These classic butterscotch peanut butter marshmallow squares are one of my favorite nostalgic childhood treats. Confetti squares take four or five ingredients and a few minutes to put together.
These are at the top of my baking list; I always make them at Christmas time, but I also remember having them at events like weddings, birthdays, and any family function. I think that is because they are so easy to make and you can easily make a large batch of them.
I’m not really the biggest fan of butterscotch chips as a flavor, but there is something about the combination of butterscotch chips and creamy peanut butter. I think it really has to do with the saltiness of the peanuts, which helps to make the butterscotch chips not taste as sweet, which is definitely needed in my opinion.
Ingredients for the Easy Butterscotch Confetti Squares
- Butterscotch Chips I usually use the Chipits brand (partly because it’s what I can find), so that’s what I always use, but if you can find another brand, by all means, do so.
- Butter, I use unsalted butter to control the level of salt.
- Rainbow Colored Miniature Marshmallows I’m able to buy bags of colored marshmallows where I’m located, but if you’re not, you can use white marshmallows or there are some great recipes for making your own-colored marshmallows.
- Vanilla pure vanilla or any vanilla extract you have on hand will add a nice additional flavor to this recipe..
How to make butterscotch confetti squares
- In a large pot over medium-low heat, combine butterscotch chips, peanut butter, and butter. stirring continuously until the mixture is melted.
- Allow cooling slightly before folding in marshmallows and vanilla quickly.
- Spread the mixture evenly in an 8×8 or 9×9-inch pan lined with parchment paper. Refrigerate for 1 hour until it is set. I like to keep it in the fridge or freezer so that it stays nice and cold when you’re ready to eat it, but you can keep it at room temperature just fine.
Frequently Asked Questions
Can you freeze confetti squares?
Yes, you can absolutely freeze these squares. I like to have some in the freezer as a quick treat I can bring out when guests arrive. Layer them between parchment paper to prevent them from sticking together when freezing.
Can I melt the peanut butter mixture in the microwave?
Yes, you can use a microwave-safe bowl, add everything in, and microwave for increments of 30 seconds, stirring in between each time.

Easy Butterscotch Confetti Squares
Ingredients
- 1 package butterscotch chips 300 grams
- 1 cup peanut butter
- ½ cup butter
- 1 package colored marshmallows 250 grams
- 1 tsp pure vanilla
Instructions
- Put bag of marshmallows in the freezer and line an 8×8 pan with parchment paper.
- Melt butterscotch chips, peanut butter, and butter, peanut butter 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 9×9 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.
These look great! Can’t wait to try it! Thanks for sharing!
I love everything butterscotch and cannot wait to give this yummy recipe a try!
I love that this recipe only requires a few ingredients! Looks so tasty, I’ll definitely have to try!!
Never seen these before. Intersting treat! Like your simple recipe too.
These look amazing. I’ve always loved butterscotch. My grandma always had butterscotch desserts around and it became one of my favorite things – and still is!
These look like pure holiday magic! Bet they are delicious!
These look delicious! Thanks for sharing!
These have always been one of my favourites since I was a kid! My grandma always had them every year. Don’t think I have a saved recipe anywhere but I will now!!!
So delicious and perfect for the holiday!