In this research, biochemical composition and nutritional profiling of Indian squid (Uroteuthis duvauceli) have been investigated. Essential nutrients for human health were identified and isolated from the squid protein, which could be utilized as functional food ingredients in nutraceuticals and pharmaceuticals industries. For commercial production of antioxidant peptides from Indian squid, suitable protease ie., papain has been identified and its hydrolysis conditions such as enzyme/substrate ratio, pH and time were optimized using response surface methodology (RSM). Anticancer, anti-ulcer and anti-inflamation properties of characterized antioxidant amino acids pave the way to explore this modestly exploited resource to develop new arena of drugs or nurtraceuticals for curing cancer, ulcer and inflammation.