Synthesis of Bz-Arg-Gly-NH2 (N-benzoylargininylglycinamide) [a precursor dipeptide of RGDS (Arg-Gly-Asp-Ser)] catalysed by protease in water/organic co-solvent systems was studied. Starting substrates wereN-benzoyl-L-arginine ethyl ester hydrochloride (acyl donor) and glycinamide (nucleophile). Acetonitrile was selected as the organic solvent. Alcalase, an industrial alkaline protease, was applied to the synthesis of the target dipeptide. The conditions of the synthesis reaction were optimized by examining the effects of several factors, including water content, temperature, pH, molar ratio of the substrates and reaction time, on the yield of Bz-Arg-Gly-NH2. The optimum conditions were established to be pH 10.0, 45 °C, in acetonitrile/0.1 M Na2CO3/NaHCO3 buffer system (90:10, v/v) for 1 h with a dipeptide yield of 82.9%.