Soy consumption has been associated with potential health benefits in reducing chronic diseases. These physiological functions have been attributed to soy proteins or more commonly to bioactive peptides. Thus, more studies are required to identify these bioactive peptides, and elucidate their biological mechanisms of action. In the present study, a novel peptide iglycin was purified from soybean seeds with a molecular mass of 3.88 kDa. Thereafter, iglycin reduced fasting blood glucose and restored insulin sensitivity of C57BL/6J mice on a high-fat diet with increased phosphorylation of insulin receptor substrate 1 (IRS1) and AKT in adipose tissue. Furthermore, it improved glucose uptake, induced translocation of intracellular GLUT4 to plasma membrane and activation of insulin signaling in adipocytes under insulin-resistant condition. In addition, it decreased reactive oxygen species production, lipid peroxidation and inhibited adipocyte apoptosis with improved mitochondrial function as evidenced by up-regulation of succinate dehydrogenase activity, mitochondrial membrane potential and intracellular ATP store. These data suggested that iglycin ameliorated insulin resistance via activation of insulin signaling, which was associated with inhibition of oxidative stress, adipocyte apoptosis, and improvement of mitochondrial function.