Enzymatic modification is an effective method for the improvement of the functional properties and physiological activities of plant and animal proteins. In this study, the effect of the degree of hydrolysis (DH) on the functional properties and antioxidant activities of the silkworm pupa protein hydrolysates were investigated. Enzymatic hydrolysis significantly improved the solubility of silkworm pupa protein and the solubility was increased with the increasing DH. Enzymatic hydrolysis decreased the emulsifying activity and emulsifying stability but increased the foaming ability and foaming stability, and the maximum foaming ability and foaming stability were obtained when DH was 5%. Enzymatic hydrolysis significantly improved the antioxidant activities. When DH was 5%, the reducing power, DPPH radical scavenging ability, and hydroxyl radical scavenging ability reached their maximum. However, the maximum of superoxide anion free radical scavenging capacity was achieved at the DH of 15%. The results indicate the appropriate DH is very important for the functional properties of protein hydrolysates.