Peony seed dreg protein (PSDP) was hydrolyzed by proteases secreted by Pseudoalteromonas sp. CSN423. This hydrolysate exhibited excellent antioxidant capability after passing through a 3 kDa ultrafiltration membrane. The antioxidant peptides further purified by size-exclusion chromatography scavenged 2, 2-diphenyl-1-picrylhydrazyl (DPPH∙) (73.0 ± 1.46%) and hydroxyl radicals (∙OH) (81.17 ± 3.69%), protected DNA from oxidative injury, and displayed an oxygen radical absorbance capacity (ORAC) of 4.04 ± 1.11 μmol TE/mg. Furthermore, the antioxidant peptide inhibited apoptosis by inhibiting the production of reactive oxygen species (ROS) and the decrease of mitochondrial membrane potential in H2O2-induced RAW264.7 cells. We identified four major peptides such as YFPF, ECCASLAPL, YVSLK, and YFEM by using mass spectrometry. YFPF showed a potent ∙OH scavenging capability of 75.30 ± 1.08%. ECCASLAPL exhibited higher DPPH∙ scavenging capability (87.20 ± 1.03%) than glutathione (GSH) (49.50 ± 1.50%). Moreover, the peptide YVSLK exhibited the highest ORAC of 2.52 ± 1.20 μmol TE/mg of the identified peptides. This work highlights that the peptides from PSDP might have potential uses in cosmetics, functional foods, and drug development.