Processes for producing a novel soy functional food ingredient are provided. A soy material containing less than 65% soy protein by weight on a moisture-free basis is hydrated. In one aspect of the invention the soy material is hydrated with at least 2 parts of water per 1 part of soy material, by weight. At least a portion of soy protein in the hydrated soy material is then partially denatured. In one aspect of the invention, a hydrated soy material containing at least 2 parts of water per 1 part of soy material, by weight, is denatured by treating the hydrated soy material at a temperature of from about 75.degree. C. to about 160.degree. C. In another aspect of the invention, a hydrated soy material is denatured by subjecting the hydrated soy material to shear at a temperature of at least 40.degree. C. The partially-denatured hydrated soy material is then dried so the dried soy material has a nitrogen solubility index of from about 30% to about 80% and a protein content of less than 65% by weight on a moisture-free basis.