This paper explains the development of an ultrasonic scalpel for soft tissue dissection. It is used in both open and laparoscopic surgery to coagulate and dissect the soft tissue. The ultrasonic scalpel has been designed, prototyped, and characterized. The development includes its power supply with ultrasonic-wave-signal generator, ultrasonic transducer, ultrasonic amplifier, a pair of end effectors, and a casing with trigger mechanism. Conceptual design was done by using SolidWorks, and the conceptual design was simulated and refined until optimum design is obtained. The prototype of the final design was done by using machining process for the metal components and rapid prototyping for the plastic parts which are finally assembled for characterization purpose, which includes the measurement of natural frequency, vibration stroke, and its capability to dissect soft tissue. The result shows that the natural frequency of the ultrasonic scalpel is 29.3 kHz, with peak to peak vibration stroke of 40µm. The ultrasonic scalpel can dissect muscle tissue of chicken in 16.6s at the maximum temperature along the dissection site of 81.7°C.