Spray drying is commonly used to manufacture food and dairy powders at industrial scale. Bioactive peptides, as hydrolysis products from various food proteins, are gaining interest due to their biological functionality including immunomodulation, antimicrobial, and antioxidant properties. This article reviews several bioactive peptides/hydrolysates from different food sources, focusing on their processing and final powder characteristics. Additionally, we propose a strategy for encapsulation of food peptide/hydrolysate via spray drying. The identification of suitable drying parameters and/or formulation could help overcome the limitations associated with the current processing of food peptides. (C) 2019 The Society of Powder Technology Japan. Published by Elsevier B.V. and The Society of Powder Technology Japan.