Peanut Butter Players was founded in Detroit, Michigan, in 1985 with a small group of highly talented and experienced young professional actors who ranged in age from 8-16. They performed in Luncheon Theatre at various locations including the historic Players Club and the New Center in downtown Detroit. They gained recognition by the Detroit Free Press as the Best in Children's Entrtainment, offering such plays for the family as Wizard of Oz, Tom Sawyer, Snoopy!!!, You're a Good Man, Charlie Brown, Cinderella, and many more. From this group of young performers emerged such talents as Broadways Tony Award winner Sutton Foster (Thoroughly Modern Miller, Drowsy Chaperone, Little Women, Young Frankenstein, Shrek), Tohy nominee and Drama Desk winner Celia Keenan-Bolger (The 25th Annual Putnam Country Spelling Bee), Danny Gurwin (LIttle Women, Scarlet Pimpernel), Randy Becker (Love, Compassion, Valor).

In 1991, founder Jo Anne Lamun moved to Boulder, Colorado, and the Peanut Butter Players expanded to offer, in addition to professional luncheon theatre, a full range of after school classes in theatre arts, summer theatre workshops (day camp) and a large cast summer musical. Housed in the Toadstool Playshouse at the corner of Mapleton and Folsom, the group grew in size and influence, garnering awards from the Boulder Daily Camera (Best of Boulder in kids' entertainment and Best Day Camp) and the Colorado Parent (Outstanding.Children's Theatre). Providing quality family entertainment, the Lunch Bunch performed at various locations including the Fox Theatre, the Boulder Theatre and, most recently, the Avalon Ballroom. As a non-profit 501(c)(3) organization, the Peanut Butter Players continue to merit the support of the Community Foundation serving Boulder County, the Denver Foundation, the Scientific and Cultural Facilities Tax District and numerous local and state-wide arts funding foundations.