A process for preparing soybean milk and okara, in particular, relating to improvement in pulverization of impregnated soybeans. The process includes carrying out pulverization of impregnated soybeans by the steps of cutting the impregnated soybeans with a device having rotating blade(s) to provide particles having an average diameter of less than about 100 .mu.m; grinding the obtained soybean particles with a device which exerts frictional shearing stress to provide an aqueous soybean slurry; and separating the water-soluble portion of the slurry from the water-insoluble portion to provide soybean milk and okara. The soybean milk and okara obtained possess a pleasant flavor and mild taste.