Abstract: The feasibility of diluted mash fermentation technology with lower salt was evaluated for producing qualified fish sauce on a large scale and improving additional value of fish and shrimp and their leftovers. The orthogonal experiment was designed to optimize the fermentation process for production of anchovy sauce based on the single factor experiments, and the quality of anchovy sauce was evaluated. The results showed that the factors affecting the fermentation process of anchovy sauce consecutively included the ratio of rice koji to red koji, the percentage of salt as well as the percentage of the mixed koji. The optimum parameters were as follows: 15% of mixed koji, the ratio of rice koji to red koji of 4:1, fermentation period for 20 d at 40℃. The result showed that the contents of amino nitrogen (AN) and total nitrogen (TN) in anchovy sauce were 0.92 g/100 mL and 1.26 g/100 mL, respectively. The salt content reduced to 15.21%, and the total content of free amino acids amounted to 53.98 mg/100 mL, which met the first grade standard of fish sauce. GC-MS analysis showed that 85 volatile compounds were detected in the product, including alcohols, aldehydes, esters and nitrogen-containing compounds. In summary, this technology not only shortens the fermentation period, but maintains good flavor and nutrients, so it is an alternative method for fish sauce production on a large scale. In addition, it provided a new approach for improving the additional value of anchovy.