The present study was conducted to ascertain the beneficial effects of bioactive peptides on the oxidative stability and functional properties of beef nuggets. In this study, milk casein protein hydrolysates were extracted and incorporated into beef nuggets which were then subjected to different assessment parameters including oxidative stability, functional capability as well as microbial and physico-chemical quality tests were performed for determining the meat quality at different storage periods. The casein protein hydrolysate powder (CPH) was added at different concentrations in nuggets CPH 2%, 4%, 6% and 8%, with reference to storage period of 0, 5, 10 and 15 days at 4 °C. The results regarding total phenolic contents (TPC) and DPPH free radical scavenging assay showed a significant increased with respect to CPH powder and significantly decreased with respect to storage interval. The TVBN, TBARS and POV of the CPH powder incorporated raw beef nuggets also differed significantly within groups with storage time. Higher POV and TBARS were noticed in the CPH 8% incorporated beef nuggets. However, the raw beef nuggets that were made by the incorporation 8% CPH powder, maintained significantly lower level of TBARS at the end of the storage period in contrast with the levels of the control (CPH 0%). The results of the pH and Hunter color test also showed a significant difference with respect to different groups. The microbiological analysis of beef nuggets showed a significant decrease in the level of both the total aerobic and coliform counts and also indicated a decreasing trend in the level of contamination by these bacteria within the groups. This depicted that the casein protein hydrolysate powder (CPH) or simply, the peptide powder has the strong ability to decrease lipid oxidation and related shelf-life retarding natural processes occurring in the meat. It can also greatly enhance the functional properties of the raw meat (beef) and meat products. Thus, it is seen that the bioactive peptides (BAP's) are a key factor in improving the oxidative stability and functional properties of beef nuggets.