Bacteria colonies from gut homogenates of fifth instar velvetbean caterpillars (Lepidoptera: Noctuidae) were subjected to antibiotic sensitivity experiments using discs containing 22 antibiotics. The antibiotic tetracycline provided the best results, followed by chloramphenicol. Tetracycline also provided higher inhibition of colony forming units than chloramphenicol and was therefore provided to the caterpillars in increasing diet concentrations to assess the contribution of gut bacteria to their digestion and development. The activity of proteases (general), serine-proteinases and lipases were significantly suppressed by tetracycline. Concentration–inhibition curves were successfully established for tetracycline and this antibiotic was effective in suppressing them, particularly serine-proteinases, suggesting that gut bacteria may significantly contribute with lipid- and mainly protein-digestion in velvetbean caterpillars. Increased diet concentrations of tetracycline led only to mild increase in insect mortality (ca. 20%), with the surviving insects showing faster development (≤4 days) and higher pupa weight (<0.04 mg) with increased concentrations of tetracycline. Therefore, the gut bacteria inhibited by tetracycline does not seem to play a crucial role in the survival and development of the velvetbean caterpillar, but may be important in the adaptation of this pest species to hosts rich in protease inhibitors, such as soybean.