Brown seaweeds such as Sargassum are very rich in iodine, currently discarded as waste material leading to environmental pollution along Indian coasts of Tanzania. The ability of Saccharomyces cerevisiae edible yeasts isolated from mangrove sediment to absorb iodine from Sargassum extract was investigated and analyzed by standard iodine determination method. The effect of boiling Sargassum extracts as growth media for yeasts during submerged culture fermentation was determined by monitoring yeast growth on the media by using spectrophotometer. Results demonstrated the ability of Saccharomyces cerevisiae edible yeasts to bio-extract iodine from Sargassum brown seaweeds extract. The yeast cells biomass from non-boiled Sargassum extract recorded the highest concentration of (0.06 mg/l) followed by yeasts from boiled extracts (0.03 mg/l) and the lowest (0.02 mg/l) was recorded from yeasts grown in aquatic yeasts broth. This is the first feasibility study on production of iodized edible yeast Saccharomyces cerevisiae on Tanzanian Sargassum seaweeds. Therefore, production of iodized edible yeast could in future help alleviate the iodine deficiency problem through inclusion as dietary supplement. However, such unexploited potential needs further research on optimization of fermentation parameters, supplement formulation and biosafety issues such as dosage.