Display omitted •Common bean milk and yogurt were developed, and their bioactivities were assessed.•Phenolics and peptides were characterized in bean products as bioactive compounds.•Yogurts contained more antioxidant and anti-inflammatory compounds than milks.•Two γ-glutamyl dipeptides were first reported of their bioactive activities. Common bean milks and their corresponding probiotic yogurts were developed and subjected to simulated gastrointestinal digestion before characterization and assessment of bioactivities. Only digestates fractions of molecular weight <10 kDa showed strong cellular antioxidant activity and anti-inflammatory activity as demonstrated in suppressed TNF-α-induced IL-8 secretion in Caco-2 and HT-29 cell lines. Phenolic and peptide fractions were purified from the digestates. Yogurts showed significantly stronger cellular antioxidant and anti-inflammatory activities compared to their corresponding milks because of the significantly higher total and individual phenolic and peptide contents (P < 0.05). Eleven phenolic compounds and five amino acids/peptides were identified in the phenolic and peptide fractions, respectively using LC-MS/MS. Among them, two γ-glutamyl-dipeptides are reported for the first time for their antioxidant and anti-inflammatory activities. Peptide fractions of yogurts containing higher concentrations of γ-glutamyl-peptides showed stronger anti-inflammatory activity in Caco-2 cells than in HT-29 cells, suggesting the involvement of a peptide transporter PepT1.