This chapter aims to provide an in-depth understanding of enzymatic protein modification as a sustainable and effective approach to improve the utilization of plant-based proteins in the food industry. The growing demand for plant-based proteins is driven by increasing concerns over environmental sustainability, animal welfare, human health and evolving dietary preferences. However, plant proteins reportedly exhibit inferior nutritional and functional properties compared to their animal-derived counterparts, primarily due to limitations in protein digestibility, amino acid composition and physicochemical characteristics. Enzymatic modification has become a viable approach to overcome these drawbacks. Enzymatic treatments have been found to improve structural, functional and bioactive properties of plant proteins and enhance their applicability in diverse food systems. This chapter explores enzymatic modifications of plant proteins, covering structural and functional enhancements through hydrolysis and cross-linking. Commonly used enzymes, enzyme-substrate interactions and their impact on protein structure, molecular weight, solubility, emulsification, foaming, gelation, and digestibility are discussed. Generation of bioactive peptides and their health benefits are covered, along with their applications in food systems. Finally, challenges have been assessed, with insights into prospects, upcoming hybrid technologies and other emerging applications.