The production of protein hydrolysate from shrimp cooking water using enzyme Neutrase 0.5L was studied. Variations of enzymatic hydrolysis conditions consisted of enzyme concentration at 0, 0.5, 1.0, 1.5 and 2.0 % V/V; pH 5.5, 6.5 and 7.5; temperature 50, 55 and 60 deg C; and the hydrolysing time; 15, 30, 45, 60, 75 and 90 minute. The optimum condition for production of hydrolysate which gave the maximum amino acid nitrogen at 3.50 mg N/ml were 0.5 % Neutrase, pH 6.5, 50 deg C and 30 minute. The hydrolysate was dried by freeze-drying. The dried product had dark brown color with considerable shrimp flavor and absorbed moisture quite readily. The product contained 3.80 % moisture, 51.89 % protein, 6.57 % fat, 24.76 % ash and 12.99 % carbohydrate. Sensory evaluation on the color and shrimp odor of dried product comparing to the freeze dried unhydrolysed cooking water product showed that the freeze-dried hydrolysate obtained higher scores in color and odor. However, sensory evaluation of the products after dissolving in water revealed that neither the hydrolysated nor unhydrolysed products had the significant differences in color, shrimp odor, sweet taste, bitter taste and overall flavor.