Seaweed is a macroscopic marine algae which has been used as human food since ancient times. Food values of seaweed are mainly due to significant amounts of protein, vitamin, mineral, trace elements and dietary fibre apart from substances of antibiotic nature. In this study edible red seaweed Eucheuma (Kappaphycus alvarezzi), was used as an ingredient in the preparation of spice adjunct. Functional properties such as soluble solids, water-holding capacity, oil holding capacity and swelling capacity of Eucheuma were studied. Steamed Eucheuma powder was added at levels of 15, 20 and 25% in the preparation of spice adjunct. Sensory analysis and consumer acceptability study of spice adjunct showed that the incorporation of Eucheuma upto 20% had high acceptability. Spice adjunct containing 20% Eucheuma had 6.2% moisture, 22.2% ash, 29.2% fat, 10.0% protein, 9.4% crude fibre and 23% carbohydrates. Based on equilibrium relative humidity studies metallized polyester was selected as the packaging material. Storage studies indicated that metallized polyester provided a shelf life of 120 days at both the ambient and accelerated conditions.