Butterscotch marshmallow squares are no bake bars made from melted butterscotch chips, peanut butter, and butter, folded with pastel mini marshmallows and pressed over a graham cracker crust. They take about 15 minutes of work and 2 hours in the fridge. One 8×8 inch pan cuts into 16 squares.
The step that matters most is a short wait. Let the melted butterscotch cool for 5 to 7 minutes before the marshmallows go in, and they stay whole and colorful instead of melting into streaks. Some families know these as confetti squares; older recipe cards just say butterscotch marshmallow bars.

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- Crust: 1½ cups graham cracker crumbs, ¼ cup granulated sugar, ½ cup melted unsalted butter
- Topping: one 11 oz bag butterscotch chips, ½ cup creamy peanut butter, ¼ cup unsalted butter
- Marshmallows: one 10 oz bag pastel mini marshmallows
- Optional: a pinch of salt if your peanut butter is unsalted
- Time: 15 minutes hands-on, at least 2 hours chilling
- Yield: 16 squares, about 2 inches each
- Keeps: 5 days in the fridge, 2 months in the freezer
Use a regular creamy peanut butter for the topping. Natural peanut butter that separates in the jar adds loose oil, and the bars set softer and feel greasy. The pastel marshmallows are only there for color. Plain white minis work exactly the same.
Graham Crust or the Old Crustless Confetti Squares?
The original butterscotch squares have no crust at all. Melted butterscotch chips, peanut butter, and butter are stirred with marshmallows and poured into a buttered pan. They are sweet, soft, and a little sticky to cut, and everyone who grew up with them remembers them that way.
This version adds a thin graham cracker base. It brings a toasty, slightly salty crunch under the chewy top, and it keeps each square from sagging when you lift it off a platter. A crispy rice cereal base works too and is airier, a bit like my peanut butter Rice Krispie treats, but it is more fragile.
To make them crustless, skip the crust ingredients, line the pan with parchment, and pour the topping straight in. Chill for the same 2 hours. The squares will be a little thinner and softer.
Pressing the Graham Base Firm

Stir the crumbs, sugar, and melted butter until the mix looks like wet sand and holds together when you squeeze a pinch. Line the pan with parchment, leaving the ends long so you can lift the slab out later. Press the crumbs down hard with the bottom of a flat glass, working into the corners.
Put the pan in the freezer while you make the topping. Cold butter in the crust stays firm when the warm topping goes on, so the base does not turn soft and crumbly.
Melting Butterscotch Chips Without Scorching

Put the butterscotch chips, peanut butter, and butter in a medium saucepan over low heat and stir constantly. Butterscotch chips are less forgiving than chocolate. Too much heat and they go thick, dull, and grainy in seconds.
Take the pan off the heat the moment the last bits of chip disappear. The mixture should be glossy and fall off the spatula in a thick ribbon. If it seizes anyway, keep it off the heat and stir hard; a teaspoon of butter stirred in usually brings it back.
That butterscotch and peanut butter pairing also shows up in my butterscotch crunch cake, and a spoonful of homemade butterscotch pudding is the softer cousin.
The 5 to 7 Minute Wait Before the Marshmallows

Marshmallows are mostly sugar and gelatin, and they melt at a fairly low temperature. Fold them into a hot mixture and you get butterscotch fudge with pale streaks, not squares full of soft, separate pieces.
After 5 to 7 minutes off the heat, touch the side of the pan. It should feel warm, not hot, and the mixture will be slightly thicker. Tip in the whole bag and fold gently with a spatula, scooping from the bottom, just until every marshmallow is coated.
Pour it over the cold crust and spread it out. Lay a second sheet of parchment on top and press with the flat glass so the topping settles into the base without crushing the marshmallows.
Chilling and Cutting 16 Clean Squares
Chill for at least 2 hours, until the middle feels firm when you press it. Lift the slab out by the parchment and cut a 4 by 4 grid. A sharp knife dipped in hot water and wiped dry between cuts goes through the marshmallows instead of dragging them.

The bars soften in a warm room, so on a buffet table set out a few at a time and keep the rest in the fridge. They are firmest and cleanest straight from the cold.
Storing and Freezing Butterscotch Bars
Keep the squares in an airtight container in the fridge for up to 5 days, with parchment between layers so they do not stick together. They can be made a day ahead for a party or bake sale.
To freeze, wrap the squares well and freeze for up to 2 months. Thaw them overnight in the fridge, still wrapped, so condensation does not make the tops sticky.
Swaps and Questions About These Squares
Can you make butterscotch marshmallow squares without peanut butter?
Yes. Swap the ½ cup peanut butter for the same amount of sunflower seed butter or cookie butter. Leaving it out with no swap makes the topping much sweeter and loses the salty balance.
Can I make them without butterscotch chips?
Then you are making a different bar. My peanut butter marshmallow squares use the same idea without butterscotch.
Can I use large marshmallows?
Yes, cut them into quarters with oiled scissors. Use the same 10 oz by weight.
What else can I make with butterscotch chips?
Try my butterscotch pistachio cookies. For another no bake bar for the same tray, my no bake peanut butter bars set in the fridge the same way.
Butterscotch Marshmallow Squares
These butterscotch marshmallow squares are no bake bars made with butterscotch chips, creamy peanut butter, butter, and pastel mini marshmallows over a graham cracker crust. They take 15 minutes of work and 2 hours in the fridge, and one 8x8 inch pan makes 16 chewy, firm squares. The key step is cooling the melted butterscotch for 5 to 7 minutes so the marshmallows stay whole and colorful instead of melting. Also called butterscotch marshmallow bars or confetti squares, they work for bake sales, holiday cookie trays, birthday parties, and lunchbox treats. Skip the crust for the old crustless version, or swap the peanut butter for sunflower seed butter. Keeps 5 days chilled or 2 months frozen.
Ingredients
- FOR THE CRUST
- 1 ½ cups graham cracker crumbs
- ¼ cup granulated sugar
- ½ cup unsalted butter, melted
- FOR THE TOPPING
- 1 (11 oz) bag butterscotch chips
- ½ cup creamy peanut butter
- ¼ cup unsalted butter
- 1 (10 oz) bag pastel mini marshmallows (pink, green, yellow, white)
- Optional: Pinch of salt if using unsalted peanut butter
Instructions
- MAKE THE CRUST: In a mixing bowl, stir together graham cracker crumbs, granulated sugar, and melted butter until evenly combined and the texture resembles wet sand.
- PRESS INTO PAN: Line an 8x8-inch square baking pan with parchment paper. Firmly press the crumb mixture into the bottom of the pan using the back of a spoon or a flat-bottomed glass to create an even layer. Transfer the pan to the freezer to chill while preparing the topping.
- MELT THE BUTTERSCOTCH BASE: In a medium saucepan set over low heat, melt together the butterscotch chips, creamy peanut butter, and unsalted butter. Stir constantly until the mixture is completely smooth and combined.
- COOL THE MIXTURE: Remove the saucepan from the heat and allow the butterscotch mixture to cool for 5–7 minutes. It should be warm but not hot to the touch to avoid melting the marshmallows in the next step.
- FOLD IN MARSHMALLOWS: Add the pastel mini marshmallows to the cooled butterscotch mixture. Gently fold them in until they are evenly coated, being careful not to press too hard or melt the marshmallows.
- LAYER OVER THE CRUST: Remove the pan from the freezer and pour the marshmallow mixture over the chilled crust. Spread it out evenly and gently press down to help it settle into the base.
- CHILL UNTIL SET: Refrigerate the assembled bars for at least 2 hours, or until the topping is firm and set.
- SLICE AND SERVE: Use the parchment paper to lift the chilled bars out of the pan. Slice into 16 squares with a sharp knife. Store in the refrigerator until ready to serve.
Notes
Melt the butterscotch chips over low heat and take the pan off as soon as they melt; overheated butterscotch turns thick and grainy. Wait 5 to 7 minutes until the mixture feels warm, not hot, before folding in the marshmallows. Use regular creamy peanut butter, not natural style, so the bars set firm. Freeze the crust while making the topping. Cut with a hot, dry knife. If your kitchen is warm, keep the squares refrigerated until serving to maintain their shape. They can be made a day ahead. Store in an airtight container in the refrigerator for up to 5 days or freeze for up to 2 months.
Nutrition Information
Yield
16Serving Size
1Amount Per Serving Calories 305Total Fat 23gSaturated Fat 10gTrans Fat 0gUnsaturated Fat 10gCholesterol 26mgSodium 122mgCarbohydrates 22gFiber 2gSugar 14gProtein 5g
