This study investigated in vitro antioxidant activity of Lactobacillus plantarum CD101 and its effect on antioxidant peptides formation in fermented sausage. The antioxidant substances of L. plantarum CD101 were mainly distributed on the cell surface and extracellular secretions. L. plantarum CD101 affected the acidification and proteolysis during the fermentation. Combined with electrophoresis and peptide content analysis, these results indicated the effectiveness of the starters in promoting peptide formation, accompanied by a small change in antioxidant activities. Forty-four effective peptides were identified by LC-MS/MS. The masses of the peptides were less than 3 kDa, and their amino acid sequences were between 5 and 27 amino acids in length. Thus, L. plantarum CD101 may be beneficial to inhibit the oxidative rancidity of fermented sausage through its in vitro antioxidant activity, while effectively promoting protein degradation with a weak effect on antioxidant peptides promotion.