Many kinds of microorganism canproduce a mount of protease which subsequentlyhydrolysis the protein of the medium into peptideswhen they grow in protein containing liquidmedium. In the present investigation, theconditions of preparing soybean peptides byliquid fermentation were studied following resultswere obtained: (1) SPI is a nice nitrogen sourceand meanwhile an inducible factor of proteaseproduction; its concentration can be as high as3%-4%. (2) Sucrose is the best carbon source;its concentration is 1%-4%. (3) Under theconditions of 28℃, initial pH 60, inoculum size4%, cell age 36hr and fermentation time 24hr-30hr, we can obtain soybean peptides orfermentation liquor with good flavor, its Dhreaches 25%-30% and the yield rate can be ashigh as 75%. (4) Mass spectrograph indicate theMW of the fermentation liquid or the soybeanpeptides mainly distribute at a Dal, theseimply a promising prospect of industrialapplication of submerged fermentation inproducing soybean peptides.