Environmental variables in seaweed habitat are known to affect the growth, abundance and distribution of seaweed. Polysaccharides extracted from seaweed have promising possibilities and play a significant role in the development of marine-based bioeconomy. In this study, the morphological characteristics of green seaweed, Caulerpa lentiliferawas studiedin parallel withother studies such asassessing the effect of different treatments to the crude yield samples and the functional properties of the seaweed. The seaweed was sourced from different environmental conditions; the naturally grown (wild) seaweed, the locally-cultivated seaweedand the commercially-cultivatedseaweed.The employed techniques encompass rinsing, water washing, freeze drying, and grinding.Seaweed specimens were extracted using a rotary vacuum evaporator at 60oC, subjected to 4 different treatments (water ; 50% ; 70% ; 90% ethanol at 1:5 solid-solvent ratio). The results showed that the highest crude polysaccharide yield was recorded by the locallycultivated C.lentilifera at 80.95% while the wild seaweed recorded only 50.3%. In terms of treatments given, the highest crude polysaccharide yield was obtained when water was used as the solvent andthe minimum crude polysaccharide yield was obtained by the samples treated with 90% ethanol. In addition to that, the results indicate that the locally cultivatedC. lentillifera exhibited significant differences in its functional properties compared to the wild species. The water activity and moisture content of the locally cultivated species were found to be 0.62 ± 0.00 and 20.29 ± 0.90%. These values were observed to be higher than those of the wild species, which were measured at 0.47 ± 0.01 and 14.08 ± 0.14%. Whereas the water holding capacity (26.54 ± 0.61 g/g DW), oil-holding capacity (8.39 ± 0.19 g/g DW) and swelling capacity (17.83 ± 0.29 mL/g DW) of locally cultivated species reported higher than the wild species (17.12 ± 0.60 g/g DW, 6.24 ± 0.19 mL/g DW and 17.83 ± 0.29 mL/g, respectively). Additionally, the emulsion stability of the wild species exhibited a statistically significant increase (93.67 ± 0.38%) compared to the locally cultivated species (88.33 ± 0.72%).This study showed that the crude polysaccharide yield was inversely proportional to the high concentration of ethanol and revealed the ability of C. lentillifera to enhance the functional characteristics of processed foods thus yielding benefits and contribute to the socioeconomic advancement of Malaysian cultivators.