A process for industrially advantageously producing a dipeptide via a convenient pathway starting with less expensive and easily available materials is provided. A dipeptide is produced from an L-amino acid amide and an L-amino acid by using a culture of a microbe capable of synthesizing the dipeptide from the L-amino acid amide and the L-amino acid, microbial cells separated from the culture or a treated microbial cell product from the microbe. An L-amino acid amide hydrolase is obtained from a microbe belonging to the genus erwinia, genus Rhodococcus, genus Chryseobacterium, genus Micrococcus, genus Cryptococcus, genus Trichosporion, genus Rhodosporidium, genus Sporobolomyces, genus Tremela, genus Torulaspora, genus Sterigmatomyces or genus Rhodotorula. The hydrolase catalyzes a reaction that produces a dipeptide from an L-amino acid amide and an L-amino acid.