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With recent genetic advances in development of gossypol-free cotton varieties, there is interest in retrieving undamaged, dehulled cottonseed kernels for consumption. The objective of the described work was to develop a process for dehulling fuzzy cottonseed to render a high percentage of undamaged seed meats. A series of processing machines were optimized, and multiple processes were tested to identify the suite of processes that provided the highest yields. The final process includes steam conditioning, cracking and dehulling using roller mills, and finally separating kernels from hull material using a roller separator and air aspirator. The reintroduction of un-dehulled seed to the roller mills for a second pass significantly increased the final yield of undamaged seed meats. Lab scale tests show that yields of 65% to 70% can be obtained using this process, representing a significant increase over conventional dehulling.