The aim of this study is to utilize the algae extracts with functionalities such as antioxidant and antimicrobial properties for preparing lip balm. Functional properties of extracts from Dictyota coriacea and Ulva pertusa were evaluated in terms of DPPH radical scavenging activity and antimicrobial activity. Lip balms contained the algae extracts were tested its efficacy by measuring the moisture retention of lip skin after applying human subjects. According to the results of skin moisture retention measurement, lip balm was effective to increase the moisture retention of lip skin. It is considered that the utilization of colorants extracted from algae which are verified of antioxidant effect and antimicrobial activity is valuable and useful in developing the cosmetic products.