Peggy later begins dating Harry Slater (Michael Elphick), a womanizer who owns a bar in Spain and convinces her to move there with him. They become engaged, but this relationship abruptly ends when Peggy learns that Harry has sexually abused his niece Kat (Jessie Wallace) when she was 13; not only that, but Harry got Kat pregnant and is therefore the father of her teenage daughter Zoe (Michelle Ryan), initially believed to be Kat's youngest sister. When Phil begins dating Sharon again and becomes joint owner of The Queen Vic, Peggy moves back in. She later becomes sole licensee again when Sharon sells her half of the pub back to her. Peggy is briefly reunited with Frank when she travels to Spain to attend his funeral. She discovers he faked his own death to avoid creditors. While she's in Spain, she shockingly finds Sam working as a lap dancer and takes her home. Peggy later decides to move to Brazil to be with Grant but visits Walford for Sam's wedding to Andy Hunter (Michael Higgs) before returning to Brazil.