Chemical reactions at temperatures near absolute zero require a full quantum description of the reaction pathways and enable enhanced control of the products via quantum state selection. Ultracold molecule experiments have provided initial insight into the quantum nature of basic chemical processes involving diatomic molecules, for example from studies of bimolecular reactions, but complete control over the reactants and products has remained elusive. The half-collision process of photodissociation is an indispensable tool in molecular physics and offers significantly more control than the reverse process of photoassociation. Here we reach a fully quantum regime with photodissociation of ultracold
88Sr
2 molecules where the initial bound state of the molecule and the target continuum state of the fragments are strictly controlled. Detection of the photodissociation products via optical absorption imaging reveals the hallmarks of ultracold chemistry: resonant and nonresonant barrier tunneling, importance of quantum statistics, presence of forbidden reaction pathways, and matter wave interference of reaction products. In particular, this interference yields fragment angular distributions with a strong breaking of cylindrical symmetry, so far unobserved in photodissociation. We definitively show that the quasiclassical description of photodissociation fails in the ultracold regime. Instead, a quantum model accurately reproduces our results and yields new intuition.