Lobster protein hydrolysates (LPH) were produced by an enzymatic process using a proteinase Alcalase, and a chemical process at strong alkaline condition (pH of 14), from rock lobster head (RLH), respectively. The chemical process recovered about 30% more protein than the enzymatic process (84.9% recovery of total protein in RLH by the chemical process and 54.5% recovery of total protein in RLH by the enzymatic process). The emulsifying capacity of LPH produced by the chemical process (69.7 m2/g) was significantly higher than the emulsifying capacity of the LPH produced by the enzymatic process (20.7 m2/g), and also exceeds the emulsifying capacity of cow gelatine (50.3 m2/g), a commercial emulsifier in the food industry. LPH produced by the chemical process possess 30.3% essential amino acids. This content is comparable with the essential amino acid content of fish protein, a commonly recognized food resource for essential amino acid supplement for human. The content of heavy metals, including inorganic arsenic, of LPH is lower than the standard levels regulated by Food Standard Australia and New Zealand (FSANZ). These results demonstrated the potential value of LPH used as a safe emulsifier with significant nutritional value for the food industry.