This study was conducted to investigate anti-inflammatory and wrinkle improvement effects of Sophora flavescens Aiton water extracts (SWE) treated with proteolytic enzyme. The antioxidant activity of proteolyzed Sophora flavescens Aiton water extracts (SWE-E) showed increased total polyphenol content, total flavonoid content, electron-donating ability and ABTS+ free radical scavenging activity compared with SWE. To investigate the anti-inflammatory effects, the inhibition of NO production was assessed in RAW 264.7 cells induced by LPS. The SWE-E showed an increased anti-inflammatory effect compared with SWE at the same concentration. The anti-wrinkle effect was evaluated by the rate of collagenase and elastase inhibitory activity, which was determined by the MMP-1 mRNA measured in human dermal fibroblast (HDF) by quantitative polymerase chain reaction (qPCR). Collagenase and elastase are important enzymes that play roles in wrinkle formation, and SWE-E showed a significantly higher collagenase inhibition rate than non-treated extracts. The MMP-1 mRNA in HDF cells decreased in a dose-dependent manner. Moreover, SWE was shown to be a non-irritant in the BCOP assay, which is an alternative method to in vivo eye irritation test. Taken together, these results suggest that proteolytic enzyme could enhance the antioxidant activity, as well as the anti-inflammatory and anti-wrinkle effects of SWE, and that SWE-E could be used as a cosmeceutical ingredient.