Peggy is not seen for three years, during which time her relationship with Kevin ends. She returns to Walford when her sons fall out after Phil's affair with Grant's wife, Sharon Mitchell (Letitia Dean), is revealed. Peggy becomes acting landlady of The Queen Victoria public house and blames Sharon for the affair. Peggy tries to force her out of Walford, resulting in Sharon signing over her share of the pub and leaving the Mitchell family as the sole owners, with Peggy in charge.