In Argentina, some people add peanuts to their beer. Once immersed, the peanuts initially sink part way down into the beer before bubbles nucleate and grow on the peanut surfaces and remain attached. The peanuts move up and down within the beer glass in many repeating cycles. In this work, we propose a physical description of this dancing peanuts spectacle. We break down the problem into component physical phenomena, providing empirical constraint of each: (i) heterogeneous bubble nucleation occurs on peanut surfaces and this is energetically preferential to nucleation on the beer glass surfaces; (ii) peanuts enshrouded in attached bubbles are positively buoyant in beer above a critical attached gas volume; (iii) at the beer top surface, bubbles detach and pop, facilitated by peanut rotations and rearrangements; (iv) peanuts containing fewer bubbles are then negatively buoyant in beer and sink; and (v) the process repeats so long as the beer remains sufficiently supersaturated in the gas phase for continued nucleation. We used laboratory experiments and calculations to support this description, including constraint of the densities and wetting properties of the beer–gas–peanut system. We draw analogies between this peanut dance cyclicity and industrial and natural processes of wide interest, ultimately concluding that this bar-side phenomenon can be a vehicle for understanding more complex, applied systems of general interest and utility.