Shrimp shell waste is a potential source of the biopolymer chitin. Through fermentation, chitin can be converted into its derivative products. This study aimed to isolate and characterize the products of the biodegradation of chitin from shrimp shell waste through a solid-state fermentation process using actinomycetes. Actinomycete isolates were obtained from tunicate marine biota collected from the waters of Buleleng, Bali, using a dilution technique on 1% chitin colloid agar medium. The isolated actinomycetes were cultivated on a shrimp shell waste medium for 7 days, and then the products of the biodegradation of the oligomers were extracted using water. The extracts of the biodegradation products of the shrimp shells were isolated through several chromatographic steps and analyzed using LC–MS–MS, and the bioactivity of the biodegradation products against fungi was tested. The morphological observations and phylogenetic analysis showed that the isolate 18D36-A1 was a rare actinomycete with the proposed name Pseudonocardia antitumoralis 18D36-A1. The results of the analysis using TLC showed that the solid-state fermented water isolate 18D36-A1 produced several oligomeric components. These results indicate that the isolate 18D36-A1 was able to convert chitin into chitooligosaccharides. Further isolation of the extract produced the active fraction D36A1C38, which can inhibit the growth of fungi by 74% at a concentration of 1 mg/mL. This initial information is very important for further studies related to the development of a solid-state fermentation process for obtaining bioactive compounds from shrimp shell waste.