Peanut Butter Fudge Recipe With Marshmallows: Cloud-Like Squares With Pillowy Swirls

This fudge delivers a perfect balance of rich peanut butter and fluffy marshmallow texture. The combination creates squares that are both dense and airy, satisfying every sweet tooth.

With a simple stovetop method and just 10 minutes of active prep, you’ll achieve professional-quality results. The marshmallows melt into pillowy swirls that contrast beautifully with the smooth fudge base.

Ingredients for Peanut Butter Fudge Recipe with Marshmallows

Ten pantry staples transform into decadent squares with pillowy marshmallow swirls and rich peanut butter depth.

The peanut butter is non-negotiable here—Jif or Skippy deliver consistent texture, but natural styles work if stirred thoroughly to reincorporate oils. Evaporated milk (not sweetened condensed) is key for that smooth, creamy base. I source mine from Kroger or any major supermarket canned goods aisle. For the marshmallows, Jet-Puffed mini marshmallows melt beautifully, but store-brand works in a pinch. Just avoid the stale ones hiding in the back of your pantry.

No mini marshmallows? Large ones chopped into quarters work too (just melt them slightly first). Swap corn syrup for honey or agave if needed, though the texture may vary slightly. For a nut-free version, sunflower seed butter makes a decent substitute—just expect a different flavor profile. The heavy cream can be omitted, but the fudge will be slightly less creamy.

Store in an airtight container at room temperature for up to 2 weeks, or refrigerate for 1 month. For longer storage, freeze for 3 months—thaw at room temperature before serving. The texture holds best when kept cool and dry.

Step-by-Step Instructions for Peanut Butter Fudge With Marshmallows

Execute these precise steps to achieve the signature cloud-like texture with pillowy swirls.

Step 1: Create the Sugar Base

In a heavy-bottomed saucepan, combine the 3 cups Granulated Sugar, 1 cup Evaporated Milk, 0.5 cup Unsalted Butter, and 0.5 cup Corn Syrup. The heavy base prevents scorching during cooking.

Cook over medium-high heat, stirring constantly with a wooden spoon, until the mixture reaches a full rolling boil. This should take approximately 8-10 minutes. You’ll notice the mixture thicken slightly and turn a light caramel color.

Step 2: Incorporate the Peanut Butter Mixture

Once boiling, reduce heat to medium and continue cooking for exactly 5 minutes without stirring. This critical timing ensures proper sugar crystallization. Remove from heat immediately after the 5 minutes.

Quickly stir in the 1.5 cups Creamy Peanut Butter, 0.25 cup Heavy Cream, 2 tsp Vanilla Extract, and 0.5 tsp Salt until completely smooth. The mixture will be extremely hot, so exercise caution during this step.

Step 3: Fold in the Marshmallows

Working swiftly, add 2 cups of the 3 cups Mini Marshmallows to the hot peanut butter mixture. Fold gently with a silicone spatula until the marshmallows are about 75% melted, creating a marbled effect.

The marshmallows will soften and begin to dissolve within 30-45 seconds of contact with the hot mixture. Avoid overmixing at this stage to preserve the swirled texture. Reserve the remaining 1 cup of marshmallows for the final step.

Step 4: Set and Swirl the Fudge

Pour the fudge mixture into a parchment-lined 8×8-inch baking dish. Spread the top evenly with an offset spatula. Immediately sprinkle the remaining 1 cup Mini Marshmallows over the surface.

Using a butter knife or skewer, gently swirl the marshmallows into the fudge, creating decorative patterns. The marshmallows will soften slightly from the residual heat but maintain their distinct pillowy texture.

Step 5: Cool and Finish

Allow the fudge to cool at room temperature for 2 hours before covering with plastic wrap. Refrigerate for at least 4 hours or overnight until fully set.

Once firm, sprinkle the 0.5 cup Chopped Peanuts evenly over the top, pressing gently to adhere. Cut into squares using a sharp knife dipped in hot water for clean edges. The fudge should have a smooth, dense base with visible marshmallow swirls throughout.

Wine and Beer Pairings for These Flavors

Beer Pairings

Rich, creamy peanut butter fudge with marshmallows pairs beautifully with a stout or porter. The deep, roasted coffee and chocolate notes of these dark beers complement the sweetness of the fudge while cutting through its richness. For a lighter option, try a brown ale—its caramel and nutty undertones harmonize with the peanut butter base, making each bite even more indulgent.

Wine Pairings

A glass of Moscato d’Asti is a delightful match, as its light effervescence and honeyed stone fruit flavors balance the fudge’s creamy texture. For red wine lovers, a Ruby Port offers a bold contrast with its berry and spice notes, enhancing the dessert’s depth. Both options elevate the marshmallow’s pillowy sweetness.

Non-Alcoholic Options

For a booze-free pairing, a cold glass of chocolate milk mirrors the fudge’s richness, while a vanilla chai latte adds warming spices that highlight the marshmallow swirls. Both drinks provide a cozy, complementary finish to this decadent treat.