The fractions of Capsosiphon fulvescens were studied to verify the anticancer and immunostimulating activity. The fractions from the ethanol extract of C. fulvescens were prepared by the systematic extraction procedure with the solvents such as hexane, ethyl ether, methanol, butanol and H$_2$O. The cytotoxic effects of C. fulvescens fractions against human leukemia cell line U937, mouse neuroblastoma cell line (NB41A3), human hepatoma cell line (HepG2)and rat glioma cell line (C6) were investigated. Ethyl ether fraction of C. fulvescens showed the highest cytotoxicity against all four cell lines tested. In addition, H$_2$O fraction also showed relatively high cytotoxicity. Dose dependent patterns were observed on all four cell lines. The immune-stimulating effects of C. fulvescens fractions on rat macrophage cell line (RAW 264.7) were also investigated. All five fractions of C. fulvescens extract stimulated NO production with concentration dependant manner. These results suggest that C. fulvescens may be a useful candidate for a natural antitumor and immune-stimulating agent.