These peanut butter marshmallow squares, also known as confetti squares or butterscotch marshmallow squares, are the best nostalgic childhood treat! Creamy peanut butter is mixed with melted butterscotch chips and mini marshmallows for a super easy no bake dessert.

What's your favorite childhood treat? Mine is these peanut butter marshmallow squares. They are gooey, chewy, fluffy little squares that are sweet, a little salty, and totally delicious. They taste kind of like scotcharoos. The peanut butter butterscotch combo is the best!
If you love peanut butter, you'll also enjoy these brown butter peanut butter cookies and peanut butter banana cake!
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Why You'll Love This Recipe
- Fudgy texture- Peanut butter and butterscotch together tastes like peanut butter fudge. Fluffy marshmallows add a little chew, making for a delicious sweet and salty treat.
- No bake recipe- You don't have to turn on your oven to make these!
- Easy to make- All you have to do is melt butter, peanut butter, and butterscotch, mix in your rainbow marshmallows, and let the bars set.
Ingredient Notes
Here are some notes about the ingredients used. For quantities and the full instructions, see the recipe card below.

- Butterscotch chips- Butterscotch chips are flavored with brown sugar and butter. You can find them at most grocery stores in the baking section near the chocolate chips.
- Peanut butter- You can use crunchy peanut butter or creamy peanut butter depending on your preference. Make sure to use salted peanut butter.
- Butter- Melting the butter and butterscotch chips together ensures that they melt smoothly. Plus it makes the bars extra rich!
- Mini marshmallows- Peanut butter marshmallow squares are usually made with rainbow mini marshmallows. If you're not a fan of fruity marshmallows, feel free to use regular mini marshmallows. Marshmallow fluff doesn't work (too melty), but you can use it to make marshmallow fluff frosting!
- Vanilla extract- A splash of vanilla rounds out the flavor profile and enhances the other ingredients.
Substitutions
- Butterscotch chips substitute- There's another version of butterscotch squares that's made with chocolate! Substitute the butterscotch chips for chocolate chips for this flavor variation. You can also use peanut butter chips.
- Different nut butter- If you want to experiment with different flavors, try substituting the peanut butter for another nut butter, like almond butter, Sunbutter, or cashew butter.
Additions and Variations
- Pretzels- Salty and crunchy chopped pretzels create a nice contrast to the soft sweetness of the marshmallows.
- Caramel- Swirl salted caramel sauce into the peanut butter mixture before adding the marshmallows for extra richness and gooeyness.
- Chopped peanuts- Sprinkle chopped peanuts on top of the squares for extra crunch.
Step by Step Instructions

Step 1: First, add the butterscotch chips, peanut butter, and butter to a large pot or saucepan over medium-low heat.

Step 2: Melt the ingredients, stirring frequently until they're smooth and completely melted. This takes about 5 minutes.

Step 3: Take the pot off the stove and gently mix in the vanilla and marshmallows quickly.

Step 4: Pour the mixture into a square pan lined with parchment paper, spreading it evenly. Refrigerate for at least 1 hour, then slice and serve!
Tips and Tricks
- Don't overheat the peanut butter. If the peanut butter/butterscotch mixture gets too hot, the sugars in the butterscotch chips will crystalize. This will result in grainy bars instead of soft and creamy ones.
- Chill the marshmallows. Throw the bag of marshmallows into the refrigerator for a few minutes while you heat the peanut butter. The marshmallows are less likely to melt if they're chilled.
- Use a sharp knife. When you're ready to cut and serve the butterscotch squares, use the sharpest knife you have! Run it under hot water, slice, wipe off any peanut butter and repeat for the cleanest cuts.
Frequently Asked Questions
Yes! You can replace half of the butterscotch chips with dark chocolate chips. Another option is to drizzle melted chocolate on top of the set squares.
Peanut butter marshmallow squares are naturally gluten free! Make sure to check that the add-ins you choose are gluten free too.
If your confetti squares are grainy and crumbly instead of smooth and creamy, it's because the peanut butter, butter, and butterscotch mixture got too hot and the sugars crystalized. Make sure to heat everything slowly to prevent this.
Storage Tips
Store the squares in an airtight container in the refrigerator for up to 5 days. Place wax paper between each layer so they don't stick together.
To freeze, wrap the squares in plastic wrap and freeze in a freezer-safe bag for up to 2 months. Let them sit at room temperature for a few minutes before eating

More Brownies and Bars to Try
๐ Recipe

Peanut Butter Marshmallow Squares (Confetti Squares)
Equipment
- 1 saucepan
- 1 square baking pan 8x8 or 9x9
Need Metric or US Customary Measurements?
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Ingredients
- 310 grams butterscotch chips 1 bag
- 250 grams peanut butter creamy or crunchy
- 57 grams butter salted or unsalted
- 280 grams rainbow mini marshmallows 1 bag
- 1 teaspoon vanilla extract
Instructions
- Line a square baking pan with parchment paper and set aside.
- Add the butterscotch chips, peanut butter, and butter to a large pot or saucepan over medium-low heat.ย310 grams butterscotch chips, 250 grams peanut butter, 57 grams butter
- Stir the mixture constantly until it is completely melted and smooth.
- Take the pot off the heat and fold in the marshmallows and vanilla quickly.280 grams rainbow mini marshmallows, 1 teaspoon vanilla extract
- Pour the mixture into the prepared pan. Spread with a rubber spatula or the back of a spoon into an even layer.
- Refrigerate for about 1 hour or until they're slightly hardened and set.
- Remove from the pan, slice into squares, and enjoy!












April
So flipping delicious! Added roasted pecans & drizzled chocolate.