The objective of this research was to verify the physiological and seed health quality of peanut seeds during the processing phase. Seeds of cultivar Tatu Vermelho harvest 1999/2000, obtained during processing phases (before cleanness, gravel separator, peeler, grader, densimetric and electronic selection). The following parameters of seed quality were evaluated: seed water content, germination, seed vigor (accelerated aging, cold test, eletrical conductivity and field emergence) and health test. The experimental design was to completely randomized with four replications. The means were compared using Tukey?s test (P ≥ 5%). Results of this research suggest that studies should be conducted to increase the efficiency of peanut seeds processing in order to improve physical and seed health quality, reducing mechanical damage, since the processing is an essential procedure of seed production.