Ulva ohnoi is a cosmopolitan green seaweed with commercial potential given the biomass that may be generated. We evaluated the effects of substrate changes induced by U. ohnoi application on the vegetative response of tomato plants under greenhouse conditions. First, the decomposition dynamics and N release of the dry seaweed biomass were studied using the litterbag method. Subsequently, we evaluated the effect of seaweed powder (SP) or seaweed extract (SE) applications on substrate and plant growth. Additionally, the growth parameters responses evaluated were related to the changes in substrate properties associated with each treatment. The results showed that the dry seaweed biomass has a rapid rate of degradation (k = 0.07 day−1) and N release (k = 0.024 day−1). The SP application improved the physicochemical and biological characteristics of the substrate by increasing the availability of minerals, the fungi:bacteria ratio, and the growth morphophysiological parameters (length, area, dry and fresh weight), chlorophyll and mineral content. In contrast, SE treatment showed a positive effect on the root, mineral content, and soil microbes. This study highlights the agricultural potential of U. ohnoi powder as an alternative supplement that supports nutrition and promotes the vegetative growth of plants cultivated in soilless horticultural systems.