Agar extracted from Gracilaria was hydrolyzed by 0.01 M HCl at 80oC and neutralized to about pH 6 by NaOH to produced a better hydrolysate on the prebiotic effects of lactic acid bacteria (LAB). Prebiotic effects of 16 strains of LAB revealed that agar hydrolysate group had better scores on 2 strains of bifidobacteria, 4 strains of lactobacilli, and the 1 stain of Streptococcucs (S.) thermophilus than the inulin group; only 1 stain of bifidobacteria appeared that inulin group was better, and the others strains had no significantly difference between two group. The dinking yogurt added 1% agar hydrolysate or inulin and fermented by above 6 strains of LAB for 24 hr showed the viable cell count was more than 12 log CFU/mL, and the pH and titratable acid could exceed above 4.6 and 0.6%. Agar hydrolysate group appeared better antioxidative activities than inulin groups, especially for SOD-like inhibition (agar hydrolysate: 94.242.25%; inulin: 30.546.55%). This ability was contributed from agar hydrolysate. Inulin had no any antioxidative abilities. The starters were stable at their viable cell counts that still above 12 log CFU/mL lasted out 14 days storage at 4oC. Taking the above results showed that agar hydrolysate not only had prebiotic effects on LAB, but also had specific physiological functions when added in drinking yogurt.