Aqueous extraction processing (AEP) of soy is a promising green alternative to hexane extraction processing. To improve AEP oil yields, experiments were conducted to probe the mechanisms of oil release. Microscopy of extruded soy before and after extraction with and without protease indicated that unextracted oil is sequestered in an insoluble matrix of denatured protein and is released by proteolytic digestion of this matrix. In flour from flake, unextracted oil is contained as intact oil bodies in undisrupted cells, or as coalesced oil droplets too large to pass out of the disrupted cellular matrix. Our results suggest that emulsification is an important extraction mechanism that reduces the size of these droplets and increases yield. Protease and SDS were both successful in increasing extraction yields. We propose that this is because they disrupt a viscoelastic protein film at the droplet interface, facilitating droplet disruption. An extraction model based on oil droplet coalescence and the formation of a viscoelastic film was able to fit kinetic extraction data well.