These Peanut Butter Marshmallow Squares – AKA Confetti Squares are one of my favourite nostalgic childhood treats. Creamy peanut butter and butterscotch chips mixed in with rainbow coloured marshmallows are truly a match made in heaven!

Close up view of the best ever peanut butter butterscotch squares with colourful marshmallows.

**This post was originally published December 13, 2017 and updated July 30, 2024**

PEANUT BUTTER MARSHMALLOW SQUARES

You know that dessert your grandma brought to every potluck in the ’90s that somehow disappeared in five seconds flat?

Yep, we’re talking about Peanut Butter Marshmallow Squares—the ultimate no-bake, gooey, rainbow-hued butterscotch mixture blast from the past.

These babies are chewy, sweet, salty, and colorful—basically, everything you could ever want in a dessert. You only need a handful of ingredients (and no oven), which means they’re dangerously easy to whip up at any time.

SIMPLE INGREDIENTS YOU NEED FOR THE PEANUT BUTTER MARSHMALLOW SQUARES RECIPE -AKA CONFETTI SQUARES

You will need the following ingredients listed below to make these peanut butter butterscotch marshmallow squares (the exact measurements, nutritional information and full recipe are in the recipe card at the bottom of this post):

Peanut Butter (Creamy or Crunchy) – for this recipe my grandmother used to always use creamy peanut butter. Can also use natural peanut butter, unsalted peanut butter, or crunchy peanut butter.
Butterscotch Chips – I typically use the Chipits butterscotch chips. There are lower sugar options like Lilys butterscotch candies, and I’m sure you could also find vegan butterscotch chips as well! Some individuals who have tested out this recipe have also substituted some of the butterscotch chips for regular chocolate chips to cut down the sweetness.
Butter – regular unsalted butter. You could try this recipe using vegan butter as well if you like or if you’re sensitive to dairy.
Rainbow Marshmallows – can also use regular mini white marshmallows.
Vanilla extract
Optional – Rice Krispies for a crunch, brown sugar, dark chocolate chips, coconut, etc.

HOW TO MAKE PEANUT BUTTER CONFETTI SQUARES

In a large pot over medium-low heat, combine the butterscotch chips, peanut butter and butter. Stir frequently until the mixture is completely melted.

Let cool, and fold in marshmallows and vanilla extract quickly. I like to throw my marshmallows in the freezer for 10 minutes before this step to prevent them from melting all together.

Pour the mixture into a lined 8×8 or 9×9 inch square pan and spread evenly. Refrigerate for 1 hour minimum to set, then cut into bars. Store in refrigerator or freezer in an airtight container (I actually prefer my confetti bars straight from the freezer).

Pro Tip: Freeze your marshmallows first. This keeps them from melting when mixed with the warm peanut butter mixture.

Serve them cold or frozen – the peanut butter + chilled marshmallow combo is unreal. Trust me, they’re even better straight from the freezer instead of room temperature.

CAN I USE CRUNCHY PEANUT BUTTER INSTEAD OF SMOOTH IN THESE NO BAKE PEANUT BUTTER MARSHMALLOW SQUARES?

Yes! Crunchy peanut butter will give the squares a little extra texture and nutty bite. Smooth peanut butter makes them creamier, so it really comes down to preference.

CAN I FREEZE THESE PEANUT BUTTER MARSHMALLOW BARS?

Absolutely. Cut them into squares, place them in a single layer on a baking sheet to freeze, then transfer to a freezer bag or container. They’ll last up to 2–3 months. Just thaw at room temp before eating.

WHY ARE MY MINI MARSHMALLOWS MELTING?

If the peanut butter mixture is too hot when you add the marshmallows, they’ll melt into the squares. To avoid this, let the mixture cool slightly before folding in the marshmallows.

Side angle of a confetti squares with a spoonful of peanut butter right beside it.

Other Easy Recipes To Curb A Sweet Tooth!

Close up view of peanut butter marshmallow squares with coloured marshmallows on parchment paper.

Print Recipe Pin Recipe

4.87 from 180 votes

Peanut Butter Marshmallow Squares Recipe

These classic Peanut Butter Butterscotch Marshmallow Squares are one of my favourite nostalgic childhood treats. Creamy peanut butter and butterscotch chips mixed in with rainbow coloured marshmallows are truly a match made in heaven!

Prep Time15

Chill Time1

Total Time1 15

Course: Christmas

Cuisine: American

Servings: pieces

Calories: 238kcal

Author: Bailey Campbell

Ingredients

1 package butterscotch chips 300g package (I used Chipits)
1 cup crunchy or creamy peanut butter
½ cup butter
1 package rainbow miniature marshmallows 250g package
1 tsp vanilla extract

Instructions

Put bag of marshmallows in the freezer and line an 8×8 pan with parchment paper.
Melt butterscotch chips, peanut butter, and butter in a medium saucepan over low heat, stirring until smooth. Remove from heat, and let cool to ensure the marshmallows don't melt in next step.
Quickly fold in vanilla and marshmallows.
Spread mixture into 8×8 or 9x9 inch pan and gently spread with a spatula or spoon.
Refrigerate until firm. Approximately 1 hour.
Remove from pan and slice into squares. Store squares in refrigerator or freezer.

Notes

Nutrition

The nutrition information provided is calculated based on industry-standard software and should be used as a general guide only. The information may vary depending on ingredient substitutions, cooking techniques, and individual serving sizes. It is the responsibility of the reader to ensure the accuracy and appropriateness of the nutritional information provided. Always consult a qualified healthcare provider for personalized medical or nutritional advice.

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183 Comments

Had tons of fun making this with my kids. Simple yet absolutely delicious 😋 😍

admin says:

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Hi Brittany,

So glad to hear! Thank you for the amazing review!! 🙂

Had tons of fun making this with my kids. Simple yet absolutely delicious 😋 😍

Can you freeze these delicious squares?

admin says:

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Hi Marg!

Yes you sure can! I actually prefer to eat them out of the freezer!! 🙂

Can you freeze these delicious squares?

I totally forgot the vanilla 😢 in fridge rite now hopefully Thier still yummy! Was so excited to find this recipe reminds me of Christmas years ago with my gramma!

My husband and I ❤ them. I do cut them in small pieces. Next time will add some Rice Krispies. Soooo easy to make.

admin says:

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Hi Elaine,

Thank you so much for the 5 star review! So glad you enjoyed them as much as I do!!
Maste says:

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My son and I are using salted caramel chips and adding broken pretzels. They are oh so yummy!
admin says:

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YUM!!! This sounds amazing!!!

My husband and I ❤ them. I do cut them in small pieces. Next time will add some Rice Krispies. Soooo easy to make.

Love these happy to make them for my family as they were a favorite growing up. I even managed to snag the last bag of coloured marshmallows from the store. That being said instead of butterscotch chips I used peanut butter chips they have the same texture but not as sweet perfect!

I find them sweet as well, I use mini muffin pans with liners, I get more portions and they are the perfect bite sized treat

My daughter and I just made this recipe. My mom and I used to make peanut butter squares when I was her age. They turned out amazing!!! We are very happy

admin says:

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Hi Abigale!

I’m SO happy to hear this!! Thank you for the 5 star review!!

My daughter and I just made this recipe. My mom and I used to make peanut butter squares when I was her age. They turned out amazing!!! We are very happy

Just the recipe I’m looking for. My sister-in-law usually supplies them for me but she has been a little slack lately. We love the frozen. Glad to know we aren’t crazy. Thanks. Definitely a five star

admin says:

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Thank you so much Ruth!!

Love this recipe and thanks for the idea of adding rice krispies or cornflakes!

admin says:

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Hi Terri,

So glad you liked them!! Thank you for the 5 star review!! 🙂

Love this recipe and thanks for the idea of adding rice krispies or cornflakes!

I make this every year but I did not know to add vanilla or to put the marshmallows in the freezer. Great tips. I use a large plastic bowl in the microwave (carefully). One minute at 80 percent, stir well and another minute at 80 percent, stir vigorously till smooth. So easy!

admin says:

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Hi Barbara,

Thank you so much for the 5 star review! So glad you liked the tips!!

I’ve been looking for this recipe ever since I tasted them about 2 weeks ago. They are delicious. I can now make them for my tray of goodies an after dinner treat. My family never seems to want dessert after Christmas dinner, so I thought a tray of smaller treats would hit the spot! Thank you for the freezer tips of the marshmallows, before and after the bars are made.

One of my favorites at Christmas. ❤ My mom always used dark chocolate chips instead of butterscotch to lessen the sweetness, so I do the same. Didn’t have crunchy PB to try so added chopped peanuts to it instead. i just put everything in a bowl, microwaved for 30 secs. Stirred then 30 secs again, stirred and added vanilla and marshmallows, stir and then in pan and done in less than 3 minutes. So quick and easy. Thank you for posting. Couldn’t remember the amounts of each ingredient, glad I stumbled upon your recipe. 😋

admin says:

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Hi Brenda!

Thank you so much for the 5 star review! All of these substitutions sound perfect and I’m so glad you found my recipe as well! Happy Holidays 🙂

Okay, I love the peanut butter, butterscotch mixture. I’ve had these often. I actually really don’t like marshmallows at all. Is there something else I could mix in that deliciousness besides marshmallows.

admin says:

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Hi Jenelle,

I have not tried with anything else, however I’ve had some people try them with nuts, and rice crispies and said they turned out great! Let me know if you do, and your thoughts! 🙂

4.87 from 180 votes (74 ratings without comment)