Teak leaves extract has been reported to contain many bioactive compounds that promote beneficial effects such as antioxidant activity. Kappa carrageenan has been reported to improve the physical characteristics of edible coating at certain concentrations. This research was aimed to develop physical characteristics and functional properties of edible coating with addition of teak leaves extract and kappa carrageenan. Edible coatings were made by adding 3 levels of kappa carrageenan concentration(7%, 7.5%, 8%) and 4 levels of teak leaves extract concentration (0%, 0.05%, 0.15%, 0.25%). Each treatment was analyzed for physical characteristics such as tensile strength, elongation, width, and water vapor transmission rate. Edible coating with the best characteristics will be applied to the sausage product and tested for it’s resistance to oxidation after storage for 1 day, 2 days, and 3 days at room temperature, and for 2 days, 4 days and 6 days at the chilling temperature. Sausages with edible coating without the addition of the teak leaves extract is used as a control. Parameter observations on primary research total plate count, tiobarbituric assay, pH, and total volatile base nitrogen. The addition of 0.25% teak leaves extract and 7.5% kappa carrageenan produce edible coating with the best characteristics