The objective of this study was to evaluate the effects of steam pelleting of diets containing graded levels of raw, full-fat soybean meal (RSBM) on the chemical properties and feeding values of the diets. Samples of diets with steam- or non-steam-pelleted as well as the mash containing varying levels of RSBM were subjected to detailed chemical analysis. As a result of this study, trypsin inhibitor (TI) concentrations in the diets ranged between 4,153 and 10,484 TIU/g. Amino acid concentrations were higher in the non-steam-pelleted and mash diets than the steam-pelleted diets. A 4 × 2 factorial arrangement (RSBM: zero, 10, 20 or 30%, equivalent to zero, 30, 60, and 90 g/kg of diet, respectively, and non-steam- or steam-pelleted diets) was used while feeding broiler chicks (zero to 14 d of age). Each treatment was replicated 6 times with 8 birds per replicate. As a result of this study, there was no difference (P > 0.05) in mortality of birds among the groups. Feed intake (FI) (P < 0.05) and body weight gain (BWG) (P < 0.001) decreased with increasing levels of RSBM. Birds fed on steam-pelleted diets gained less (P < 0.001) weight than birds on the non-steam-pelleted diets, but the FI was not significantly (P > 0.05) different. The FCR was negatively affected (P < 0.05) by increasing levels of RSBM. There was no interaction effect between RSBM and pelleting method on the FI, BWG, or FCR of birds. The weight of the pancreas (P < 0.001) and duodenum (P < 0.01) increased with a rise in the level of RSBM in diets. Non-steam pelleting increased (P < 0.05) the pancreatic protein content, whereas the activity of chymotrypsin was reduced (P < 0.01) when the RSBM level was increased. Birds fed with RSBM-free diets had thicker muscle, longer villi, wider villus surface area, and higher villus to crypt depth ratios than birds on the other diets, but these differences were not significant. It can be concluded that steam pelleting of diets containing RSBM is inadequate to reduce the adverse impact of TI on chicks.