Many snacks in the market lack nutritional value, whereas seaweed-based products, renowned for their nutrient-rich content and health benefits, are increasingly utilised to produce healthier snack choices. This study aimed to determine the best formulation for the development of crackers incorporated with Malaysian red seaweed Gracilaria changii. G. changii powder with different concentrations (2.4–9.6%) was incorporated for the development of crackers by substitution with wheat flour. It was found that a concentration of 2.4% G. changii powder was preferred by the sensory evaluation panelists. The physical analyses revealed that the preferred seaweed crackers were those that were lighter in colour, had less red and yellowness, and had a good texture for hardness and fracture-ability. The water activity (0.33) of the crackers was ideally low to prevent the growth of microorganisms. The best formulation proceeded with nutrient composition analyses. It was found that the nutritional values of seaweed crackers were significantly (p < 0.05) different from the control crackers (without seaweed); where the seaweed crackers had an increment in ash (from 4.98% to 5.62%), dietary fibre (from 3.30% to 7.80%), protein (from 8.42% to 8.63%), moisture (from 6.65% to 7.06%), and reduction in fat (from 0.58% to 0.32%) and carbohydrate (from 76.16% to 70.57%) as compared to control crackers on a dry weight basis. In conclusion, this study demonstrated that G. changii powder can be effectively utilised for the development of healthy crackers.