In the present study, the effect of silkworm pupae peptide on acidification, water-holding capacity (WHC), textural properties, sensory characteristics, angiotensin I-converting enzyme (ACE) inhibitory activity, and the amino acid composition of fermented milk products was studied. The addition of peptide enhanced acidification, thus reducing the fermentation time. Furthermore, addition of > 0.7% peptide significantly (P 0.3%. Therefore, further studies are necessary to optimize the flavor of yogurt containing silkworm pupae peptide. Practical Applications The demand for dairy products containing bioactive peptides is high because their intake can fulfill the nutritional requirement. In this study, the effect of silkworm pupae peptide on the qualities of dairy products was studied. Addition silkworm pupae peptide could enhance acidification and reduce the fermentation time. Addition of 0.5% silkworm pupae peptide could enhanced ACE inhibitory activity and amino acid content. Although addition of silkworm pupae peptide had beneficial effects on the firmness, consistency, and cohesiveness of yogurt, it reduced the overall flavor. The results are useful for the yogurt industry in improving production efficiency and product quality.