Milkfish is one type of fish that can be used as raw material for surimi. However, previous research indicated that the quality of surimi powder produced from milkfish needed some improvements in order to produce surimi with good texture and strength gel. The addition of microbial transglutaminase (MTGase) enzyme is expected to produce surimi with better gel characteristics. The research objectives were to determine the best enzyme concentration and reaction time in the formation of surimi gel and to determine the effect of enzyme addition on the physical and chemical characteristics of surimi gel produced. The research was divided into two stages: 1) preparation for making surimi, and 2) determination of enzyme concentration and reaction time for surimi gel formation. The research treatment consisted of two factors, which were enzyme concentration (0, 0.1, 0.3, 0.5 units/g of surimi) and reaction time (0, 30, 60 mins). The observation parameters consisted of yield, gel strength, whiteness, pH, water content, protein content, and fat content. The results showed that the best concentration of MTGase enzyme was 0.5 units/ g with a reaction time of 60 mins. The addition of transglutaminase enzyme gave an effect significantly on gel strength, whiteness, protein content, and fat content in the milkfish surimi gel produced.