Paprika (Capsicum annuum L.) slices were dehydrated with red algae extract (RAE) at a concentration of 30%(w/w) and compared with hot-air dried samples in terms of rehydration ratio, total carotenoid content, ascorbic acid, microstructure, and color. The rehydration ratios of RAE-treated samples were higher than those of hot-air dried samples. The total carotenoid contents of RAE-treated samples were similar to those of fresh paprika and higher than those of hot-air dried paprika. In addition, the ascorbic acid contents of RAE-treated samples were higher and the microstructures of RAE-treated samples were superior to those of hot-air dried samples in terms of cellular matrix. The colors of RAE-treated samples were similar to that of fresh paprika and better than those of hot-air dried samples. These results suggest that paprika can be dehydrated with RAE without loss of functional components or quality.