Peterson made her stage debut at age seven as Gretl in the University of Northern Colorado's stage production of "The Sound of Music". At 11, she won a role in the musical film "Annie" as a dancing extra. Peterson went on to land guest spots on "Father Murphy" and "Silver Spoons". She also appeared in more than 50 television commercials. During the 1983–84 television season, she co-starred as Squirt Sawyer on the NBC drama series "Boone". "Boone" was canceled after one season.