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, 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.)

There are only four ingredients in this recipe and it is very easy to make. I have made these on the stovetop but I have also made them in a slow cooker and my Instant Pot. Any type of pot or appliance that you can melt the butter and butterscotch chips in will work. I have not tried to make them in the microwave, but it may work as well.

When making these squares, you want to be careful to cool the mixture before adding the marshmallows. You don’t want to melt the marshmallow. 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.

After setting, they can be cut into squares and refrigerated or frozen. The squares keep well in the fridge in an airtight container for up to 2 weeks. In the freezer, they will last up to two months in a freezer bag. I place wax paper or parchment paper between layers.

Peanut Butter Marshmallow Squares

Peanut Butter Marshmallow Squares


  • ½ cup butter
  • 1 cup peanut butter
  • 2 packages butterscotch chips
  • 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.
  • Cut into squares and store in the fridge in an airtight container.


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