The Red Sea coastline is known for its diverse range of seaweeds, which have been hypothesized to possess therapeutic attributes. The primary aim of this research was to evaluate the antifungal and anti-inflammatory characteristics of the ethanol crude extract obtained from two types of algae, namely Padina pavonica (P. pavonica) and Laurencia catarinensis (L. catarinensis) from the Red Sea. It was revealed from FTIR analysis of P. pavonica and L. catarinensis ethanolic extracts that the strong band at 3366 cm−1 and 3339 cm−1 corresponds to alcoholic O-H stretching in both extracts. GC-MS phytoconstituent profile of the extract was dominant with a wide range of chemical classes mainly steroids, terpenes, fatty acids, fatty acid esters, retinoid derivatives, alcohols, carotenoids and alkanes. The results of the antifungal activity assay indicate that P. pavonica had the strongest activity against Aspergillus fumigatus, with a mean value of 23.50 ± 0.55 mm. Similarly, L. catarinensis demonstrated significant antifungal activity against Candida albicans, with a mean value of 21.00 ± 2.64 mm. The hemolysis exhibited a positive correlation with the dosage of extracts, with an observed increase in hemolysis as the dosage increased. Besides the antiinflammatory activity of the algal extracts induced by carrageenan demonstrating a dose-dependent relationship between the inhibition of paw edema and the dosage of the extract.