Alcalase hydrolysis affects the properties of coconut proteins in terms of the stability and rheology of virgin olive and sunflower O/W emulsions in aqueous PB. The O/W emulsion made from CPH with a suitable DH (8.25–10.17%) had a high surface activity, zeta potential and a small Z–average diameter, which led to a higher emulsifying stability than the emulsions made from intact CPC. The CPH preparations at a DH of 8.25–10.17% contained proteins or peptides capable of forming and stabilizing emulsions, whereas less stable O/W emulsions were obtained with CPHs with a DH of 11.04–14.22%. The emulsions obtained with olive and sunflower oil were sensitive to coagulation and flocculation. Additionally, hydrolysis of CPC with Alcalase produces CPHs with modified rheological properties. The oil phase had an influence on the stability and rheological properties of the O/W emulsions stabilized by each CPH preparation. Olive oil yielded more viscous emulsions than sunflower oil, but with a higher shear thinning effect. Coconut protein hydrolysates with such modified properties may therefore be most effective at stabilizing emulsions since they are fairly viscous, where droplet flocculation and creaming are not a major problem.