The present investigation aims to study the nutraceutical potency of soy whey hydrolysate, which can be incorporated as an antioxidant supplement in food products. The hydrolysate was passed through a series of ultrafiltration membranes (30 and 10 kDa MWCO) out of which only 10 kDa permeate showed 1.2-fold increased activity having stability range of pH 2–9. Under extreme pH, radical-scavenging activity decreased, retaining nearly 79% of the total original activity. More than 50% of antioxidant activity loss was observed at salt concentration >1.5 mM. Micronutrients such as Cu2+, Mn2+, Ca2+, Mg2+ and Co2+ in the reaction medium also reduced the ABTS scavenging activity up to >60%. Addition of phenolics and vitamins in hydrolysates showed strong synergistic effects with peptides. Gastrointestinal digestion resulted in 1.15-fold increase in the activity with pancreatic digestion. Such results prove the candidature of soy whey hydrolysate as potential ingredient to formulate functional foods. Practical Applications Antioxidant peptide-rich soy whey hydrolysate can be used as nutritional and antioxidant supplement in food formulation as they are rich in eight essential amino acids and bear a wide range of antioxidant stability during processing.