During the intraerythrocytic phase of the life cycle, malaria parasites hydrolyze host proteins. Hemoglobin is processed into individual amino acids, which are used for parasite protein synthesis. Erythrocyte cytoskeletal proteins are cleaved during erythrocyte invasion and rupture. A number of plasmodial proteases that appear to be responsible for key cleavages of host proteins have recently been characterized. Hemoglobin hydrolysis appears to be mediated by acid cysteine, aspartic, and metalloproteases, and then a neutral aminopeptidase. Cysteine and aspartic proteases that hydrolyze hemoglobin can also cleave host cytoskeletal proteins, and these and additional proteases likely cleave the cytoskeleton to mediate erythrocyte rupture and invasion. Various protease inhibitors block parasite development, suggesting that key proteases may be appropriate chemotherapeutic targets. Recent advances in the characterization of plasmodial proteases should facilitate the analysis of the specific roles of these enzymes and expedite the progress of drug discovery efforts directed against them.