydrolysis time.