To reduce the pungency of Capsicum without the loss of its biological activity, a Capsicum sp. was fermented by Bacillus subtilis with the addition of Rapidase enzyme. At 1 day of fermentation, the capsaicin content of the Capsicum ferment with Rapidase had sharply decreased from an initial content of 11.8 to 2.8 mu g/ml. The Rapidase-fermented Capsicum had higher total flavonoid and phenolic contents than the Capsicum ferment without Rapidase. In addition, ABTS radical scavenging activity was enhanced in the Rapidase-fermented Capsicum as compared to that without Rapidase. Overall, fermentation using B. subtilis and Rapidase was an efficient method to produce a non-pungent Capsicum with antioxidant properties.