The aqueous enzymatic process of simultaneously preparing oil and protein hydrolysates from peanut was investigated. The optimum parameters for hydrolysis using Alcalase 2.4L were established by the single-factor and orthogonal test. The optimal processing conditions were as follows: hydrolysis temperature 60 °C, pH 9.5, ratio of material to water 1:5 (w/w), alkaline extraction time 90 min, enzyme amount 1.5% (w/w) and hydrolysis time 5 h. Under these conditions, the free oil and protein hydrolysates yields were 79.32% and 71.38% respectively. In order to improve these yields, As1398 was chosen to hydrolyze the residue and emulsion. The total free oil and protein hydrolysates yields were increased to 91.98% and 88.21% respectively.