Abstract: A flavored peanut composition is provided comprising a peanut spread or peanut butter in intimate mixture with a dispersion of sugar and flavor in a margarine type oil, the composition having a moisture level of less than about 1 percent. The sugar is present at a level in excess of about 10 percent of the composition and principally comprises sucrose. The flavored peanut composition is of smooth texture and does not stick to the roof of the mouth.The flavored peanut composition is prepared by making a fluid peanut butter or peanut spread; making a dispersion of sugar and flavor in a margarine type oil with more fat than sugar being present in the dispersion; intimately mixing the peanut spread or peanut butter and dispersion in fluid or liquid condition at a temperature above about 110.degree.F.; cooling the mixture with agitation to a temperature between about 45.degree.F. and about 60.degree.F.; and immediately packaging the flavored peanut composition.