Low-salted and fermented squid product, squid jeotkal was prepared with the addition of 10% salt and fermented for 50 day at 1$0^{circ}C$. During fementation of squid, sensory evaluation and changes of volatile components were examined. Volatile flavor components in raw squid and low-salted squid jeotkal were extracted using a rotary evaporating system. The volatile concentrates were identified by GC and GC-MS. Major volatile components of raw squid were methional and 2-methyl-2-propanol. However, alcohols such as propanol, isoamyl alcohol, methionol and phenylethyl alcohol increased during the period of fermentation. The model reaction using microorganism was carried out, in order to confirm formation mechanism ofvolatile flavor compounds of the squid during fermentation. The main volatile components of Pseudomonas sp. D2 model system were isoamyl alcohol and acetoin. Those of Staphylococcus xylosus model system were isoamyl alcohol and phenylacetaldehyde.