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Enzyme‐assisted aqueous extraction of oil from oilseeds is a relatively recent technique. In the present study, peanut oil was extracted under optimized aqueous extraction conditions using Protizyme^™, which is predominantly a mixture of acid, neutral, and alkaline proteases. The optimal conditions were: enzyme concentration of 2.5% (w/w) in 10 g of peanut seeds, pH 4.0, 40°C, and 18 h incubation with constant shaking at 80 rpm. Centrifuging the mixture at 18,000 × g for 20 min separated the oil with a recovery of 86–92%. The merits of this process over existing solvent extraction and/or mechanical pressing methods are discussed.