Many researchers have reported that food proteins and their peptides expressed a variety of functions in the body, including a reduction of blood pressure, modulation of immune cell functions, and regulation of nerve functions. However, food-derived proteins and peptides also play important roles in the intestinal tract before being absorbed. For example, some of the proteins and peptides can regulate the activity of digestive enzymes in the intestinal tract, thereby modulating the nutrient absorption in the intestines. These proteins and peptides have been used for functional foods with blood glucose- and blood cholesterol-lowering effects. Enhancement of the intestinal calcium absorption by casein-derived peptides is another example, such peptides being used as functional food ingredients. We have recently observed that certain milk peptides might stimulate the calcium transporter in intestinal epithelial cells. Carnosine, a dipeptide contained in skeletal muscles, was observed to suppress the secretion of inflammatory cytokines by intestinal epithelial cells that had been exposed to oxidative stress. Understanding the behavior of dietary proteins and peptides in the intestines is important for designing functional foods with physiological functions.