In this study, the effects of magnolia (Magnolia (M.) denudata) extract fermentation in increasing the extract’s antioxidative and anticancer activities were investigated. Magnolia was fermented by Pediococcus acidilactici KCCM 11614. The total phenolic content was determined by the Folin-Ciocalteu’s method and the antioxidative effects by 1,1-diphenyl-2-picrylhydrazy (DPPH) and ferric reducing ability of plasma (FRAP) assay. Anticancer activity against cancer and normal cells was determined using 3-[4,5-dimethylthiazol-2-yl]-2,5-diphenyltetrazolium bromide (MTT). Total phenolic content during fermentation increased from 38.1 to 47.0 mg gallic acid equivalent (GAE)/g of solid matter. The radical scavenging activity was 91.4% after 72 h fermentation. Fermented magnolia’s antioxidative effect was threefold higher than that of the (non-fermented) control. Fermentation (48 h) increased anticanceric activity against AGS, LoVo, and MCF-7 cancer cells 1.29- to 1.36-fold compared with that of the control, but did not affect MRC-5 (normal) cells, suggesting that fermented magnolia could be used as a natural antioxidative and anticancer agent.