Melt the base: In a large saucepan over low heat, melt the butter, peanut butter, and butterscotch chips together. Stir constantly until smooth and creamy.
Cool the mixture: Remove from heat and let cool for 5–10 minutes. This helps prevent the marshmallows from melting when you add them.
Add vanilla: Stir in the vanilla extract and mix well.
Fold in the marshmallows: Gently stir the marshmallows into the cooled mixture until evenly coated.
Press into pan: Line an 8x8 or 9x9-inch baking dish with parchment paper. Press the mixture in evenly and smooth the top with a spatula.
Chill: Place in the refrigerator for at least 2 hours, or until firm.
Slice and serve: Once set, lift out using the parchment paper, cut into squares, and serve chilled.