If you grew up in Canada, chances are you’ve had these Peanut Butter Marshmallow Squares at least once during the holidays. They’re chewy, sweet, peanut-buttery perfection — one of those easy no bake desserts that takes no time at all but tastes like pure nostalgia. This recipe is straight out of my mom’s Company’s Coming Cookbook that is at least 25 years old, so you know this recipe is good.
I’ve heard these treats referred to as many different names: confetti squares, peanut butter squares, butterscotch squares, marshmallow squares; the list goes on! We call them Peanut Butter Marshmallow Squares, but however you choose to refer to them, chances are they are all made fairly similar using the same five ingredients: butter, butterscotch chips, peanut butter, vanilla and mini marshmallows. Want some other easy no bake desserts? Try my Biscoff No Bake Cheesecake or my Pumpkin Trifle.
😍 Why You’ll Love These Peanut Butter Marshmallow Squares
Nostalgic and sweet: that perfect mix of peanut butter, butterscotch, and marshmallow that instantly takes you back to childhood.
No-bake perfection: comes together in minutes with zero oven time required.
Soft and chewy: every bite has that creamy, melt-in-your-mouth texture with pockets of fluffy marshmallow.
Foolproof recipe: just five ingredients and simple steps; no baking skills needed.
🥜 Ingredients You’ll Need To Make These Peanut Butter Marshmallow Squares
Butter: brings richness and that perfect melt in your mouth texture, helping everything come together into a smooth, creamy base.
Butterscotch chips: sweet and buttery, they melt into a golden, velvety mixture that defines the flavour of this classic treat.
Peanut butter: adds a salty-sweet balance and a touch of creaminess that plays perfectly with the butterscotch.
Mini marshmallows: soft, chewy, and perfectly sweet. Freezing them first is the secret to keeping their shape so you get those fluffy pops in every bite. I like to use one bag of white and one bag of rainbow, but either/or works!
Vanilla extract: rounds out all the flavours with a hint of warmth and depth.
✔ How To Make These Peanut Butter Marshmallow Squares
To make these Peanut Butter Marshmallow Squares, begin by placing the mini marshmallows in the freezer for 35–45 minutes. This helps them keep their shape and prevents melting when mixed with the warm peanut butter mixture.
Line an 8×8 or 9×9 inch baking pan with parchment paper and set aside.
In a large pot over low to medium heat, add the butterscotch chips and stir often until about 75% melted. Add in the peanut butter and continue stirring for another 2 minutes until smooth and fully combined.
Next, add the butter and vanilla extract, stirring continuously on low heat until the mixture is fully melted, smooth, and glossy. Remove the pot from heat and allow the mixture to cool for 5 minutes.
Take the marshmallows out of the freezer and gently fold them into the peanut butter mixture until evenly coated.
Pour the mixture into the prepared baking pan, spread it evenly, cover with plastic wrap, and refrigerate for at least 1½ hours or overnight. Once set, slice into squares and enjoy. See the recipe in action here.
🗒 Variations
Mix up the chips: Try half butterscotch and half white chocolate, or go for peanut butter chips for a double dose of nuttiness.
🗒 Substitutions
Peanut butter: Smooth or crunchy both work great.
Butterscotch chips: Can’t find them? White chocolate, caramel, or peanut butter chips make solid stand-ins.
Butter: Salted is classic, but unsalted works too; just add a small pinch of salt to balance the sweetness.
Marshmallows: Use white, rainbow, or a mix of both. If you only have large ones, just cut them into quarters before freezing.
🤔 FAQ’S
Can I use a crunchy peanut butter?
You sure can! It all depends on the overall texture you’re going for, but yes, you totally could.
Can I cut this recipe in half to make a smaller batch?
Yes! This recipe works really well if you want to make a half batch.
Can I swap the chips?
Try white chocolate or a mix of butterscotch and peanut butter chips for a fun twist.
Do I have to freeze the marshmallows first?
Yes; it’s one of the best little tricks for this recipe! Freezing them keeps the marshmallows from melting into the warm peanut butter mixture, so you get those distinct chewy bites in every square.
Can I microwave the mixture instead of using the stove?
You can! Heat the butterscotch chips, peanut butter, and butter together in 30-second bursts, stirring after each one until smooth. Just make sure not to overheat; the mixture should be warm and pourable, not piping hot.
🍴 Leftovers? Lucky you.
These squares will keep fresh in an airtight container for up to 7 days. They also freeze like a dream; I recommend cutting them into squares, and then adding them to an airtight container. These will last up to 4 months in the freezer. When you want some, just take them out 2-3 hours before serving.
👩🏻🍳 Hungry For More?
If you enjoyed my Peanut Butter Marshmallow Squares, take a peek at a few of my personal favourite no bake desserts down below you’ll likely love:
- Biscoff No Bake Cheesecake
- Easy Apple Cake
- Chocolate Loaf Cake
- Ginger Molasses Cookies
- Chocolate Muffins
- Pumpkin Trifle
💌 Let’s Stay Connected
Keep in touch with me on Instagram, TikTok, and Pinterest! If you do make this recipe (or any recipe of mine) don’t forget to leave a review.
Peanut Butter Marshmallow Squares
Ingredients
- 1 300 gram bag butterscotch chips
- 1 cup peanut butter, smooth
- 1/2 cup butter, unsalted
- 1 250 gram bag mini marshmallows, rainbow
- 1 tsp vanilla extract
Instructions
- Place the mini marshmallows in the freezer for 35-45 minute before preparing this recipe. This will help the marshmallows hold their shape and avoid melting when added to the butterscotch and peanut butter mixture.
- Line an 8×8 or 9×9 inch pan with parchment paper and set aside.
- To a large pot set to low/medium heat add your butterscotch chips and begin melting, stirring often to avoid burning.
- Once the butterscotch chips are about 75% melted (which will take about 2-3 minutes), add your peanut butter and let cook for another 2 minutes on low heat, stirring often.
- Add your butter and vanilla and continue to stir on low heat until everything is incorporated and smooth.
- Remove mixture from heat and let cool for 5 minutes.
- Grab the marshmallows from the freezer and add them to the peanut butter mixture. Gently fold the ingredients together until fully incorporated.
- Pour into your prepared baking dish, spread evenly, cover with plastic wrap and refrigerate for at least 1½ hours, or overnight.
- Slice, serve and enjoy.
Nutrition
Nutrition information is automatically calculated, so should only be used as an approximation.
This worked exactly as written, thanks!
This worked exactly as written, thanks!
In your video u have white and mix marshmallows. But the recipe shows 1 bag. In video is it doubled ?
Gonna make this soon. Can’t wait. Love this