Obestatin, a 23-amino-acid peptide, is derived from the preproghrelin precursor. Obestatin was identified in 2005 as a hormone regulating food intake and energy, and having opposite effects to those of ghrelin. However, as studies have progressed, many disputes on the physiological function of obestatin have emerged. The food intake suppressive effects of obestatin have not been replicated in many studies. Nonetheless, many biological roles of obestatin have been revealed, and obestatin is thought to be associated with a variety of biological functions such as feeding, drinking, incretion, memory, and sleep, and with neuropsychiatric manifestations. The biological effects of obestatin will be reviewed in this article.