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

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.

Love these treats, going to make them this week,

Great recipe. I add 2 heaping cups of Rice Krispies and these disappear when put out.

admin says:

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Hi Mark,

So happy to hear this! Thank you so much for the 5 star review!! 🙂

Great recipe. I add 2 heaping cups of Rice Krispies and these disappear when put out.

Can you use peanut butter chips instead of butterscotch?

Julie

admin says:

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Hi Julie,

Yes you can, it will just alter the flavour of the dessert a lot. I would recommend white chocolate chips, or semi sweet chocolate chips instead! 🙂

A family favourite that I get requested all the time. It’s so simple and so delicious!

If I dont have butterscotch chips is there something else I would be able to use instead? I was thinking maybe white chocolate chips and a butterscotch pudding mix. Don’t know if that would work or not.
Thanks so much

admin says:

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Hi Jaclyn,

White chocolate chips would probably be delicious and the recipe will set perfectly! Let me know if you try it!!

I had a recipe that wasn’t as good. This recipe seems to be the one my Mom had!

admin says:

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Hi Marilyn,

I’m so happy to hear that! Happy Holidays and thank you for the 5 star review!

I had a recipe that wasn’t as good. This recipe seems to be the one my Mom had!

Are the coloured Marshmallows just like the white ones only coloured? The only coloured ones I can find here are fruit flavoured.

admin says:

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Hi Krista,

They are fruit flavoured but you don’t really taste the fruit! It’s more for the looks! You can definitely substitute for white ones, I use whatever I have on hand!

Wow I’m in awe these squares were so easy to make crazy they only require 5 ingredients! Makes for a perfect no bake day with the kids!! My great grandmother used to make these sadly she’s passed on but the nostalgia and the identical taste brought me to tears thank you so much for this recipe I’m so grateful 🧡🧡

admin says:

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Hi Angelica,

Well this just made my entire day! I’m so glad you enjoyed them so much!! These remind me of my grandmother as well, my family and I make them every year!! Happy Holidays!!!

Love making this!

admin says:

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Hi Ann,

So glad you enjoyed it!! Thank you so much for the 5 star review!! 🙂

Love making this!

Looks so yummy 😋! Also smells very good 😊

admin says:

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Hi Lindsey,

Thank you so much for this 5 star review! They are just my favourite and I’m glad you enjoyed them too!! “)