Hydrolyzed milk proteins include hydrolyzed whey protein and hydrolyzed casein. Hydrolyzed whey protein can be divided into partial （moderate） hydrolyzed whey protein and extensive hydrolyzed whey protein. Hydrolyzed milk protein is used as raw material in infant formula for special medical purpose in China， while partially hydrolyzed milk protein can be used as raw material for standard infant formula in Europe， America， Australia， New Zealand， Japan and Korea. Extensively hydrolyzed milk protein can only be used as raw material for special medical use formula food. The quality of different types of hydrolyzed milk protein ingredients provided by different manufacturers varies a lot. And there is no one-to-one correspondence between their physiological effects related to allergy and gastrointestinal symptoms in healthy infants and infants with high allergy risk. This article reviews the progress of research and regulatory management of hydrolyzed milk protein infant formula powder on allergy and functional gastrointestinal disorders of infants and toddlers.