This study investigated acetic acid fermentation properties and antioxidant activity of vinegar by addition of lemon grass to develop high quality vinegar by using lemongreass. Traditional brown rice wine contained 5% lemongrass powder and had an alcohol content of 7.2%. The wine was fermented by Acetobacter. sp. RIC-V and made into lemongrass vinegar (LV). The pH and total acidity of the LV were 3.13% and 7.21%, respectively. Fructose was detected whereas glucose, sucrose, and maltose were not detected. Among organic acids, acetic acid was highest at 3658.6 mg%; trace amounts of lactic acid, citric acid, malic acid, tartaric acid, and oxalic aicd were detected. Of the 17 free amino acids, glutamic acid, histidine, alanine, and proline were mainly detected. To conduct total polyphenol content and ABTS radical scavenging activity, 3% and 5% lemongrass powder (P3LV, P5LV) and 1%, 2%, and 3% of lemongrass extract (E1LV, E2LV, E3LV) were added to LV, respectively. Total phenolics increased as the added lemongrass powder and extract increased. Total phenolics were 490.9, 559.4, and 895.7 μg gallic acid equivalents/mL in brown rice vinegar, LV, P5LV. ABTS radical scavenging activities were 43.2%, 58.0%, and 91.0% in brown rice vinegar, LV, P5LV, respectively. These results show that lemongrass vinegar has considerable potential as a high quality functional vinegar with antioxidative effects.