Pseudorandom states (PRS) are an important primitive in quantum cryptography. In this paper, we show that subset states can be used to construct PRSs. A subset state with respect to $S$, a subset of the computational basis, is \[ \frac{1}{\sqrt{|S|}}\sum_{i\in S} |i\rangle. \] As a technical centerpiece, we show that for any fixed subset size $|S|=s$ such that $s = 2^n/ω(\mathrm{poly}(n))$ and $s=ω(\mathrm{poly}(n))$, where $n$ is the number of qubits, a random subset state is information-theoretically indistinguishable from a Haar random state even provided with polynomially many copies. This range of parameter is tight. Our work resolves a conjecture by Ji, Liu and Song. Since subset states of small size have small entanglement across all cuts, this construction also illustrates a pseudoentanglement phenomenon.