In this research the antioxidant activity of water extracts of Bifurcaria bifurcata (BBE) at different dose against butylated hydroxytoluene (BHT) was evaluated in canola oil. Water extracts were firstly characterized in terms of total solid and polyphenolic compound contents, and their antioxidant activity together with that of BHT was evaluated using several in vitro tests (DPPH, ABTS, ORAC and FRAP). Next, the progress of lipid oxidation was assessed in canola oil added with five BBE concentrations (200, 400, 600, 800 and 1000ppm) and two BHT concentrations (50 and 200ppm) using an accelerated oxidation test. The progress in lipid oxidation was monitored by assessing some chemical indices (peroxide value, p-anisidine value, and conjugated dienes) during oil storage and some volatile compounds at the end of the storage period. BBE showed a significant antioxidant effect, being this ability concentration-dependent. The extent of lipid oxidation was inversely related to BBE dose, specially with regard to primary oxidation products. At the highest level of BBE, significant decreases of primary and secondary oxidation products, with respect to the control, were obtained with reduction percentages of 71.53%, 72.78%, 68.17% and 71.3% for peroxides, conjugated dienes, p-anisidine and TOTOX values, respectively. A level of 600ppm or higher concentration of the extract inhibits the lipid oxidation in a similar way than BHT at 200ppm. Regarding the inhibition of the formation of volatile compounds, both BBE and BHT strongly inhibited the formation of volatiles during oil storage, being this inhibition similar for all the concentrations of BBE and BHT essayed. Overall, results indicated that BBE can be used as a potential natural additive for improving oxidative stability of canola oil.