Soybean meal (SM) is considered a by-product of soybean that is obtained after oil production. SM is a rich source of protein that contains about 45%. It is a good source of bioactive peptides because of its content of amino acids that includes all essential amino acids such as Leu, Phe, Lys and Met were (8.14%, 6.25%, 5.37% and 1.12%) respectively. Protein of SM was isolated by isoelectric point and precipitated at pH 4.5. Hydrolysis of soybean meal protein (SMP) was performed by pepsin enzyme. The molecular weight of SMP and its hydrolysates was determined by SDS-PAGE. Peptides that were obtained by enzymatic hydrolysis were fractionated and resulted in peptides 1 (<10kDa) and peptides 2 (>10kDa). Peptides 1 and 2 were tested as anti-inflammatory and antimicrobial agents. The anti-inflammatory effect of peptides was measured using RAW264.7 cells and the inhibition of nitric oxide (NO) at different concentrations. The best effect of peptides 1 and 2 was at concentration (400 µg mL ^-1) 24.9% and 29.7% respectively. The anti-microbial effect of peptides was determined by using four strains of bacteria: (Escherichia coli ATCC 8739, Pseudomonas aeruginosa ATCC 9027, Listeria monocytogenes ATCC 13932 and Bacillus cereus ATCC 9634). Peptides showed a good effect against E. coli at a concentration (1000 µg mL^-1) as the MIC of peptides 1 and 2 against it was (0.25 mg mL^-1 (and the inhibition zone was19 mm for the two peptides.