Peanut Butter Marshmallow Squares

It just wouldn’t be Christmas without Peanut Butter Marshmallow Squares. Some may call them Confetti Squares, and others call them Peanut Butter Squares. But no matter what you call them, the recipe is similar and delicious.

Peanut Butter Marshmallow Squares


This is a recipe our twin teenagers ask for every Christmas. The requests usually start around Thanksgiving, knowing that is when I start planning my Christmas baking list.

I have fond memories of Peanut Butter Marshmallow Squares from when I was young. My grandmother and my aunts made these for Christmas every year. They were also served at family gatherings, bridal showers, and baby showers. They may have even been served at funerals. (My mom’s family is from a small town in Quebec and I am sure every family in town enjoys these squares.)

What Are The Ingredients For Peanut Butter Marshmallow Squares?

There are only four ingredients in this recipe and it is very easy to make.

  • Peanut Butter is one of the main ingredients.
  • Butter. This adds a touch of richness and helps to melt the peanut butter.
  • Butterscotch Chips. These add sweetness and complement the peanut butter.
  • Coloured Marshmallows. You could use plain white marshmallows but these squares just aren’t the same without the fruit-flavoured coloured marshmallows. They look prettier too.

Tips For Making Peanut Butter Marshmallow Squares

When making these squares, you want to cool the mixture before adding the marshmallows. If it doesn’t cool enough the marshmallows will melt.

But you also don’t want to cool too much or the marshmallows won’t distribute evenly. I usually add only five or six marshmallows to the peanut butter mixture after cooling to make sure they don’t melt, before adding all the marshmallows.

How To Serve These Squares?

After setting, the squares can be cut into smaller squares and refrigerated until ready to serve. They are great on their own or served with hot chocolate, coffee, or tea.

Peanut Butter Marshmallow Squares make a great gift at Christmas as well. Cut them into squares and add to a platter with Christmas cookies for gifts or cookie exchanges.

Storing the Squares

Once cooled, the squares should be stored in an air-tight container in the fridge. Serve them straight out of the fridge on a platter or in a cookie tin.

They can also be frozen for up to three months. Wrap them in parchment or waxed paper and store them in an air-tight container until ready to use. Thaw in the fridge overnight.


Peanut Butter Marshmallow Squares

Peanut Butter Marshmallow Squares

Some may call them Confetti Squares, and others call them Peanut Butter Squares. But no matter what you call them, the recipe is similar and delicious.
5 from 2 votes
Prep Time 10 minutes
Cook Time 10 minutes
chilling and cooling 2 hours 10 minutes
Total Time 2 hours 30 minutes
Course Dessert
Cuisine Canadian
Servings 12 squares


  • ½ cup butter
  • 1 cup peanut butter
  • 2 packages butterscotch chips (350grams each)
  • 1 package colored marshmallows


  • In a large pot, over low heat, melt the butter and peanut butter together. Stir until smooth and melted.
  • Add in butterscotch chips and stir until melted. Mixture should be smooth.
  • Remove from heat and allow to cool for 5 to 10 minutes.
  • Add marshmallows, a little at a time, and stir thoroughly, but carefully, you don't want to melt the marshmallows
  • Pour into a parchment lined 13x9 pan and refrigerate until cold and firm, about 2 hours.
  • Cut into squares and store in the fridge in an airtight container.



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