Carrageenan is a polysaccharide extracted from red algae and can be used as a raw material for hard-shell capsules. Carrageenan can be produced by biological hydrolysis of marine fungi. The viscosity of carrageenan resulting from hydrolysis using marine fungi is lower than that of commercial carrageenan. Gelatine can be used to modify the characteristics of polysaccharide-based materials. The characteristics and types of carrageenan and plasticizers influence the interactions between carrageenan and gelatin. This study aimed to determine the characteristics of carrageenan produced by seaweed hydrolysis of a hard-shell capsule material. The physical characteristics of the carrageenan produced by hydrolysis were determined, including yield, viscosity, and gel strength. The properties of the hard-shell capsules, including dimensions, capsule weight, disintegration time, and moisture content, were analyzed. The yield was 25%, and the viscosity and gel strength of carrageenan were 45 cP and 175 gf, respectively. Carrageenan contains 13% moisture, 8% ash, and 8% cellulose. Semi-refined carrageenan produced by this treatment was used to prepare hard-shell capsules. The capsule made from semi-refined carrageenan had a body length of 18 mm, capsule length of 10 mm, capsule weight of 0.9 grams, disintegration time of 10 min, and moisture content of 12%.