Codium fragile (CF) contains various bioactive compounds, but its high salt content (39.8%) makes its use as a functional food challenging. Here, we aimed to optimize the desalination process and verify changes in functionality based on variations in salt and total phenolic contents. To optimize the CF immersion conditions for the lowest salt content and monitor the total phenolic content, a response surface methodology was used. The optimal immersion conditions were as follows: X₁ (immersion temperature) = 42.8 °C; X₂ (immersion time) = 1.0 h. An inverse correlation was noted between salt content and total phenolic content. Among the post-desalination processes, desalination with centrifugal dehydration (CD) significantly reduced salt content. CD ethanol extract (CD-E) induced the longest sleep duration in the pentobarbital-induced sleep test in ethanol extracts. Moreover, 1000 mg/kg CD-E had a significant effect on non-rapid eye movement sleep but did not affect delta activity. These findings highlight the potential of industrializing CF as a functional food through desalination and its promise as a natural aid for sleep promotion.