Penicillium sp NIOM-02 was isolated from the marine sediment, produced red pigment. The pigment extracted from this fungus scavenged 2, 2-diphenyl-1-pycrylhydrazyl (DPPH) radical. Penicillium sp NIOM-02 grown in media containing corn steep liquor scavenged 72–88% of DPPH radical. During solid-state fermentation on wheat (S1), the fungus produced more pigment (9.232 OD Units). Penicillium sp NIOM-02 grown on sugarcane bagasse scavenged 91% of DPPH radicals. It secreted more amylase (246 U mg−1) in culture medium No. 5 and the zymogram analysis revealed its molecular mass (53 kDa). The taka-amylase like character of amylase was determined by acarbose incorporated studies in the culture media. Production of pigment and radical scavenging activity of Penicillium sp NIOM-02, suggested its applications in food, pharmaceuticals and nutraceutical industries.