Experiments were carried out for the development of a processing method of soybean into full-fat or defatted flour, using two varieties of soybean (kwangkyo produced in Korea and Bragg produced in India) Samples were subjected to dry dehulling, size reduction and wet heat treatment processes to make soybean flours. The quality of soybean flours were evaluated, and the results obtained were summarized as follows. 1. Crude fiber content of dehulled soybean was under 3.0% which indicated satisfactory dehulling, and there was no significant difference in crude fibre content between two varieties. 2. When dehulled soybean was cracked into soy grits by a hammer mill, 98.71∼98.86％ of the soy grit was in the range of 10∼18 mesh which was the optimum size of particle for quick and uniform penetration of heat into the intra-particle air spaces. 3. Moisture content of soy flour after steam treatment at 15 psig for 5 to 30 min was only 0.29∼1.68% which did not hinder the next milling operation. 4. From the color analysis of soy flours, it was observed that the dominant wavelength for all the samples are in a very narrow range from 575 to 581 nm and the color variation was from yellow to yellowish orange. Twenty to twenty five ％ higher reflectance was observed in the defatted flours than full fat flours. The ％ chroma of the defatted flour slightly increased as the duration of steaming of soy grits increased, whereas that of the full-fat flour did not. 5. The protein extractability in the defatted flour at pH 7.6 showed progressive decrease in solubility from 48.40％ (Bragg), 75.20％ (kwangkyo) for untreated flours to 9.75％ (Bragg), 26.27％ (kwangkyo) for 30 min steaming. But Kwangkyo variety showed twice higher protein extractability than Bragg variety.